RE: If You Want To Push Steem Dollar Down To Parity With The US-Dollar, You Need Helicopter SBDs!
Well, I guess SBD has a proper function, it´s just a useless - or better: misused - one at the moment. I guess the idea of Dan was simply to introduce a stable token inside the Steem blockchain - similar to what he is doing with Bitshares and bitUSD. A less volatile token, that you can fall back to, when the market is going crazy. So the idea is stability. Now that this didn´t work out as we see, is another thing. The whole SBD idea took on a dynamic, that no one could predict at the moment of its conception. Since this is simply the way the community went, which is for sure not why the SBD was invented, the whole issue can and will only be cleared up through an adjustment of the community. I guess, there will never be a central agent - like lets say Dan - who will shut the SBD down - which would, by the way, be against all rules of the decentralized idea.
So yeah, it´s totally correct to speak up and be concerned about some developments, but the solution is the same as the cause of the problem: us.
Yes, that was the intention, but it obviously got out of hand. I'm particularly wondering why SBD is traded outside of Steemit. It should be exclusively be a thing on Steemit and not on Bitrex and whatever their names are. Also strange is that it is listed on cryptocurrency market sites. You don't do that with a mere exchange token. If anything needs to be done then to take SBD out of the circulation outside of Steemit. That is for sure.
That's the job of the witnesses. But it seems most of them are just happy with the way it is: 1000 Steem per day is not bad even for the digital startup business and if it goes bust, they can simply walk away.
Well, they try to sell bitUSD and other bitshares coins also on other exchanges - Tether is also traded on different exchanges...
Sure, this can happen, but I see no higher probability as with other coins - and yes, I agree, that this imbalance should be corrected, but I trust in the market and the wisdom of the crowd to do so.
In my view, the witnesses also feel a bit helpless about the situation and simply have lesser control over the SBD value as they thought...
yeah, I think I read that somewhere else. I understand it when they do it with crypto derivatives, because you can burn them into the blockchain and basically take over that coin. But doing that with fiat currency that you have no control over seems very strange. The only viable way to do this is imo with a vault full of cash somewhere. But that wouldn't be "decentralized".
The market will fix the problem at one point, that is sure. My concern is that it might hurt a lot and end Steemit.
I think, I have still not completely understood the bitshares concept regarding bitUSD etc., but what I understood is, that each bitUSD is backed several times in real fiat by different issuers, making it decentralized in the end - again, when I first heard this, I could only sense, that Dan is some kind of genius and it sounded valid, but I didn´t take the time to research it in full detail. It may be similar with SBD...
Anyway, I share your concern and of course there is the danger, that some people get hurt, which, as sad as it is, is also part of this whole crypto game. I think, that Steemit is just in its infancy and won´t end anytime soon - but it will end sometime and this will happen, when no new money is flowing into the system - which would also happen to Facebook etc., when advertisers would stop investing, in which case also quite a lot of people and businesses would get hurt. In a way this hurt is immanent in every system - may it be regular "advertisement based" or "decentralized".
That sounds like it should be and if it's the same with SBD then there is no problem, but just a lot of strangeness that someone sees it a good investment to pay 8 Dollar for one decentralized Dollar.
But I doubt they do that with SBD.
That's my opinion too but I believe it has to eliminate potential weaknesses, because at one point there will be a big crypto carnage in which all the weak concepts are washed away. In its present shape I don't think Steemit would make it and two of the biggest questionmarks are the confusion for users in combination with this cretin of a currency SBD.