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RE: The World of Cryptocurrency - Segwit 2X

in #bitcoin7 years ago

So it's not a growth investment crypto wise?
I'm better to move steem into BTC or LTC or XRP or something if I want capital growth?

What happens if / when Steem goes from 400K to say 4M or 40M users?
What do you think might happen to Steem values vs US$

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It's not a growth investment mate. Steem Dollars are pegged to the US$ because they're basically an "I owe you $1" contract. So it doesn't matter how many there are, they will also be worth about US$1. The only reason the price varies at all is because some people want their US$s faster than others.
If you still don't understand, this might help:


If you want capital growth you are definitely better offer with other coins. But if you already have at least €50 worth of BTC and want some easy capital growth let me know and I'll post a link for you.

Steem Dollars and Steem are two different coins. Steem Dollars being pegged to $1 helps when Steem drops below $1.

Thanks for the video, great explanation.
So selling my SBD, for "steem" I'm not 100% clear on, but I gather this is an intermediate step/ way to trade for BTC or XRP or increase my voting/earning abilities with steem power etc.

But I have an other Q. if I can.

At the moment US$ relative to say gold (just as a benchmark) is worth $X / oz

  • If the 'value' of the US$ was to tumble on the open market (lets say a petro $ event of some sort)
    and now hyper inflation hits the USA - due to the USA massive debts

So a loaf of bread in the USA now costs US $1000 instead of current $1

On the open market my 1SBD = 1 US$ are worth a whole lot more, (eg x1000 more!) correct?

So what I (as a steemian) want is for the US $ to crash & become worthless on the world market, and I'd be rich.

So in some ways SBD is a 'hedge' against a failing US dollar.

Did I explain that OK? am I correct?

You're welcome mate. You're welcome to ask as many questions as you like but I'm no expert either. However SBDs are in now way a failsafe against US$ falling. Quite the opposite. SBD relies upon the US$ being strong in order to be worth anything.

If the US$ were to rapidly tumble then the relative value of SBD would tumble right along with it. So if a loaf of bread costs US$1000 then you'll need 1000SBD to buy a loaf of bread. Then rise and fall together. So if the US$ goes skydiving, then SBD goes tandom, which means we'd all be broke. Get it?

If you're interested, you can trade both steem and steem dollars for a variety of cryptocurrencies on Poloniex. I'd say increasing your voting/earning abilities is really the only point in having steem power.

Also, if you have any BTC you want invested by pro's who'll grow it for you at a tiny fee, may I recommend this mob:
https://mra.usitech-int.com/
(Don't forget to bookmark it.)

Thanks for thoughts re US$ + SBD being that co-joined.
But I do wonder about Steem vs SBD are they just as co-joined?
ie can steem become 'valuable' while SBD is not?
if so I'm better hodl steem (or SP) rather than SBD?

If I'm wrong & all are tied to US$ on an almost parity basis, then I'm concerned.
ie My gut is telling me a 1929 rerun is just around the corner
(in fact worse that '29 due to computer trading speeds)

I looked at poloniex, but USA only ATM I think and they want verification anyhow.
I don't have any crypto to trade ATM so it can wait, in fact
I'll wait until more crypto-zombies are awoken & I'll get an anon trading account.

I hate gov / banks / exchanges having private info.
Nothing to hide, but big brother privacy has value to me.

Thanks for link, book marked.