There is a discussion going on at the moment whether the SBD (Steem blockchain dollar) should always be worth $1 worth of STEEM or not. here
Currently, with a STEEM price of $4, it's way more. Around 1.5 STEEM (or $6 USD).
If the peg would be enforced an SBD would be worth 0.25 STEEM. (or $1 USD).
The reason the price has gone up so much is that there is no upper limit to what an SBD can be worth. There is only an under limit.
To enforce the peg a reverse conversion is suggested.
Currently, you can convert SBD to STEEM (takes 3.5 days) but not the other way around!
4000 SBD will turn into 1000 STEEM (at current prices) for example. And clearly, this is a very bad deal!
With a reverse conversion, the peg can be enforced.
With a STEEM price of $4, you can then turn 1000 STEEM into 4000 SBD.
Basically, you can turn $4000 worth of STEEM into $24000 worth of SBD.
This will surely bring down the price of SBD until it's 1 dollar worth of STEEM.
But to do it now will be very disruptive in my opinion.
It's great for people that know, like you and me, but for the people on exchanges, it will be devastating. Basically, they would feel fucked by the STEEM blockchain when the price tanks.
Not great.
Don't get me wrong, in the long run, I am in favor of a stable SBD.
But currently, the high SBD is helping grow this platform with more content creation but more important, development.
I notice this myself now that my witness @blockbrothers can afford to pay an external Android dev with SBD (converted to euro) and also pay for 5 servers. Our Steemify server being one them.
To enforce this peg now would be a mistake. I would wait until STEEM price goes up and more SBD's are created automatically bringing down the price of SBD closer to the peg.
That would be the moment to implement this change.
Nondisruptive.
I talk about it more in my vlog
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I agree with all you said. Steemit knows an massive growth because of this, it would be very bad to take this away right now! all vote for the right witnesses!
How about this: You stay the fuck away from SBD and you create your own USD-pegged crypto currency? =)
Never change a running system
A high SBD price is totally healthy in my opinion.
Enforcing it back to 1 SBD would make a lot of people pretty angry. Me included.
Why should it be enforced? Just for the reason that it was supposed to be pegged to 1$?
Well. As you said @exyle - a high SBD price gives you a lot of oportunities (especially looking at blockbrothers) and I feel the same. So why should there be a limit to giving active steem-user more possibilites?
So I'm totally against forcing the peg. At least right now. We can see again in half a year or year, but until then ... let's have some fun.
Edit:
On the other hand - a 1$ peg gives many usecases where a stable currency is needed. Difficult ...
Yes. "I wrote in my diary 5 years ago that my goal was to make $1 Million Dollars. But now I have made $100 Million dollars. I wasn't supposed to make so much money... Let's throw the other $99 Million in the river - It solves the problem."
nice analogy, where is all that value going to go if it gets pegged. just seems like a burning of resources.
It's going to be destroyed, which was the point of my comment.
Its a mischaracterization of the problem though if SBD was pegged at $1 the value (or at least a lot of it) would shift over to the steem token so it's not like throwing away money, more like shifting to a new bank account
I bought a goose because I wanted eggs for breakfast. It laid a golden egg. I am returning the goose and egg to the farmer as it did not do what it was supposed to.
hello... i upvoted your blog and kindly upvote my blog as well...
Everyday this steem seems to be more and more run by some anarcho socialists! This is supposed to be decentraliced platform to avoid control, but yet they just try to act like some socialist-goverment deciding how much this must be worth. Stop with the fucking number crunching! why the hell someone must always decide what is the excact value of this or that. But I guess after all this place was made from just hate to goverment, other vice devs would have realized how this steem power thing eventually just turns this into another "elite" (whalesters = banksters) run economy. That day may not be yet, but it will come.
Thank you for saying this! It's exactly like you say: Fucking socialists wanting to control shit. Just lay off and let the free market run its course. Destroy the value of SBD? Why don't they throw their money in the river while they're at it? Fucking insanity...
Perhaps we can get the best of both worlds by waiting until SBD naturally returns to a valuation around $1 (if that ever happens) and then making an adjustment like this, so it has (in theory) no immediate impact.
On the other hand maybe Steem doesn't need an official internal pegged currency - an SMT, or even non steem token, might be a better way to cover that use case.
Take into account that if dollars goes to hyper-inflation, then it could be pain in the ass trying to get all your sbd out before it is worthless.
