You are viewing a single comment's thread from:
RE: STEEM: Ask It And I Will Try To Answer It.....Let's Hear What Is On Your Minds
I had to ask why not keep the sbd price a little high. Why have they kept it at around 1USD.(though the prices are high now until corrected)
The thing is that Steem doesn't really have any control over the price elsewhere. As I understand it, the one dollar peg is a guarantee that it won't drop below one dollar.
If SBD is listed elsewhere and people push the price up, steem can do nothing about it.
They could peg it there on the internal market but that would result in more SBD leaving the system.
Eventually, the price will probably stabilize and return to the peg. But this won't happen until the new money flooding in figures out that Vests are where the value is.
Or maybe it won't. That is the nature of the free market. You have to let it find its own level and then try to figure out your play. Too much interference will only muck up the works.
That makes it clear. Thank you
Glad I could help.
Thanks again bro.
The idea of a pegged currency is for commerce. Businesses cannot price things accurately when a currency is bouncing all over the place.
If SBD is pegged at a dollar, then merchants know exactly what it is worth and can price accordingly. If the price is jumping up or down 15% in a morning, that really throws thing off kilter.
I am not sure there is a big move to push it back to $1....might be but I havent heard it discussed a ton.
Yeah...I understand what u explained here. My question was why 1 USD specifically. It might have been 9 USD as default. From 9 USD as fulcrum it may go up but never less than $9
USD is the most used currency on this planet. So it's easier for many people to think of SBD as just Dollars. 1 USD is specifically used purely for the ease.