RE: Can SBD Be The New Tether? Which Witnesses are Against The Reverse Conversion Mechanism (Steem --> SBD)?
I am of the opinion that “stablecoins” are a stop gap measure between fiat and full crypto adoption. I consider them the laserdisk of the finance world; they will serve a purpose in the transistion from VHS to DVD but will lose all relevance once DVD is the standard. Stablecoins are way to make people unsure about crypto willing to dip their toes in the water. If you want to stay in cash, then stay in cash. If you want to be in crypto, be in crypto. If you want safety, diversify your portfolio between cash, crypto, stocks, bonds, securities, mutual funds, gold and silver. The best way to safe guard your money is diversification. So my suggestion is this; why not eliminate SBD altogether and use Steem as the currency of exchange instead? You can stake your Steem as you do now in the manner of SteemPower or keep it liquid. Convince me why this would or wouldn’t work below. Thanks for the post @xyzashu!
Stablecoins allow a real currency and thus real economic activity. Think about a person that uses steem to earn money. It is very valuable to have these earnings be stable and not have to sell them right away.
This in turn is good for steem as people can now stay in the ecosystem and do not have to exit it to manage their risk. This is sooooooooo important.
But if you are a hodler you are looking for long term gains than keeping steem no matter the price is the point because you expect future gains. Also hodling because you believe in the project is irrespective of price as well. And if the point of a stablecoin is to hold value to the dollar as a long term safeguard, then why isn’t steempower based on SBD not steem? Not to mention that the value of a dollar fluctuates compared to other currencies and precious metals.
I had not thought about SBD keeping people in the ecosystem, but then why doesn’t every crypto have a stablecoin alternative of its own then? How about LiteDollar or BitDollar and the like? I would asssume that Satoshi and Charlie would prefer to keep people in their currencies’ ecosystem as well.
Maybe I don’t have enough or earn enough from steem yet to see the need for sbd being pegged to the dollar; I only see it as a means of attaining steem and steempower and dont keep any of it around for any length if time. Thanks for the response @knircky, I enjoy a good conversation!
I agree with you for stablecoins based on fiat. But you can make stablecoins based on real assets. Like gold, or even grain prices. This has huge applications. If you know you need to feed yourself for 20 years when you are old, its great to save in "grain-coin". You are guaranteed to have bread in retirement independent of grain price fluctuations.
Steem blockchain already has this provision, SBD can be backed with any asset instead of USD. It depends on the Witnesses' consensus.
This concept makes more sense to me; fiat is worthless inherently because it is a representation of debt, not worth. Having a coin pegged to a physical asset such as gold, silver or as you mentioned, grain would be much more stable for the long haul I would think and be a better way to store value. You could theoretically define the worth of the backing asset in anyway you see fit as well. Why not have gold/btc, gold/eth, silver/btc, silver/eth, grain/btc or grain/eth? I think this idea has some real legs! I like it @frdem3dot0!
This x 100 ..... no need for two cryptos on here.