RE: Thoughts on STEEM-Backed Dollars and Holding the Peg
My understanding (which is questionable as I am fairly new to the cryptoshpere) is that the internal market has a trading price at almost half that of external markets for Steem (SBD to STEEM).
The listed price on the internal exchange roughly translates to the external exchanges if buying/selling SBDs and STEEM from your wallet, internally. However, the conversion function doesn't give you a premium like you would get on the external exchanges. You're still only getting approximately $1.00 of STEEM, despite the price being near $2.00.
What would the effects be with a 100% Steem Power post?
None. When you do a 100% SP post, no SBDs are created. Don't do that. Take the SBDs as long as they are trading at such a high price. It's good for you and selling them is good for trying to maintain the $1.00 peg.
The fog has lifted....thanks for the info @ats-david!
@ats-david
I'm with you on this one cause actually had I not known @timcliff when I read his post about pegging it I was a bit shocked that he's proposing it and I thought - what happened to the free market? Let the market do its move - but knowing @timcliff always have good intent and consistently have shown that - maybe there's something I missed on that too intelligently written post.
As for pegging it - would it not make it almost like of that fiat money? Why peg it? Control? - why worry about the merchants having to keep watching the movement of the market - I thought .. but anyway these are all honest questions - there are many things that I still don't know of - so @timcliff I hope you don't get offended with these questions and enlighten us please. Thank you