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RE: STEEM Dollars (SBD): Terminal End of Correction Approaching
Why not just invest in STEEM? Why do we need two speculative tokens in both SBD and STEEM?
Do you see long-term value in having a built-in stable token within the STEEM ecosystem? The blockchain will just keep printing SBD until this correction happens to bring SBD closer to $1 USD.
I know the witnesses were talking about slowly bringing sbd price down and pegging it to $1, has there been any action on this idea?
I do see long term value in a stable coin for the steem ecosystem, but as long as there are incentives to speculate, people will speculate. If we want a stable token it would be best for the witnesses to come to consensus, announce the change, and make the change on the next hardfork hopefully before the next price rocket.
There is almost unanimous consensus between the top 20 witnesses but, at the same time, we recognize many do not want to see their inflated author rewards to go away. For the most part, it seems witnesses are not willing to implement a reverse conversion unless the price drops closer to $1. We don't want to be the "bad guys" who turned off the SBD faucet, even if we're thinking about the long-term benefits of the entire ecosystem (including increases author rewards due to increased value of STEEM and the resulting rewards pool). At this point, unless more people demand action from the witnesses, I don't know that much will be done.
In that case unless bitcoin and everything else takes another dive to a lower low, the days of sbd being anywhere near $1 are probably over.
@lukestokes
I understand the need for a stable asset, but the outside market is not yet ready to accept a 1$ SBD. Most Traders, without any understanding of STEEM and why SBD is worth 1$ - will come to the conclusion that it's undervalued.
I wouldn't be surprised if even if the witnesses try and suppress SBD to $1; it won't behave accordingly. Why? Sentiment drives the price....not the Witnesses.
Has sentiment driven the price below $1 USD?
Sentiment is great, but it can not effectively work against smart contract protocols. If a reverse conversion was implemented, SBD would be printed in an arbitrage fashion to keep the peg. I can't imagine any amount of sentiment changing that.
The whitepaper talks about why there was no reverse conversion. The $1 peg is nothing but make believe at this point...
I find the whitepaper's argument inadequate. It may have been true during the launch, but with the liquidity we have in STEEM now, I don't think it's a valid concern, personally.
But yes, I agree with you, the $1 is so broken as to be just make believe (unless it goes below $1).
FACT: The eye makes movements 50 times every second.