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RE: To SBD or not to SBD – Why is That a Question?
We have to think like a business man.
Yeah - that's what I do. And as a businessman, I would much prefer to work with SBDs than with STEEM. If we want merchants to engage in commerce, then having the SBD option will bring more of them into the mix than having only a volatile cryptocurrency. What most of you fail to realize is that cryptocurrencies are volatile. STEEM is no different, with or without SBDs. Getting rid of SBDs won't auto-magically make the STEEM price more stable. It will only make onboarding merchants more difficult.
If you think like a businessman, then you should think about what benefit SBD brings to Steem price. So simple right? No benefit but serious cost! Let's say SBD lured merchant, what benefit steem get from that? NONE but price collapse. Since SBD is[ steem backed dollar], sbd will collapse too eventually. Sophisticated investors understand this and they don't invest money into steem! this is act of stupidity. We have to be smart.
So you're dismissing network effect as a potentially enormous contribution to STEEM prices? Interesting.
"Sophisticated investors" would likely understand the value or utility of a U.S. Dollar-pegged cryptocurrency and how it could greatly outweigh any pressures on STEEM prices. Also, those "sophisticated investors" would likely not invest in either STEEM or SBDs so long as the development and marketing of STEEM/Steemit is poor. This is a much larger issue than debt loads from SBDs.
As I said - I think like a businessman. I am one. There is much more value in SBDs for me as a potential merchant/investor using STEEM/SBDs for my business. If we want "to be smart," we need to stop confusing causes and effects and we need to stop trying to find reasons to eliminate features that will assist with onboarding users. STEEM/Steemit needs more people using the currency and platform. SBDs help with the onboarding issue, whether you want to believe that or not.
NO, there is NO SBD network effect.
SBD is only another form of DOLLAR. If SBD starting to take fee, merchants will simply change to paypal.
Network effect created when ppl actually use STEEM.
You are confusing two very different things.
If SBDs can actually lure merchants, as you suggested, then there certainly would be a network effect. Right now, there is no network effect, either for STEEM or SBDs. But - once again - this is not because SBDs exist.
Cause and effect. You're confusing or just completely missing them.