Pegging the SBD at $1USD: When and what we may expect.
The discussion has been about the SBD and how it should or shouldn't be pegged. If you are on Planet Steem, then you will understand what it is I am talking about and if you have no idea, then please you just need to read these articles by these witnesses to understand the debate and see if you can follow the story.
@Lukestoke's Should SBD Be a Pegged Asset? If So, When Should We Peg It?
Witness Discussion – SBD price and reverse peg
Are you done reading? Did you see something that makes you stand for or against???
Well, I think we really should think about this as from all indications, the SBD is not supposed to be this high and taking a line from the Steemit Whitepaper
Steem Dollars (SBD)
Stability is an important feature of successful global economies. Without stability, individuals across the world could not have low cognitive costs while engaging in commerce and savings. Because stability is an important feature of successful economies, Steem Dollars were designed as an attempt to bring stability to the world of cryptocurrency and to the individuals who use the Steem network.
..and also
Steem Dollars are created by a mechanism similar to convertible notes, which are often used to fund startups. In the startup world, convertible notes are short-term debt instruments that can be converted to ownership at a rate determined in the future, typically during a future funding round. A blockchain based token can be viewed as ownership in the community whereas a convertible note can be viewed as a debt denominated in any other commodity or currency. The terms of the convertible note allow the holder to convert to the backing token with a minimum notice at the fair market price of the token. Creating token-convertible-dollars enables blockchains to grow their network effect while maximizing the return for token holders.
- from @Lukestokes' blog.
So can you now see why the call for the pegging of the SBD may be in order?
Although these traders are having a field day making good turnovers and also Steeemians cashing out big time, we also need to be mindful of the harm (if any) it may be causing to the Steem Blcokchain and setup.
Let me know your thoughts in the comment section.
Should the SBD be pegged, if yes, to how much and when?
Honestly, I think that we should maintain the mainstream as it concerned steem blockchain, even though I’m not a crypto guru but any decision we take about pegging of Sbd, we should consider it’s effect on steem blockchain.
This is good. @kingst
This is your humble friend and follower @maxdevalue.
I agree, whatever we do should be for the overall good of the Steem Blockchain.
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waw good info ni for us all. hope can share always. if there is a chance visit to my block ea @ ahmadrozam
waw good info ni for us all. hope can share always. if there is a chance visit to my block ea @ ahmadrozam
A good amount of people would probably disagree on any effort to peg down SBD. That's because a lot of people are earning a significant amount of money trading with SBD rather than STEEM. Judging from the price of SBD and STEEM these past weeks, we can deduce that it's almost impossible to bring down the price of SBD unless all whales agree, which is probably impossible. Just my two cents. Thanks for the interesting article.
Thank you for your contribution and i think you have a point there. pegging the SBD which has become really lucrative for trading may be near impossible unless all the whales agree and I fear that may not happen. Interests differs.
Either SBD should be pegged to equal 1 USD or we should get rid of SBD altogether and just use STEEM. There's really no point in having two different volatile currencies on this platform.
That is exactly the argument, it will be unhealthy to have 2 volatile currencies on one platform.
People who hold a lot of steem can get paid in SBD by renting it out, this is their motivation for sitting on lots of illiquid STEEM. If the payouts drop then they will dump their STEEM and look for yield elsewhere. in this scenario the high SBD is supporting the higher STEEM price. Drop SBD and so STEEM will drop also. Perhaps lower steem allows more users to get in, but it does not incentivise them to stay or hold. Then again I am sure I do not have the complete picture straight here either.
You are right, we are not all sure what to expect, but i like your analysis here.
New here but it's Fun here. Thanks to steemit
I actually prefer the two currency system. The other as a quick fund system and the major as an asset. It helps people make actual funds to solve current issues while also making a long term saving at the same time.
Pegging SBD will cause a disturbance in the force (although it will settle in the long run but it will make a complete turn around). It's gonna be helpful to the blockchain though as focus switches to just one currency.
Anyways, to get the sun one must prepare for rain
Hello @kingst
I would like to add an economic view on the discussion, based on fiat currency economics. I think it is a needed perspective, since we are talking about how Steem economics should works. Could you take a look?
https://steemit.com/witness-category/@phgnomo/sbd-usd-peg-taking-exemples-from-the-real-world-economics