SBD Officially Lower Than STEEM On The Internal Market
As you can see from the screenshot below, you would have to spend a little over 1 SBD to buy 1 STEEM on the internal market, which means SBD is lower than STEEM:
At the moment of writing, the prices on Coinmarketcap were:
SBD total circulating supply is a bit over 10 million tokens. When the first SBD pump started, in November last year, total circulating supply for SBD was 3.5 million tokens. The increase is due to the witnesses who adjusted their price feed bias (me included) so more SBD gets printed instead of STEEM.
I'm a serial entrepreneur, blogger and ultrarunner. You can find me mainly on my blog at Dragos Roua where I write about productivity, business, relationships and running. Here on Steemit you may stay updated by following me @dragosroua.
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I don't get it . Why did you increase 'printing' of SBD's ? Isn't that lowering price of SBD and how is that a good thing ?
SBD are meant to be = a $1. They want to return SBD to have a usd value again
I understand that but why ? Isn't high price of token good for everybody ?
Steem is the main currency of steemit. It the one that actually has some value with it. Sbd are not meant to be more than a $1. Sbd are like steem futures that = $1.
If sbd are more than steem it ruins the balance.
still don't get it . what was the purpose of having SBD's ? Why not have only steem then ?thanks for trying to explain ...
liquid rewards
Glad to see SBD finally going towards its pegged value...
Thanks for the new dude...
Waiting for your RUNCOIN-SMT ;-)
prices doesn't matter..We love SBD and STEEM way too much to compare the prices , also comparition is the thief of JOY ;-)
Oh no! The red team and the green team are now fighting over the 1.0 line!
Crap :)
I really wanted a good gap (1SBD - 1.5 STEEm ratio and above) so I can power up. Looks like I'm going to cash out my SBD quick hahaha. I need to buy some new video equipment anyway :D
That's what I wanted too @adetorrent but I'd lowered my expectations to 1.2. I'm stuck now! ##bsm
I think it will still swap around though, at some point tonight or tomorrow morning.. Then it will be higher for a little bit, and then lower again. So like a pendulum, it will swing downwards until one day, .... it will never go higher than Steem again. At that point....as it approaches $1.... they will implement the peg!
And then balance will be restored to the force.
by they you mean witnesses? I doubt they could implement it as it is already implemented, but not enforced. There aren't other things that witnesses can do outside the Steemit ecosystem, I mean other than what they are already doing, so it will be supply and demand.
IMHO, it will be a gradual process, which will make the pump of SBD more and more expensive, so its value will go back to $1
Who's they? The witnesses?
Let's hope the pendulum swings to 1.2 again so I can get back into the powering up game else I my SBDs might be frozen in time forever! 😁
Damn...I have got SBD stored...
How long before the witness will start adjusting the reward feed in favor of steem???
Its good for steemit, if more reward is converted into steem power....
If the price of SBD is approaching the peg, then 50/50 will be in favor of SP.
Yeah...I read you previous post about 100% powerup strategy...
Now I have a clear concept, thanks to you
It is indeed fantastic when Steem goes up. But ... then you must first have it!
And how do you think people buy Steem? .... Most of them, including myself buy Steem with SBD and if the Steem is much higher than SBD, it will become increasingly difficult for those people to buy Steem with their SBD's. Or do I make a fallacy?
Nope, STEEM is usually bought with SBD, so STEEM will become harder to get. Usually, when something is hard to get, its value also increases. Wink, wink.
Thanks for explaining, So I have to get started to collect even more Steem!
I really hope it does, because if Steem doesn't get back to what it was in January or climb higher, then by tanking SBD to 1$ is effectively ruling out Steemit as a reliable revenue stream for independent content creators that aren't whale backed.
The beauty of it was that you could skate by and actually focus on making quality content without worrying that everything had to be whale bait or bot voted to hell and back. High SBD enabled that freedom. Lowering it puts control of the platform back into the hands of the big players, the kingmakers embroiled in their petty disputes.
Then there's the other problem. Unless I misunderstood, SBD rewards will be constant in their amount, no matter the SBD price, while Steem, if it goes up, will be harder and harder to get. Sure, it's worth more, but you get the same value of it as reward, so you're actually getting less of it in terms of quantity.
Thankfully we've got a bunch of Steem stashed away, in case the price increases, but with SBD dropping hard, unless they add a curation system that actually helps increase visibility of actual content, not just spam, there really isn't much reason to not cash out of the blockchain. It's just not worthwhile to trade having to grovel to corporate sponsors for having to grovel to whales and bots.
And more sbd being printed means sbd gradually returning back to $1 right ? This is bad news for me and other content creators on steemit...What a bad night for me.
This is not bad news for you, on the contrary. As long as SBD is stable, STEEM can go as high as it can. You do get your rewards in SBD, but only because the peg is broken. The base currency here is STEEM, not SBD.
But then the higher the price of steem, the harder it is to get steem power and since sbd would be pegged at $1 ,one would have to spend more sbd to get just a little amount of steem .
Interesting. I've read about "price feed biases" and how those affect the printing rate of SBD's... Is there a mechanism out there that would eventually decrease to total circulating supply of SBD's (say, back down to 3million, as opposed to the current 10M)?
Also, as the value of SBD's drops closer to the 1USD peg, do you suspect that STEEM would see a rise in value?
The only way I know of decreasing the SBD supply is to "burn" it via the Promote button, which, technically, sends it all to
null. So, theoretically, large holders of SBD can choose to burn it (I think you can already see if this is happening, because all transactions are public) by sending it tonull, which will decrease the supply. But this is not part of the blockchain consensus, as the printing is, it's just an individual decision.As for the price of STEEM getting up, I see little correlation between SBD and STEEM once the peg is restored. So STEEM will increase, but not because SBD is back at the peg, but because there's value in this token, community, tech, etc. At the moment, with SBD off the charts, too many people are focusing only on immediate rewards, and not on the long term goal of this whole thing.
I agree that high SBD value has definitely been a bit of a distraction away from STEEM. It has been nice being able to purchase a higher amount of STEEM with them, and then power up for the long haul for the time being though. Speaking of the different communities and tech that are a part of STEEM, I'm planning on looking in to utopian.io in the next couple weeks here and seeing if there are any projects that I can contribute to in some way -- so many ways to interact with this blockchain.
Thanks for the response -- your posts are usually just "layman" enough that I can start to understand what's going on.