RE: Well, there it is.

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RE: Well, there it is.

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chuckyfucky (62)in #steem • 6 years ago (edited)

Well marky, obviously all of us Steem/SBD holders want to see the price of SBD go up, who doesnt like money? But the truth is that the best thing that can happen to SBD is that it gets pegged 1-1 to usd. Great example using steemmonsters, but let me put a better one :D

Lets say i sell tshirts, i want to sell a shirt to marky that says "MarkyMark Fan Club" at 10Bucks flat. You send me 10 SBD (unpegged 1-1) and it takes you 7 days to recieve the shirt cuz im 10000 miles away, during those 7 days SBD moves to 2 bucks a pop. You just paid 20 bucks for a 10 dolar shirt.
#PegSBDtoUSD

-Cheers

6 years ago in #steem by chuckyfucky (62)

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sorin.cristescu (71) 6 years ago

The exception to that is when:

when your earnings are denominated in SBD and
you are dealing in items which are exclusive to the steem blockchain, such as steemmonsters.

Indeed when buying something like steemmonsters, I have the choice of either:

buying with fiat at a stable price by
a. sending some euros to Bitstamp or Kraken
b. buying BTC there
c. sending the BTC to Binance or Bittrex
d. exchange BTC to STEEM there
e. send STEEM to steemit
f. use STEEM directly to buy monsters through steemconnect
OR
use my regular SBD gains from posting to buy monsters directly with one click knowing that
a. SBD is supposed to be pegged so even if exceptionally it can go for a time far above, it won't
normally "moon" to make my cry for having spent it
b. I'm continuously earning more SBD thus over a long period the SBD spent on monsters will be a
small proportion of my holdings

I believe the SBD adds indeed complexity but if done right it adds stability and value to the platform. Rather than making them disappear, it would be better if witnesses got more tools to try and maintain the peg

$0.10

6 votes

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chuckyfucky (62) 6 years ago

Imposible to peg something like SBD to a FIAT value unless there is some smart contract available with collateral, so SBD would in turn need to be created as a smart contract, a great example is the pegged USD asset on the Bitshares exchange (Bit.usd)

Which uses a smart contract and holds BTS as collateral to maintan the price with the slightest of variations being it 1usd-1.05/0.95 bit.usd spread at most.

$0.00

1 vote

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sorin.cristescu (71) 6 years ago

I agree perfect pegs are almost impossible to achieve - but one can add efficient mechanism to try to approach a peg as well as possible. I reckon the current mechanism for pegging SBD while far from perfect is a good start. It pegs pretty well on the downside. Add some automatic mechanism for SBD emmission when the price increases (to peg on the upside) and see how it goes.
It will already increase the velocity of SBD because people will hoard less (in the hope that it shoots for $10 again) and will spend it more freely.
That is the objective - to have SBD as a currency circulating inside the steem blockchain economy, with a value that people can relate to (~$1). And with "jobs" allowing people to earn SBD and "goods" such as steemmonsters allowing people to spend the earned SBD