What is that steem dollar ( SBD )

Steemm Dollar (aka Steem Backed Dollar or SBD) is a token worth about $ 1 USD, making its value much more stable than STEEM (see STEEM_Tokens) To be a little more technical, Steem Dollar is a promise To pay a dollar worth of Steem when redeemed .

The benefits of Steem Dollars is that businesses can accept them more comfortably because they have a more stable value. Can you imagine being a shopkeeper and trying to sell your $ 50 product for STEEM that was a few months ago for 500 Steems compared to today's less than 50. The prices of their products and services are much easier when using a stable value, as well as knowing what Which they have paid, will not lose value.

To try to store SD around the $ 1 sign, Steemit's Sitnesses (see Steem_Witness) can change the interest rate paid (quarterly) to hold them in your wallet. Lately this rate has 0% with SBD prices higher than desired. When approaching or below the value of $ 1 USD, we will begin to see an increase in interest rates.

Steem Dollars can also be converted to STEEM in a process that takes 3.5 days. However there is a faster option to use the Internal market.

Example

If the STEEM course is 10 cents, one Steem Dollar can be redeemed for 10 STEEM. When STEEM is at 2 USD, Steem Dollar will redeem by 0.5 STEEM.

Note

The SBD course is not fixed, in some time as from May to June 2017 has approached $ 2 USD. In August 2017 it was reduced to $ 0.8 USD.

Reference

Jump up ↑ Steemit FAQ: What's the difference between STEEM, STEEM Power, and Steem Dollars? Retrieved 22 Aug 2017Jump up ↑ Coinmarketcap.com: Steem Dollars (SBD) Accessed on August 23, 2017

Link

@krnel: Ned on SBD: "Do people want to continue to be paid with Steem Dollars?" December 21st, 2016 @ausbitbank: PSA - Steem Backed Dollar Printing has been suspended March 2017 @timcliff: Debt Reduction SBD - Fiscal Conservative Outlook in March 2017 @steevc: Can SBD work with such crazy numbers April 2017 @clayop: SBD Overvalued - Facts and Suggestions for Turning Crises into Opportunities April 2017 @chitty: We need more SteemApril 2017 @clayop: Towards Bulk Doll Adoption Steem: Is Pegging Really Important? April 2017 @timcliff: Saving SBD - Proposal to Return $ 1 USD / $ 1 SBD Peg May 2017 @someguy123: SBD is no longer $ 1, what do we do? (Witness Discussion) May 2017 @sykochica: Answering Common Questions: Steem, Steem Power, Steem Dollars and What do I do with them? June 2017 @shenanigator: Why Steam Dollar Prices Are Precious While All Other Cyrpto Prices Crash June 2017 @nanzo-scoop: Flying Pigs have landed ... Time to pile them Steem Dollars? June 2017 @chrisaiki: Stable Crypto: BitUSD, USDT, Bit20, VIVA, HERO, X8. August 22, 2017