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RE: If You Want To Push Steem Dollar Down To Parity With The US-Dollar, You Need Helicopter SBDs!

in #steemdollar • 7 years ago

Not a big fan of the confusion that SBD causes especially now it has become untethered. That is the real source of confusion. How is it a Steem Dollar of it is worth more than a dollar? What I'd really like to know if it will ever go below $1 now, or if that really is a guaranteed minium. I would say that sometime really should fix the pegging and drop more fiat into deposit and print more SBD so that SBD can return to $1. Last time I heard anything they said there was only 3M SBD and that is a ridiculously low amount IMO.

I'd love to know how you think SBD is a threat to the platform? How does that work?

7 years ago in #steemdollar by
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     7 years ago 

    How is it a Steem Dollar of it is worth more than a dollar?

    And more importantly: How can it be more worth than Steem? SBD is just a tool for Steem and without Steem there is no SBD.

    What I'd really like to know if it will ever go below $1 now, or if that really is a guaranteed minium.

    Technically, there is a guaranteed minimum. It is stated in th whitepaper that witnesses can pay a positive interest if users hold SBD in their wallet (see "savings"). Since quite some time the interest is zero, but if necessary it can be increased again. Here is a table with the rates witnesses are suggesting.

    I would say that sometime really should fix the pegging and drop more fiat into deposit and print more SBD so that SBD can return to $1.

    That would be one fix, yes. But I'm not sure if it's the best one. It could undermine the trust massively since the confusion between Steem and SBD still is prevalent.

    they said there was only 3M SBD and that is a ridiculously low amount IMO.

    According to Coinmarketcap there are currently ~5 million SBD in circulation. Multiply that with the price per SBD and you get out a really nice yacht. Or bring trouble to Steemit.

    I'd love to know how you think SBD is a threat to the platform? How does that work?

    • at least some witnesses don't understand the economics, they don't know what they are doing
    • if a whale suddenly drops enough SBD on the market and the price drops below 1 US-$ they have to give out interest, which only works for a certain time. If there is more dropped they have to limit the Steem supply and at the end limit the bandwidth per user
    • but first and foremost, it's a trust and confusion issue. After all SBD and Steem are currencies and the rule with money is: You need absolute trust! You don't give your money to an untrustworthy bank, or ask someone untrustworthy to look for your wallet. You want clarity and you want signs that you can trust the bank. If now Steemit is pretending to be a blockchain/crypto place but runs a poorly managed fiat currency, then this is to me the opposite of trust. Right now, Steemit and its currencies are nothing more than hype and pure speculation and as an investor I wouldn't see a reason why I should keep Steem or SBD in my wallet when the first big crash comes.
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