With SBD at $2.50 we can enjoy some good times! But why is this happening?
Whilst remaining very grateful for this 250% increase in the usual price of Steem Dollars I feel a sense of concern too.
Wasn't the Steem Dollar designed to be pegged to the dollar?
Is something broken?
Will it affect the price of Steem?
Current Steem value is at $1.25, so perhaps it will???
But for how long will this be a positive thing?
Anyone receiving 50% of their payout in SBD will be enjoying this moment very much
But that doesn't help me in my quest to understand what is happening.
If you have any knowledge on why the SBD price continues to rise I would love to hear it.
SBD (and STEEM) was recently announced as being added to upbit (a Korean exchange). It created a lot of hype, and since SBD has a relatively small supply, the demand seems to have caused a pump. Since then there has just been a lot of speculation trading based on the high volume it created.
Normally (when SBD is around $1 USD), there is a large amount of new STEEM that gets generated each day via SBD conversions. Now that SBD is trading at a premium, most likely a lot less will be converted to STEEM, so this can have an indirect positive effect on the price of STEEM too.
I will add though, that even though it is nice 'free extra money' for SBD holders and users who get paid SBD via their blog posts, we do want SBD to be trading as close to 1 USD as much as possible. It's main value propitiation is that of a stable currency, so in the long-run, having it go way up and down on a regular basis is not good. We should enjoy it while it lasts, but the hope is that it will return and settle back around a dollar.
was your reverse converse proposal implemented? if not...why not???? if SBD had a stable peg it could oust Tether as a more secure dollar pegged asset. That would make Steem fly....
The why not part was covered in Steem white paper, by @dan larimer.
that issue should no longer apply since the recent hardforks as pointed out by @smooth
read the posts by @smooth in the @timcliff "reverse converse"proposal thread:
https://steemit.com/sbd/@timcliff/saving-sbd-proposal-to-restore-the-usd1-usd-usd1-sbd-peg
it's a shame that SBD wasn't fixed, with the Tether debacle this would have been its time to shine....but again proved unreliable as a pegged asset.
Not yet
Thank you Tim for providing the answer to this. Learned something there! Explains a lot.
Its getting pumped hard by pump and dump groups
I have zero answers for you... but maybe it's just on the Bittrex exchange that it's this price...
On LiveCoinWatch Steem has risen from $1.10 to $1.26 (12% movement) and SBD is still $3.64 (0% movement).
On CoinMarketCap SBD is $2.41 USD with a 53.93% rise. Very confusing.
Sadly I have my payout in SP....of course, get some in the form of steem dollars but it isnt much.
I cashed in a bit last night at $1.90 and turned it into SP. Oh well.
Cant fret about stuff like that...just keep going.
Yeah, so much for SBD being a dollar.
Are you following American politics much? There is some crazy shit going on. I suspect it is related.
One effect this could have is to make voting bots less attractive. Why pay to get a 10% increase in your vote when you could just convert and get a 100% increase in SP. With SBD theoretically still being pegged to $1 USD.
It likely will get back there eventually.
makes me wonder too. thought that SBD is pegged to the dollar.
SBD (and STEEM) was recently announced as being added to upbit (a Korean exchange). It created a lot of hype, and since SBD has a relatively small supply, the demand seems to have caused a pump. Since then there has just been a lot of speculation trading based on the high volume it created.
Normally (when SBD is around $1 USD), there is a large amount of new STEEM that gets generated each day via SBD conversions. Now that SBD is trading at a premium, most likely a lot less will be converted to STEEM, so this can have an indirect positive effect on the price of STEEM too.