Nice one @lukestokea this piece was quite informative. However I will be happy if you or anyone can explain briefly what causes the price of SBD to decrease while Steem increases.
I'm just a fellow who loves steemit and wants to understand how the crypto works.
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If SBD is ever trading above $1, it's over-priced. There's a smart contract available to convert SBD into STEEM at 1 USD value, but there's no similar contract to convert the opposite direction. The peg is broken, so speculators play with it and bid up the price, even though more SBD are printed every day at an inflated price. If you want to learn more on that, check out this post.
I took the time to read the post in that link and I must say, it answered every question I had. Thanks a lot @lukestokes :)