One of my friend bought SBD instead of steem power when he made a post in which he predicted analyze that sbd price will be upto 40 $ in next few months. He bought SBD when price was around 11 $.
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One of my friend bought SBD instead of steem power when he made a post in which he predicted analyze that sbd price will be upto 40 $ in next few months. He bought SBD when price was around 11 $.
I think I even commented on that post. I tried to tell some people (may have been them) that the SBD was designed to be pegged to the US Dollar. It had been off peg before and steps were taken to try to get it back on peg. So betting on the price of SBD is dangerous as you never know when they might artificially attempt to drive it back towards $1/SBD.
So yeah, that was bad advice IMO.
just out of curiosity - what was done to get it back on peg the first time, and was anything done this time around to bring it back or was it just market forces?
Well apparently when it goes OVER PEG it is difficult to get it on peg. Which might be why it hasn't returned to $1.
When it is under $1 the witnesses can control some rates that help get it back up there, and they encourage people using the PROMOTE feature which any SBD you spend to get a post on the PROMOTED tab is burned/destroyed so it takes SBD out of circulation and thus increases overall value.
Though I do remember them not being sure what to do when it wen off peg... and then it only hit around $2/SBD. It eventually did go back to $1. Though this last time it has never really returned to close to peg. It even hit $10-$11 range briefly.
I just keep in mind it is supposed to be pegged. So if they haven't given up on trying to force it to peg it is something worth keeping in mind when treating it like other cryptos.
Steem on the other hand should act like other cryptos.
Also I don't know if they are bothering with the peg or not anymore. No clue.
yeah - i joined around the time where it was $11. Was definitely a good opportunity to build up your SP, though I probably only caught the tail end of that, as I was still figuring out the platform.
Given that SBD is tradable externally like any other cryptocurrency, the only way to peg it would be to back it by USD, or to have a system that holds enough SBD to buy/sell accordingly and keep bringing it back to 1.
I haven't read the white paper so i'm not sure what the pegging strategy, but it is somewhat of a concern, to have this grey area and nobody knows whether it will be pegged again or not..
They make more/increase supply to drive the cost down. They do this by paying you more than 50% in SBD. I think at one point, they were giving like 85%in SBD which made it very lucrative during that time.
That's very interesting - I never heard that before - I only joined in November and it's been 50% that whole time.
That would contribute towards controlling the flow of SBD - but as long as this remains a manual fixed process, it's always going to lag behind when deciding whether it should be implemented or not.
If the desire is to truly fix SBD to $1USD, they would need to find a way to automate this and make it a floating value.
This I assume would also impact on the supply and cost of STEEM though, would it not?
I may be wrong about that. I know I read it somewhere, but I never really did the math. Currently, when I check in the history of paid posts, I haven't been able to find an instance of that. I swear I saw it posted in a few places and it certainly seemed that way. I even thought I saw @themarkymark post about it.
Ouch. I remember the SBD post well. Roundhere and I laughed about it.