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RE: STEEM following SBD in its footsteps!
Correct me if I'm wrong, but unless they made changes at some point that I wasn't aware of, I thought the SBD was pegged to the dollar. Which if this is still true, would be crazy to see this high of SBD. I would think it would have to come back down fairly soon, with STEEM not too far behind overtaking SBD's price.
It's supposed to be pegged, yes. But apparently they don't have a mechanism that makes sure it stays at $1. I should check steem.io and read the whitepaper to see how it works exactly.
Thanks for reading!
SBDs are "half-pegged" there is a floor at $1 because you can always use the "convert" feature to get 1 SBD worth of Steem regardless of market price.
There is no mechanism for keeping the price from rising except that when people receive rewards it prints more SBD which increases the supply and puts downward pressure on the price.
So it will never go below a dollar and when it goes high, the price will eventually trickle back down as people start taking 50/50 rewards instead of just powering up.
Hope that helps.
Thanks a lot for the clarification! That's a nice mechanism to keep it at $1. Although I've seen it go down to 90 cents, it didn't go lower than that, so apparently it works :)
Yeah, it's a nice solution! If you ever see it below a dollar, use the "convert" feature. Otherwise just use the market.