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RE: Can SBD Be The New Tether? Which Witnesses are Against The Reverse Conversion Mechanism (Steem --> SBD)?
If steem starts considering sbd real value to reward posts, price will automatically fall. Plus it won't be an issue. All in all i don't see in having any value in having 2 coins. Just give out SP and liquid steem.
One is a currency the other is not. Without Sbd steem does not have money/currency. Just like having Facebook likes or apple stock is not money/currency. For any economic activity people would have to leave the ecosystem, while now they can stay within.
Think about the bounty app we have and now think about a bounty that runs for 3 months. This can’t effectively be done in steem, because the value will fluctuate too much. We would need a different stable currency, like usd. Conversely if Sbd were stable, people could exit usd and enter steem ecosystem. This is so important for the growth of the ecosystem.
That explanation makes sense. But only when you look at the value of cryptos against USD but i don't understand why we do that. For example, how many pesos you get for USD doesn't matter to an american. This will only matter if you go in that country or have imports with that country. But within US, this doesn't matter. In the same way, what the value of steem is in USD will only matter if steem moves out of steem ecosystem, otherwise 1 steem is just equal to 1 steem.
This is why i love economics, it made a simple thing like barter so confusing :)
Every country needs to trade with others and steem also interacts with the rest if the world. As such a currency and stability is crucial.