Hell no... Are you kidding me or are you out of your mind? What you are saying is you want to make everyone on Steemit poorer. No! SBD is, as I've said before, being traded as a regular token as we speak, i.e. free market forces are deciding its price based on voluntary interaction. You wanna peg BTC? Maybe we should peg Litecoin? Or maybe find a peg for NEO?
Because of the FREE MARKET'S VOLUNTARY choice to trade SBD in an OPEN, FREE MARKET environment, EVERYONE (you, me and every small Steemit user) is not much wealthier, i.e. the incentives are HUGE to come here right now and make projects, write articles, curate and comment. You're saying you want to take that away. Not only that, but you want to make it SIX TIMES LESS profitable to join Steemit.
Just stop it... I get that you're really comfortable in your own little bubble somewhere in Europe, but just stop this crap and let the free market trade whatever they want however they see fit.
Did you even read the post (or watch the vlog) or are you just blurting out some random opinion?
I did. It seems he's in favor of it... Just not now. Let's make everyone poorer... later?
Or maybe you know something I don't? Can you explain?
Well, he is not in favour of changing it, so I'm confused about your comments here. He might have to adjust that opinion in the future, but who knows what will happen tomorrow?
Anyway, maybe you should read the Steem whitepaper, it explains why the SBD even exists and the mechanics behind it.
Oh, I see! I must have misunderstood. Well, I mean, antibiotics did not come into existence to cure disease, right? So what something was "meant to" be for is not an argument for destroying an entire market of investors, traders and content creators. Only a crazy person would be in favor of destroying 600% of something's value.
I am in favor of this high price cause the system come up with it and it pushes every authors to write and contribute to steem value.
There were another post yesterday on a similar reply.
If steem valuation is within $10B, it will make sense to make sure SBD is truly pegged to the dollar.
Now let the steem grows accordingly.
Now it is a good time to use our voting system to keep steem flourish and stay a contender in the months to come.
Keep on steemin’
There are two cases. Keep the thing the way it was designed or change it as it not hard and fast rule that whatever you have designed in the past is correct or not changeable.
If SBD was designed to be always worth of $1 and steem to fluctuate then they should be kept that way. Reason is you have one currency which can be used by others/investors to manipulate while SBD will be kept the standard unit for payment dealing. This has long term effects.In the long run we will benefit from it when all the stores offline and online has started using SBD for the payment.
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When it comes about the author and post rewards scanerio, think it as when SBD was $1 worth. Then we all survived and we were happy with that. Even that was the difficult time because you had very small community and not a very big market cap. So you might be earning less money now if this happens but it will give rise to the usage of steem blockchain resulting in the marketing of steemit and attracting new users. So then you would be able to earn more by having more followers and taking your content to bigger audience. So if you want more reward then work on your quality and reach.
I agree with you. Dont destroy a working system. The increasing price of SBD is working to grow the platform with both development and content creation. That is only a good thing.
Correct. It only works as a way into Steemit for new users. There is 7 times more value to be earned here. Removing X7 of the economic incentives? NO! Insanity! Leave it alone!
How is this possible? Previously it was instant.
The convert option has been removed from the wallet. I know when Bianca did it by accident a couple of months ago it took days to convert and she got way less steem (SBD --> $1 worth of STEEM) than when she would have used the internal markets.
I am talking about the internal market.
I think that makes sense to me. I'd agree it would be harsh on those investing in sbd away from steemit too. There must [as you say] be more organic ways for this to happen and it may just be a temporary problem that will iron out as steem gains value. It flipped last week sometime [steem overtook sbd by cents], so we can see it's not particularly stable anyhow. Wait and watch would be my idea of a good action for now.
Interesting post. I believe this is a good think that SBD is so high. It is great for people who are producing the content. Dan Larimer also said that it is the market viewing SBD as the independent currency. No need to enforce anything, let the market decide the price.
Yup. Dan said exactly what I have repeated before: It's traded as any alt-coin. Why shouldn't we let it be traded as such? Maybe we should stive to make everyone 6 times POORER?
Yes, I mention that in my vlog. Current SBD price is awesome for content creators and developers indeed.
Smart Man !
I'd rather peg the value of SBD to gold or silver than to any fiat currency. Why peg to something that is always losing value and has the potential to go to 0 ? Gold, while it's price fluctuates, will never drop to 0 ! ...ever! I'm fundamentally against pegging SBD to value that can be printed out of existence; we already have that, they're called Dollars, Euros, Yuan, Rubble, Intis, Soles de Oro, Pesos, LBS, Bolivares etc. I have a bank note of 1 million Intis, and you can't buy toilet paper with it.
