Of course that could always happen, no one knows what the future will hold, however you have to make the best bets you can based on probabilities. I'm betting that it's more likely that STEEM will go up and SBD will tend towards $1 than the other way around. I think that the SBD pump back in November was a very rare event and I am not comfortable betting on it happening again. Doesn't mean other people don't want to take that gamble though!
Still I don't like when people who are regarded as knowledgeable on the Steem platform give advice to hold SBD - I think that causes other people to do it who don't understand how big of a gamble it is.
SBD is pegged only to the lower end that is it can't go below 1 USD backed by STEEM. However, it is not reverse pegged to keep it within one USD. Therefore, there is no upper limit where SBD can go.
Moreover, there is another significant motivation behind pumping SBD up since rewards are mostly related to SBD's current price (e.g. the higher the better). People are earning more due to high price of SBD.
On the other hand, high price of SBD is probably suppressing STEEM's price, however, there is no way to prove it. Moreover, stable currency nature of SBD is lost too.
At the end, I believe due to lack of reverse-peg and strong positive correlation of reward with SBD's valuation, it is hard to keep SBD at one USD. Now add to that speculation (e.g. history of several pumps), SBD will be always vulnerable for more pumps.
Indeed, these are very wise words! If somebody wants to bet on something, first he must understand the risks! Well... at least SBD shouldn't go below 1$, so the loss is calculated too.
At this moment the whole crypto market is like a big gamble. One day we go down with 15% and next day up with 7%. And that's not a one time thing, it almost happens 8 days per week!
And how many pumps have there been? At least 2 I would say. The lower the market cap the bigger the chance for a pump, right?
Although I believe SBD could be correlated with the Steem price, I do agree that it might be better to directly sell the SBD or get Steem for it. Cause when if they correlate, the price gap increases when the Steem price gets higher.
Of course that could always happen, no one knows what the future will hold, however you have to make the best bets you can based on probabilities. I'm betting that it's more likely that STEEM will go up and SBD will tend towards $1 than the other way around. I think that the SBD pump back in November was a very rare event and I am not comfortable betting on it happening again. Doesn't mean other people don't want to take that gamble though!
Still I don't like when people who are regarded as knowledgeable on the Steem platform give advice to hold SBD - I think that causes other people to do it who don't understand how big of a gamble it is.
SBD is pegged only to the lower end that is it can't go below 1 USD backed by STEEM. However, it is not reverse pegged to keep it within one USD. Therefore, there is no upper limit where SBD can go.
Moreover, there is another significant motivation behind pumping SBD up since rewards are mostly related to SBD's current price (e.g. the higher the better). People are earning more due to high price of SBD.
On the other hand, high price of SBD is probably suppressing STEEM's price, however, there is no way to prove it. Moreover, stable currency nature of SBD is lost too.
At the end, I believe due to lack of reverse-peg and strong positive correlation of reward with SBD's valuation, it is hard to keep SBD at one USD. Now add to that speculation (e.g. history of several pumps), SBD will be always vulnerable for more pumps.
Indeed, these are very wise words! If somebody wants to bet on something, first he must understand the risks! Well... at least SBD shouldn't go below 1$, so the loss is calculated too.
I only buy SBD if I intend to spend it, STEEM if I intend to save.
At this moment the whole crypto market is like a big gamble. One day we go down with 15% and next day up with 7%. And that's not a one time thing, it almost happens 8 days per week!
And how many pumps have there been? At least 2 I would say. The lower the market cap the bigger the chance for a pump, right?
Although I believe SBD could be correlated with the Steem price, I do agree that it might be better to directly sell the SBD or get Steem for it. Cause when if they correlate, the price gap increases when the Steem price gets higher.