I thought 1 SBD = 1 US $, always. It is not the case anymore.
Wasn't it the whole point of its existence in the first place?
Good or Bad ?
I don't know. I am not a master of cryptoeconomics. If someone can enlighten me, that would be great!
I am worried it does feed the price creating a fake increasing trend.
Hello @cryptohazard
You are absolutely right! It is pegged to the US $.
I guess that they are not able to keep 1 SBD at 1 US $ at the moment since everything is going to the moon.
Have a good laugh:
I just hope it doesn't make an extra bubble here. The price can diverges a bit every now and then but now this is clearly not the case. Then you ask yourself where does the value of SBD comes from?
Hello again @cryptohazard
If you read this post carefully you will find the answers:
https://steemit.com/steemit/@elyaque/daily-steem-report-may-21th-steem-1-18000usd
checking it right away
also very funny... I can count how many times I have been on facebook the last couple of years now.
Who ever said a coin on an open market had a set price? I am not sure how that would have been possible.
bitshares does it, like most decentralised exchanges. Look at this one for instance, https://tether.to/why-use-tether/, it's used by poloniex.
I'd like to know as well.
I hope it doesn't have some nasty effects here.
Well, SBD is just an asset that represents a smart contract. The smart contract is enforced by the blockchain 3.5 days after a conversion is requested in the wallet. You will get 1 usd's worth of steem for every sbd that you convert at the median price feed maintained by the witnesses.
So the smart contract "assures" that a SBD will be worth "at least" 1 usd. In the short term there is no way to hold the peg if the demand is much greater than the supply.
From the whitepaper, the goal is that 1 SBD = 1 $. I mean this is not the first time someone tries to do it, like bitshares or tether. So are trying to correct the price or no? don't they care anymore? I remember a lot of post about removing SBD but I didn't get everything.