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RE: 50/50 vs 100 Steem Power post payouts
Thanks @kenny-crane I have a hard time understanding why SBD is so overvalued right now. I thought it was pegged to the dollar in one way or another.
Thanks @kenny-crane I have a hard time understanding why SBD is so overvalued right now. I thought it was pegged to the dollar in one way or another.
There are tools to TRY and peg it to the dollar. The main tool is interest rate. The higher the interest rate, the more likely people want, and hold SBD, for the continual income from interest.. The lower the interest rate, the less likely people want SBD. But we are already at 0% interest and people Still Want SBD. So the tool can no longer lower its value. It has good value because it has a defined lower boundary price. It probably will never go much below $1 because when it does, witnesses will RAISE the interest rate and people will want it again and bid up the price. So it is an asset that most likely will never go below a certain value, around $1, and that is something people want to own! My opinion, anyway! :D
Very good explanation. I never thought about it that way, I have never been a fan of holding SBD as I have always believed that the price of Steem would eventually go up and make holding Steem or Steempower much more profitable in the mid/long term! Value your opinion and thanks for your excelent reply!