I agree, the USD has currently been trending down for awhile. Why should we be peg the SBD to an asset that is falling in value? What if crypto-currency is the future and (eventually) all fiat money becomes nearly worthless. I do understand the desire to have a stable value for the SBD though. This is not a simple problem to solve.
All fiat currencies will eventually drop to zero; this is mathematically inevitable. It may take 500 years or 500 days, but go down it will. Gold does not have this problem; there will always be someone willing to take Gold as payment. Besides, when governments have reserves, they hold gold, and that tells me everything I need to know about their fiat money. If governments don't have confidence in their own money as savings; why should I? ..or You? If we peg crypto to anything; peg it to something like Gold. Gold sucks as an investment but is a great reserve. Greetings!
I agree with you on this. I think that a peg right now would be way to disruptive and stunt the growth the the platform is experiencing. Hopefully, when they do do this, it will be at the best possible time to stabilize growth and keep it at a constant.
Abrupt changes are not a great idea anyways, I hope they won't screw up this growth period with such changes.
A lot of the witnesses are trying to inflate the supply of SBD by altering the the SBD/SP post rewards split. Even if you select 50/50 as your reward option, you are most likely receiving a 70/30 split due to the combined effort of several witnesses. This has probably helped lower the price to $6 from $15 a few weeks ago but we're not yet there. As long as SBD trades on external exchanges, we may experience SBD pumps.
I think it has more to do with the fact that the STEEM price went to $8 creating way more SBD's because the payouts went up a lot. Millions of new SBD's were created. This is why I believe that when STEEM goes up more in the future the SBD price will come down automatically and no need to force the peg right now.
Have you moved where you film? I miss the christmas tree :)
I changed the angle. The Christmas tree might be or not be still there :)
I think the high SBD price has done wonders for the community as a whole. It means that newbies who only earn a small amount on their posts are actually seeing a real return. I think they should abandon the peg and let the markets decide the price. As you say, investors on exchanges would be furious if something like that was done and the price then tanks which it would.
Lol, and you might see a million follow/unfollow notifications from me. I had a rubbish Internet connection and the screen was slow to load so I ended up pressing all the wrong bits to see this post!!
100% man!
Let market decides it future it will be cool to see where it will head towards but most likely it will go down
I fully agree with you.
If they interfere with the price of SBD, another worse problem would take place. Some devastative result could be brought in STEEMIT system
Free Markets should rule. As long as you aren't seeing manipulation to keeping the price high it should be allowed to stay this way.
If a reverse conversion is implemented there should be plenty of warning and there should be a limit on how much can be converted per day. This would avoid a complete crash of the market.
On the flip side if the inverse conversion is allowed I can trade 4000 steem for 24000SBD internally and then buy steem on the open market to then convert again. It actually would allow for a short term massive increase in holdings for those that have liquid steem. It would take some time before the markets evened out and in the mean time massive profits could be made.
I think the best course of action is to do nothing. There will be ton of unintended consequences. Equilibrium will be found if they just leave it alone. I totally agree right now, we have momentum, don't f*#k it up
Don't touch it, leave it alone. Hard forking this for non current use cases, absurd!
It will be a big mistake and dangerous if they implement it because all will go nuts here -me included. Let the free market reign and uphold our decentralised mindset. People are happy with the high cost of SBD because it makes members able to afford things -hope steemit inc will lsiten to the whole community and not just few because the success of this platorm depends on the community. Thanks and feel free to see my posts about steem and social media . Keep up the good work and thanks for sharing.
the reason for pegging SBD to USD isn't that good of reason, we can always show the USD equivalent on the side using some browser extension.
why should we let any other currency drag the value of SBD or steem down when it loses value?
nice post friend and i agree with your thoughts the peoples who are buying sbd now at exchanges i think won't know that SBD is just an internal currency and steem is the main currency and i hope peoples will start knowing about this fact and then whole momentum will be shifted back to steem, so forcing SBD to peg price instantly is a bad decision and it produce bad impact on trader's and yes it is far better that SBD price come down more conventional way, thanks for sharing your nice thoughts with us, Stay blessed
I dont see any reasom to make SBD always worth 1 dollar of steem.
@exyle I just say let the price of SBD go to whatever level it wants to go to. A FREE MARKET is only FREE when there are no Controls.........
