Well, there is a 10% APR interest (current) on SBD. I don't think that justified the higher rates we've seen on the markets. In fact, I think 10% APR would indicate a lower trading value than approximately 1 USD / bitcoin.
It could be the case that traders speculated on Poloniex and Bittrex do not understand that this is a pegged currency and that the premium prices (at least in my opinion) are unjustified. If they do not realize / understand these mechanics, then the current market valuation makes sense.
I can't see any other reason for it otherwise. Naturally, people will want to move out of SBD to pay for bills, lock in gains, etc. With the total amount of SBD that is created per day, I would expect that these prices should reach parity much closer.
However, it is important to note that there is no arbitrage opportunity, or nearly none, in buying sbd or steem off an external market, selling on the internal exchange for the other token, and then selling the new token on the external exchange.
The very same remarks and compliments I just expressed towards @clevecross
apply to this comment of yours, and I'm sure after posting this reply and looking
through your posts/comments I will maintain that stance and follow you as well,
always granting my endorsement where appropriate, and upvotes every chance I can.
Thank you for this comment, and thank you again for proving that there can be
much more to this entire platform than a literal #circlejerk of posts redundantly
stating nothing more than how great steemit it, just for the sake of money-mongering
by idiots spamming the very same content, for the very same goals.
My apologies for effectively all of this reply's content being off-topic, but there is never
too little time to honestly thank the damn few people on this site right now for doing
exactly what we all should be, and for the purpose and sake of furthering eachother's
understanding and/or knowledge, and not in the hopes of it reaping rewards for ourselves.
Signed,obfuscate-meVisiting my family and not reading responses deeply for interpretation. I hope I didn't hijack content of your post. Was not intent, just a thought at the time from an enthusiastic guy
I'm selling Steem Dollars for Steem on the internal market and then using it to power up!
@complexring Hey. I was thinking the same thing a couple days ago. Do you know how to calculate how many SBD's are being created? Also, does the price of SBD going up affect how many SBD's are rewarded to content creators?
Ok so let me get this straight...
If I buy steem with steam dollars, then sell it for steam dollars on an exchange, I can come back here and buy more steem and rinse and repeat?
How does the proceas work exactly? I am going to check these exchanges now and run soem numbers. You rock for posting this intel!
Thank you for posting. QUESTION: should steemit let us steemers advertise using steem? Be sure to tell everyone you know to come vote here at: https://steemit.com/steemit/@kingtylervvs/if-steemit-ever-does-decide-to-advertise-there-is-only-1-way-it-could-work-in-my-opinion-debate
This is a democratic community decision.
Upvote the #steemengine for in house steemit poster ads!