Is there anything positive about SBD being on a par with USD?
SBD (Steem Backed Dollars) are getting very close to parity with the USD, they are at this moment Sunday 01:03 UTC at $1.58, Steem is at this moment at $2.16 a ratio of close to 1.4-1, better said if I change my SBD to Steem I will get about Steem 0.72.
I think that is not too good for authors, despite what I have read and been told by a lot of people who somehow are rooting for SBD to reach parity with the USD. Just think of it, if this goes on and with SBD at a par with the USD and Steem goes to say $5.00 you would be getting 0.2 Steem per SBD. The only thing this would be good for is for people leaving Steemit in droves because they won't be making any money at all.
Let's see int this case how it comes out. You get a payout for $12.00, 25% goes to curation, so you would get (as far as I know) $4.50 in SBD and $0.90 in Steem. SBD exchanged for Steem would get you $0.90, so this payout would be Steem 1.8 (exactly $9.00).
But if SBD is at $2.00 and Steem is at $5.00 what happens. again you get $4.50 SBD and $0.90 Steem, but that SBD is now worth $9.00 better said 1.8 Steem plus 0.90 Steem for a total of 2.7 Steem. So you actually lose if SBD is low, and the parity is not looking so good now.
So I really don't see why so many people are so keen on SBD achieving parity with the USD (a currency a lot of people on Steemit want to have a bad end and which is definitely losing value every day). Could it be that certain people don't want people to make too much money on Steemit? Which is fair enough a wish is a wish even if I can't see anything positive coming out of it. Mainly it just drives your ability to make money from writing downward. It is like taking a pay cut, but here there is no other reason that I know of than to make a few people happy because this is what they want.
The only way this could have a positive aspect is if Steem were to go well below a dollar value, and the negatives of that far outweigh any positive outcome. Or could it be that I have my math wrong?
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