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RE: At What Price STEEM Will Be A Top 20 Cryptocurrency?
It's great seeing the recent rise in Steem prices to, IMHO, where they should be. We actually have a working project with a community as opposed to say something like Cardano which don't get me wrong don't have any huge issue with it but it's not even a working project.
I'm still trying to wrap my head around the interaction between SBD and Steem despite having been involved on here for a while. What's the overall strategy or are there arbitrage opportunities between the two? Basically shoudl I convert SBD to Steem and if so when is the ideal time in regards to the prices?
If SBD is out of peg (which is now for over a month) yes, there are. If these "arbitrage opportunities" are continuing for a while, the price can be hurt really bad. So witnesses - including me - are adjusting their price feed bias, in order for more SBD to be printed. The logic behind this move is: the bigger the supply of something, the lower the price. When the SBD pump started, the total supply of SBD was around 3.5 million, now is around 4.5 million. I would say that this measure of witnesses is working - not as well as we would like it to work, but it's working.
The fundamental thing you need to understand about SBD is that it's not "hard pegged" to the USD (there is no USD kept in cold storage, "mirroring" the SBD supply 1 to 1), but it's "soft pegged" to "$1 worth of STEEM". It's a debt instrument.
Is there a concrete reason why SBD has gone so high, ie what makes it go so high when ideally it's supposed to be near $1?
When you talk about voting that goes way over my head. You have any good link where I can read up about this more?
Thanks!!!