You are viewing a single comment's thread from:
RE: Something odd with STEEM/SBD
If it stays pegged 50cents below and STEEM drops back to its recent low then we are going to get the SBD Purge I wrote about a month or so back.
The Coming STEEM DOLLAR Purge : Why it Needs to Happen and How
Just read the link bugged - and needless to say I’m confused. You have your head around this way more than I do! How does the steem peg actually work (or how was it originally designed to work before it broke)? Does it have something to do with burning SBD and to balance supply and demand or am I way off?
I wrote another article which explains how SBDs are created and destroyed.
STEEM DOLLAR Will Fall To $1 USD : Here’s Why
Basically the peg is supposed to keep SBD valued at around $1 USD. As a stable crypto coin the idea is that it then would have some appeal for mainstream commerce as businesses would not need to be currency speculators to accept crypto payments. I'm still hanging out for that day I can buy a cup of coffee with SBD :)
Woah - there was a lot of info in that! I didn't read comments but I think I'm starting to get it. ( you're pretty smart bugged)
It makes sense that the SBD has pegged to the price of steem considering there is a free exchange. I don't imagine there is much of a demand for SBD? It's mostly used for bid bots... if we could buy coffee with it, the market would probably be more likely to correct itself ( I think).
I wonder if the 50cent difference Gohba mentioned is because of the difference between the buy and sell price on the steem market exchange?
I'm not sure. It's probably the Technical Analysts out there that are trading SBD in proportion / relative to STEEM and the internal market may be part of that dynamic.
Thanks for the kind words and engagement. I'll cut off my response so that I don't hijack @gohba.handcrafts thread with more of my wacky theories ;)
Feel free to wacky it up mate.
I reckon Gohba's cool with wacky 😊