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RE: If You Want To Push Steem Dollar Down To Parity With The US-Dollar, You Need Helicopter SBDs!
That SBD is treated as one US-$ and that Steem is much more scarce than SBD. Both should indicate a higher price of Steem in US-$ than SBD in US-$.
Rationally, the price for one Steem is about 14 US-$ and one SBD is 1 US-$. But looking at the market you will find 8 US-$ for SBD and 6 US-$ for Steem.
That is totally counter-intuitive. There is absolutely no reason why this should be that way.
How do you got that number? By simply adding them? Lol
But yes, Steem should be higher and SBD at 1USD ideally.
Also, SBD is actually more scarce, if you look at CMC.
And I also agree that there is no reasonable reason for this.
I belive the smaller supply of SBD is the reason for it: The 'investors' see a low supply coin and just speculate that the price will rise cause of its scarcity.
hmm I haven't looked at that. Theoretically, market prices always include expectations. It would be interesting to have SBD futures, although the overall expectation is "hype", I guess.
Why lol? That's how you do it. At least when you are convinced that nobody understands the difference and why there is a distinction in the first place.^^
Probably, yes... hm, I think I see the bigger picture now: There are 5 million SBD in circulation but ~250 million Steem. That would imply a price ratio of around 50:1 and if you assume 1 SBD = 1 US-$, then this implies a "fair" price for 1 Steem of 2 Cents... lol
The scary part of these price/supply ratios is that they imply what could happen to Steem in an extreme case if the peg for SBD needed to be enforced: Almost all value would be lost.
But that implies that both coins have the same actual value/usabilty. There is no reason why SBD and Steem price should be made 'even'. Or not?
Oh sorry, I forgot that we are discussing why SBD price is so high lol
Don't worry, it's confusing me too. I think the bottom line here is that there is an imbalance, but only limited tools to reduce it in a controlled way. The questions are now:
For what I have read an heard, the SBD price has hiked because of the Tether hack.
People have started using SBD because of speed and no-fee qualities of SBD to get their money quickly in and out of exchanges instead of USD-Tether...
That would explain a lot...
Thx for that info.It is quite an advantage, but doesn't Steem have the same qualities in terms of speed and fees?