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RE: If You Want To Push Steem Dollar Down To Parity With The US-Dollar, You Need Helicopter SBDs!
@doodlebear, I am not arguing with what you say. But in basics, every crypto currency is also a Fiat-currency. The only difference with USD, EUR, GBP... etc... is the decentralisation. That is the difference, and as far as I know SBD is created by blogging, just like Steem. It is just more liquid. But it is decentralised.
Fiat is Latin for "let it be as it is" which is old talk for "Trust" so without trust in Bitcoin, there is no value, just as any other cryptocurrency or paper money...
I just don't see your reasoning.
I am aware that Steem too is a sort of fiat currency. After all there are hardforks/updates all the time and everytime they seem inflate it a little. I don't see a problem with that because it is part of the system and it is still young and expanding without causing inflation, so there is no real reason for hard restrictions or a stricter limitation of the bandwidth per user (which is equivalent to the interest of the central bank).
That is wrong. I haven't read all the details, but as far as my understanding goes, SBD can be created almost limitless by whales with their activity. Steem is limited by the blogging capacity but SBD is not. There is no blockchain that SBD is binded to, no general rules, just the expectation that nobody does anything stupid with a big stash of it and that the witnesses increase the interest in case it drops below the 1:1 peg.
The interview with Tim Cliff that I have linked in the post contains some information about it.
I thought that SBD is also creating by blogging...
You get 50% of your payout in SBD, so the more Steem is worth, the more SBD is created. How would that work if whales could create SBD? Or where?
Nope, the amount SBD is not fixed to the blockchain and I haven't figured out yet completely the system myself. I'm still on the surface.
At least I get much more SBD than Steem for my articles. The last one was "Claim rewards: 8.582 SBD and 1.356 STEEM POWER". It's 5:1 right now.
Yes, that's because Steem is worth much more. Let's say (Steem is worth 5$) and you receive 10$ after curation, for that you would get 5 SBD (10/2) and 1 Steem (Power) (10/2/5).
This ratio ( 5:1) is determined by the price of Steem in Dollars
Edit: I already wrote this at my other comment, but here again:
For the Steem blockchain it doesn't matter how much SBD is actually worth, it is treated as one USD.
Agreed, but why is the market ignoring that?
Ignoring what exactly?
PS: I edited my other comment with an addition.
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.