Can't Use Steem Dollars For Store
I'm finishing a site to sell some fashion and beach items and had planned to use steem dollars as one of the currencies I accept (global custies!). In the last three days, I see that steem dollars were highest at 86 cents not one dollar. Woah - 86 cents was highest value!!! I haven't seen steem dollars being equal to a dollar in a very long time. I don't think I'll accept these in my store 'cuz customers will push back on this cuz they can't keep their money in steem dollars and feel confident that it will hold its value. Asking people to convert their currency pre-purchase hasn't worked for me when I tested with bitcoin.
I looked for another currency to use for people who use these digital currencies and it looks like there's a currency called tether that's one dollar. Any of you noticed steem dollars way below the dollar?
Things are slowly evolving, for example recent version of eSteem allows you to use with Blockpay payment terminals, in future it will have NFC payments in, we will get there... ;) And the more services we have for users more stable it will get
Hopefully it is a temporary situation. The current price is a result of the huge July price spike where the price of STEEM was inflated beyond what it was arguably worth. While it was a good thing to attract attention to the project and help fund a lot of valuable projects that will hopefully benefit the project in the long term - it has left us with a short term problem of paying for all the rewards that were handed out during the spike.
The witnesses and devs are looking into a lot of potential solutions, and there are a lot of things we now know to do differently if another similar bubble starts to form in the future.
The best advice I can give is to hang tight. Hopefully we can all address the situation and get SBD back to a stable USD peg before the site transitions out of beta.
Are you saying there's a funding issue?
During the spike, the system rewarded users with SBD, which is essentially debt. In order to get paid "real money", users either need to convert their SBD to STEEM, then sell their STEEM for BTC, or sell their SBD for BTC. Both put downward pressure on the price of SBD/STEEM. If there is more downward pressure (supply) than upward pressure (demand) then the price will go down.
"Normally" the system is supposed to balance such that the price of SBD remains close to 1 USD worth of STEEM. The problem is that the system created too much SBD during the spike that it is having a hard time holding that balance because there is just too much SBD supply.
They have taken some steps to reduce the SBD supply, but they are going to take time. (Doing it too quickly could crash the price.) We continue to look at other things that can be done too. For example right now I am buying up small amounts of SBD and converting at a loss to help reduce the supply.
Hello @ilovefashion. Yes hopefully the peg gets much stronger in the near future. BTW you can sell your fashion products on https://www.peerhub.com for Steem dollars! It's easy to post and you can just price it higher than normal for now...have a good day!
There's some people willing to by SBD for 0.95 now
https://steemit.com/steemit/@clayop/don-t-dump-your-steem-dollars-because-i-am-buying-up
According to coinmarketcap.com it's only 0.81$ right now, doesn't look so good...
Yeah it's really low!!! It feels more and more like steemit can't hold the value of its currencies like steem, steem power and now steem dollars.
You could offer a 'dynamic pricing' of steem dollars in your store. The problem is that if no one accepts SBD for their goods and services, then there is no use case for SBD, but people are only willing to accept SBD when the value is closer to the peg. Seems like we are stuck in a Catch-22, eh?
I think you'll find some additional customers from within the Steem community that you may not have had if you accept SBD.
Thanks for the comment!!! Nah, I don't feel that's a good idea. I think tether looks good for my store.