Steem Dollars is pegged to the US Dollar thus should be more "stable" than STEEM.
No matter how well or how badly STEEM does, you can always exchange 1 STEEM Dollar for 1 US Dollars worth of STEEM.
An additional attraction to STEEM Dollars is that it paying out interest at 10% pa.
STEEM Dollars are also liquid. You can cash out anytime. STEEM Power requires you to power down at a rate of 1/104 over two years (see here for a simple explanation).
That's a simple explanation of why people buy STEEM Dollars. A lot of bloggers, will like to cash out in a currency that they can translate to their day-to-day life simply. STEEM Dollars allows that.
Investing in STEEM is like buying a stake in the eco-system. As the network's wealth grows you share in the success. Also it gives voting influence.
STEEM Dollars and STEEM combined offer the best of both worlds. Cashflow and Capital growth.
Happy with @bitcoincash his question !! And even more happy with your answer, i start understanding it, i think thank you so much !
I upvote you, too
i cant find liquid market on steem dollar, can you?
I was wondering this as well. Thanks for the info! UV and followed!