i am reading the white paper now to try get more clarity on this. Taken directly
"The primary concern of Steem feed producers is to maintain a stable one-to-one conversion between SBD
and the US dollar (USD). In a market where debt still demands a premium, it is safe to say the market is
willing to extend more credit than the debt the community is willing to take on. If this happens a SBD will
be valued at more than $1.00 and there is little the community can do.
If SBD trades for less than $1.00 USD and the debt-to-ownership ratio is high, then the feeds should be
adjusted upward to give more STEEM per SBD. This will increase demand for SBD while also reducing
the debt-to-ownership ratio and returning SBD to parity with USD.
"
So I think that if a negative bias is used as per @dragosroua is put into play, we could see that pump happen! that's interesting.
However I also believe that higher price SBD give shorter term thinking for many, long term I am happy with a pegged price, but who does not love a pump.
yeah, I am not sure how the witnesses handle it but it is obvious that some are happy with a peg and some are happy o have a lot more SBD on the market place riding very high
i am reading the white paper now to try get more clarity on this. Taken directly
"The primary concern of Steem feed producers is to maintain a stable one-to-one conversion between SBD
and the US dollar (USD). In a market where debt still demands a premium, it is safe to say the market is
willing to extend more credit than the debt the community is willing to take on. If this happens a SBD will
be valued at more than $1.00 and there is little the community can do.
If SBD trades for less than $1.00 USD and the debt-to-ownership ratio is high, then the feeds should be
adjusted upward to give more STEEM per SBD. This will increase demand for SBD while also reducing
the debt-to-ownership ratio and returning SBD to parity with USD.
"
So I think that if a negative bias is used as per @dragosroua is put into play, we could see that pump happen! that's interesting.
However I also believe that higher price SBD give shorter term thinking for many, long term I am happy with a pegged price, but who does not love a pump.
yeah, I am not sure how the witnesses handle it but it is obvious that some are happy with a peg and some are happy o have a lot more SBD on the market place riding very high