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RE: So why do I get Steem Power and NO SBD ?
Right now Steem Dollar payouts are disabled due to the internal economics of the system - i.e. when the amount of Steem Dollars reach a certain point (10% of Steem) - new Steem Dollars stop being created. If you want to get Steem Dollars you will have to buy them using Steem, Bitcoin or some other currency.
OH I thought they just converted 1% of SBD into SP ... So they did not do that ? they just shut off SBD; lol are we losing any website rewards due to these changes? lol just wondering if I am missing any free gold lol : )
Thank you so much for the explanation, appreciated ; )
No problem. No you don't lose anything you get exactly the same amount just in Steem instead of SBD. Steem Dollars are just basically like a note that says you own 1 dollar worth of Steem (like a Store Card).
(It is similar to a promissory note and I believe is more similar to how paper currencies operated when they were first created when they entitled you to a pound of silver e.g. the original pound sterling note worked like this.)
The problem is if there is too much held in Steem Dollars and the price of Steem is falling then at some future date there may not be enough Steem to redeem them against. That could be catastrophic for the Steem economy so the 10% limit exists to ensure that the "debt" represented by SBD does not get out of hand by continually printing more SBD.
That is my understanding of it I'm not an economist though.
Thank you so much, I thought one SBD was in theory equal to one US$ not one Steem. Appreciate your assistance !!!
Not quite it is one US dollar's worth (approximately) of Steem at whatever time you redeem it but the actual exact exchange rate does vary a little and is set by the witnesses who create a price feed. If it is was worth one Steem there would be no point in it existing.