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in #steem5 years ago

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It's another one of those days; yes, the ones where the crypto markets continue to fall. Specifically of interest if you're on this platform might be the prices of Steem and SBD.

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We started yesterday with the prices in the high $0.20s and are now in the low $0.20s. Some of that price change has been because of the lower price of Bitcoin, to which Steem trades. However, Steem has also fallen compared to Bitcoin, not just the dollar.

Speculating as to why the price continues to fall is just that, speculation. There hasn't been an immediate reaction to Steemit Inc's news from last week, at least not one that I can see. The price has just continued to drop. One reason could be that buyers are getting weary of an ever-dropping market and buyers aren't showing up. That's one explanation.

Something I find interesting is the rapid drop in SBD price over the last few days. From what I understand it's because SBD is no longer "pegged to the dollar." Although it hadn't been pegged for quite some time.

Correct me if I'm wrong, but my understanding is that until the market cap of SBD reached 10% of the market cap of Steem, SBD's value was in relation to the dollar, one dollar. However, when the market cap of SBD passed 10% of the market cap of Steem, it changed to be relative to the market cap of Steem.

Does that mean that the ratio stayed the same or the value of the debt stayed the same? I don't really see the distinction in valuing it based on the dollar or Steem. Maybe someone else can explain.

Also, could someone explain how rewards work now that SBD is relative to Steem, not $1? Does that mean there's no difference between 50/50 and 100% other than the former allows you to have 1/2 the amount as liquid?

Regardless, the lack of peg to $1 (which would make SBD a stable coin of sorts) means that there really isn't a reason for SBD to exist. That's just my opinion.

What's your opinion?


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@themanwithnoname

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The usefulness I can think for SBD now is simply as a "buffer" between markets.

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Howdy sir Bondie! I don't understand any of it and don't pay much attention to the price but if it goes to 10 cents I might buy some!

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