My Take on What to do about SBD: Free Market All the Way!!!
Lots of people have the need for a stable currency. SBD was just that. But since the supply was so small, it got easily pumped by few and the herd of dumb money followed. Most of these people might not be even aware of what's the value of SBD is. I've seen many who are calling for an increase in the supply of SBD. I can understand where they are coming from. STEEM is volatile and SBD was supposed to be a trustworthy fully backed USD alternative.
(Image taken from @taskmaster4450)
Some people needs to see the price back at the actual value. As a Free Market advocate I'm opposed to doing anything regarding the situation. 1 SBD can be converted into 1 USD worth STEEM. It's much like the original USD which was a claim on 1/20th of an ounce of Gold. If the market is willing to pay more, Let it pay more. There is no Aggression happening.It's not breaking apart steemit or STEEM. It's actually good for the people who had few SBD in their accounts. It will even lead many people to convert their SBD into STEEM Power making them even more invested in the platform.
All you need to understand is that SBD only worths 1 USD at the end of the day. People in Valenzuela pay massive premiums for USD. People in Zimbabwe are buying BTC at almost 50% higher prices. There really is no harm done in these activities. 1 SBD is still just 1 USD. Some people are just overpaying for it.
Market will take care of things as long as NAP(Non-Aggression Principle) is upheld. Just change the way you look at the world. Price and value are different things. The worth of SBD is as still what it used to be. None of that has changed. The scenario isn't any different from USDT going for $1.01
It happens. On SBD it was just a bigger happening.
Are you saying then... it is totally ok that SBD Is being currently paid at $10 or more? i have heard lots of people lately saying that it is bad for the Steemit ecosystem and that in the long run it will blow everything.
Because i am a newbie myself, both as a Steemian and as a crypto currency user / invester i have no idea whether this people are right or not... as a first look, to me it seems great that SBD is $10 or more each. Because well, you would be making more money from each post. Meaning more rewards from writing and creating.
For instance, a couple days back when SBD was $1 , your post ( this one right here , currently $4.43 SBD) would be earning like this : When doing the 50- 50, and deducting the 25% off for curation, would leave you with around 1.66 SBD to either cash out if you wanted to or to use to buy steem and power up (also if you wanted to.). But lets say you are a Venezuelan , actually relying on Steemit and what you earn in it to make a better living for yourself and your family. Since the situation is so bad right now and on your 9 to 5 job only makes you $8 a month!
So yeah, you definitely would want to cash out what you are earning.. so, this post is paying you 1.66 SBD, at $1 , or maybe $1 and some cents .. so... being optimistic they are actually giving you $2UDS!! for writing about stuff you like or care about! . that is awesome!!
But now... today for example, the SBD is no longer $1 and some cents.. right now as i write this posts .. it is worth $11.13 !!! meaning that... when you cash out your 1.66 SBD you are being actually paid $18.47 usd!!! how AWESOME is that!! and that is just one post!! this post!! i bet you have posts that are worth way more than that!! isn't that the dream? specially when you are in Venezuela ( i am not, but many Steemians are)
At least that's how i used to look at things.. but now so many people is saying is a bad thing, i don't know what to think anymore.. since i have no idea how block chains work and how crypto actually work and how Steemit works.. i just know what I've been able to learn in 1 month and 1 week that i have been a part of Steemit.
So.. tell me. Is it good or is it bad? will it hurt us in the long run or will it be beneficial in the long run as it is short term? God i am confused! haha!
Thanks for making a long reply. The easiest answer is : 1 USD bill is worth more than the face value in Venezuela. Is that premium Bad? Nope. It's neutral. It's set by the market. If some arbitrary entity like a Gov or a bunch of devs set the price, It's one of the worst things that could happen.
But the current scenario is simply the market paying a premium for SBD which always worth exactly 1 USD. If the price exceed the value, it'll eventually stabilize naturally. Think about the value of water during a crisis. The price hike is a market force. Just let it be. That's the spirit of Laissez-faire which is French for "let do".
I am an economics noob so not making any comments - but good to see that the Dan says the same things in the video and he is an authority in the crypto-currency scene and blockchain.
https://mises.org is the best online resource to learn economics and it's free. You could also read Human Action by Ludwig von Mises and The Law by Frédéric Bastiat. They are the best places to study the fundamentals. Start with some quotes on goodreads.com You'll learn pretty fast.
https://mises.org is the best online resource to learn economics and it's free. You could also read Human Action by Ludwig von Mises and The Law by Frédéric Bastiat. They are the best places to study the fundamentals. Start with some quotes on goodreads.com You'll learn pretty fast.
I'm relatively new to Steemit and haven't looked into the relationship between STEEM and SBD. Thanks for the insight and also all the other good articles that you Resteem.
You are welcome :-)
I like that SBD doesn't have a ceiling. I feel like it makes the potential for actually making money much more impressive then if it was just tied down to 1 USD per SBD.
And none of it is forced. It's pure free market doing what it does best: Getting stuff done and making the world a better place.
maybe so many people were the smae about BTC and ETH and you can see whats hapening now. I don't know a lot about crypto currency but I think that none expect BTC will arive to the prices when its starts in 2008. thanks fr sharing this infromation with us.
"If the market is willing to pay more, Let it pay more."
Yes, yes, I wholeheartedly agree :-)))
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