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RE: STEEM DOLLAR Will Fall To $1 USD : Here’s Why
This is self-correcting in time.
I have no idea of why investors choose to dump money into investments that they know nothing about. A currency that's valued by a platform at $1 USD should always keep a value of $1 USD, unless people are oblivious as to what they're purchasing.
Sadly the crypto markets are full of people who are oblivious about what they're purchasing. A major market correction will eventually happen, and it's going to be ugly when it does :(
I agree, I have been telling people not to buy SBDs from external markets, even as a way to buy Steem Power as they are supposed to be pegged at $1 USD and I expect a correction. I advise them to buy Steem as it is the de-facto token on the Steem blockchain and has a greater potential to rise in price, not SBDs.
Indeed. That is why I think we have a responsibility to try and educate people about our platform and make sure they are informed about investing in us. In the long run we will be better and stronger for it.
It is also possible they know something we don't know. It's too soon for me to know how much a Steem Dollar is worth. I want to see how SMTs interact with SBD.
Steem dollars have no defined role in SMTs. There is no connection.
The only thing that SBD buyers know that some here do not know is that the mechanism is broken and does not effectively enforce an upper price bound. Therefore it makes perfect sense to buy it above $1 if you think it will go higher (and history has shown perfectly clearly that going higher is not only possible, but plausible).
How will we buy SMTs and when people buy SMTs what is the stable token going to be? Why woudn't SMTs increase demand for Steem Dollars?
There is no stable token defined in any part of SMTs. You will buy SMTs with STEEM or possibly with SBD or with other SMTs , but there is no special role for SBD in the design.
Another SBD myth dispelled. Thanks again @smooth :)