RE: STEEM vs SBD....DO NOT UnderEstimate SBD!!!
well I started few days ago to study steem a bit and SBD should (theoretically) only be used to safe funds because it is designed to be pegged to ~1$ internally.
in my opinion SBD is pure speculation and there is absolutely no reason to BUY it. of course it can be held in order to protect the funds against inflation within the steem ecosystem.
fact 1: outside of steem SBDs are useless -> no reason to BUY them
fact 2: in steem internally SBD are pegged to ~1$ -> theoretically no reason to speculate on SBD
fact 3: to get SP you need STEEM -> no reason to hold SBD (except protecting against inflation)
in the steem chat I was told that the "convert to steem" option was deactivated and guess why? the value of SBD is worth ~5 times more than it would be within steem. well people can make use of this situation but I absolutely don't get it. SBD is not designed to be a speculative asset and therefore shouldn't be used for speculation.
I am curious about your answers :D
The SBD peg is not a "hard" one, meaning is not pegged with hard cash, with USD kept in a safe deposit. It's more like a "soft" peg, which was designed as "$1 worth of STEEM". So basically it's a debt instrument. The problem with debt instruments is that if you abuse them, the "collateral" is triggered. An unsustainably high SBD could trigger a downward spiral for STEEM.
On the other side, it's true that SBD may be "pegged" to whatever amount of STEEM we want to, that's why I think there is still upwards potential. So in theory (as well as in practice), SBD could be safely "pegged" to "$10 worth of STEEM", or "$50 worth of STEEM", as long as the debt-to-ratio numbers are not too big.
yeah I think I got it now. need to do more analytics and predictions regarding market trend.
the only thing that is confusing is that there are a lot of old entries that describe SBD as a "pegged-to-1$-token"
I do see your point.. but even though it “isn’t an actual coin” it still has an increased value... tat the moment 5 times higher than $1. Therefore , it is good to have it.. not just to fight inflation, but because you can make profit from doing so.
For example: i right now hold 70SBD’s... worth $350 .. but in 2 days the price could very well go back up again to $10 a coin.. and be worth $700 instead. It happened before.. and it will happen again.
It is a risk to hold it... yeah... but it is a risk to hold any real crypto too!
Also, you can’t “?convert to steem “ but you have the market option to do exchange it too. Many of us don’t even use the other option anyway.. since it ends up being more expensive.