As the US dollar loses value (inflates), Steem and Steem Power appreciates against the dollar. But because the Steem Dollar is pegged to the US dollar, if the US dollar collapses, so would the Steem Dollar, which is why Dan is suggesting limits to the US dollar peg.
well as a British guy i can tell you after Brexit and seeing my so money devalue 20 per cent , maybe more ! I don't want my investment in crypto attached to anything, especially dollars as i think all that those that see far enough ahead are waiting for this monopoly money to crash like the Fed intended. We need to be isolated from this No? Why not resort more to a peg on Bitcoin and be 100 percent crypto ? I mean I think most people here have no faith in paper money, the reason for being here in the first place !! Its saddens me to see Steem connected to this horrible and clearly tired dollar, maybe better Norwegian kroner ?? ; - )
Steem dollar collapsing in value would not represent a stability risk, it would just make steem dollar less useful.
To me this seems an inherent risk in creating a token pegged to USD. If you don't want that, peg it to something else like gold or GDP or something, or simply make a stabler coin that isn't pegged to anything but is just less volatile. For example, without thinking through the implications (and the self-reference gives me pause), I think you could have a coin that would be pagged to the 12-month trailing average value of STEEM itself. That would be far less volatile than STEEM without involving an external reference asset.
I do like the gold idea, or perhaps a basket of precious metals. It could however increase SBD holdings as it would compete with SP as a hedge against dollar inflation, plus remain liquid. Not sure if that would be a problem for Steem long term.
Investing in SBD to avoid a US dollar collapse would be a bad move. Investing in Steem (esp SP) might be just fine.
I think the idea of a third long-term-store-of-value asset that is less volatile than STEEM, but not subject to inherit the problems of USD has some merit.
As the US dollar loses value (inflates), Steem and Steem Power appreciates against the dollar. But because the Steem Dollar is pegged to the US dollar, if the US dollar collapses, so would the Steem Dollar, which is why Dan is suggesting limits to the US dollar peg.
well as a British guy i can tell you after Brexit and seeing my so money devalue 20 per cent , maybe more ! I don't want my investment in crypto attached to anything, especially dollars as i think all that those that see far enough ahead are waiting for this monopoly money to crash like the Fed intended. We need to be isolated from this No? Why not resort more to a peg on Bitcoin and be 100 percent crypto ? I mean I think most people here have no faith in paper money, the reason for being here in the first place !! Its saddens me to see Steem connected to this horrible and clearly tired dollar, maybe better Norwegian kroner ?? ; - )
Steem dollar collapsing in value would not represent a stability risk, it would just make steem dollar less useful.
To me this seems an inherent risk in creating a token pegged to USD. If you don't want that, peg it to something else like gold or GDP or something, or simply make a stabler coin that isn't pegged to anything but is just less volatile. For example, without thinking through the implications (and the self-reference gives me pause), I think you could have a coin that would be pagged to the 12-month trailing average value of STEEM itself. That would be far less volatile than STEEM without involving an external reference asset.
I do like the gold idea, or perhaps a basket of precious metals. It could however increase SBD holdings as it would compete with SP as a hedge against dollar inflation, plus remain liquid. Not sure if that would be a problem for Steem long term.
Gold would be best in my opinion. I guess investing in steem to try to avoid the dollar collapse would be a bad move then. lol
Investing in SBD to avoid a US dollar collapse would be a bad move. Investing in Steem (esp SP) might be just fine.
I think the idea of a third long-term-store-of-value asset that is less volatile than STEEM, but not subject to inherit the problems of USD has some merit.
No. It grows!