You are absolutely right that such binding will negatively affect the whole of our ecosystem and the blockchain as a whole. It's a very correct remark that this will create problems for traders on exchanges and they will not be able to maintain a normal course for the STEEM and SBD , hence the fall in trading volumes and loss of interest in our currency, which will mean a loss of interest in the Steemit and the development of the ecosystem forget it! Thank you Mark and keep us informed of what's happening!
I'm not really sure what you're arguing for... Are you saying it's good or bad that SBD is making us wealthier?
I wanted to say that traders must decide for themselves what the price will be in the market and the fact that the SBD is high, it gives development.
Exactly! Pegging it to a dollar is economic self-destruction and I feel threatened by these "witnesses" trying to destroy the price. I'm trading SBD myself. I am a crypto trader.
FREE MARKETS are what we want........LET SBD go to any price that way the Market stays FREE
https://steem.io/SteemWhitePaper.pdf
Great stuff @exyle ! Isn't it beneficial for us all a higher sbd? I mean, we earn more for our posts at the end am I right?
A higher than $1 SBD defeats the purpose of the currency then.
The purpose? Is the purpose to be POORER than what's possible? Gotcha!
https://steem.io/SteemWhitePaper.pdf
As you said, @exyle, the high SBD is funding growth for developers and content creators. SBD is tradeable on the open market, and people are paying those prices. Enforcing the peg through some sort of witness or developer action is a completely wrongheaded move, and it's going to drive a lot of the people, especially content creators that are leaving the other social platforms, away from Steem.
SBD was designed to bring stability to the platform, and I think market prices do that. Yes, it's a little frustrating when I see exchange rates fluctuate, but that's normal, and that's why I don't like to focus on SBD-USD conversions. But, a higher SBD-USD ratio attracts users from more "rich" nations due to the higher cost of living in these places. Keeping SBD-USD artificially low is going to frustrate a ton of people, especially as STEEM-USD gains in value. The SBD would become practically worthless on the blockchain, and the system would only favor people with enough resources to purchase a ton of STEEM, or who were fortunate enough to be early adopters. And then we'd be back to square one again.
Also, the white paper says that the fundamental unit of value is STEEM and that everything on the blockchain derives its value from STEEM. Why we continue to focus on SBD-USD ratios doesn't make sense. We should be focusing on SBD-STEEM ratios.
The current price is simply a reflection of what the market believes SBD and STEEM is worth. To intervene and reprice either outside the markets would make Steem Inc no better than a central bank, enforcing its will on the market. Let the markets decide.
Agreed. I lost trust in Steem because some witnesses want this reverse conversion. They sound like the Fed, screwing people over
insightful @exyle
How about not pegging it to a dollar yet, but putting an upper limit relative of STEEM.
E.g We can say SBD cannot go higher than 1.5STEEM and every year the factor(1.5) reduces by a certain percentage until SBD is then stabilized before the reduction would stop.
I believe things like this would help soften the blow and make SBD still valuable compared to if there was suddenly an announcement that SBD would instantly be pegged to $1. Quite a lot of panic would devastate the whole market.
for now, I must confess part of me is enjoying the SBD rise, If it were up to me it would never be pegged. On the other hand a second half of me understands SBD was created for certain functions it may never fully realize unless its pegged.
Seems great, I can't imagine what pegging at a go would do to the market
thanks for sharing it
I will do activities like you . Thanks for sharing this post...best of luck.^^
Very nice !
We can take inference from the currency has long term consequences eventually market moves to the equilibrium so better we don't interfere in working of free hand and let it find it's true value
I agree with you, if something like that was to happen it would cause complete panic on the exchanges. It would cause a mass sell off and would technically be "insider trading".
With crypto being so fragile, its important for us not to make sudden Extreme changes.
#My2Cents
yes good boss @exyle Good luck @saifulanwar
True thry
great video,
everything will be all right,
your information is very helpful for us,
thanks for sharing
It seems like sbd could be the global currency?
Nice post.I respect you very much because you contribute to steemit.I will do activities like you.I would like to extend the steemit.@exyle
Great analysis and discussion. Thank you for sharing. But I am bit confused about the future of steem?
I like this your story thanks for sharing this post best of luck..
Not - Third option - 1 SBD to be minimum $1
I agree. While I think that it should be stable at 1$ in the future, right now it should stay the way it is for some time. The growth is amazing and we should'nt stunt it.
Amazing post..I like dtube channel..I appreciate your story writing..Thanks for sharing this post.best of luck.
I couldn't agree less with you....
Coupled with the fact that any disruptive move right now can discourage a lot of people....
But in all, we are all hoping for the best...
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.i am so excited to see your next post....
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