Great points! The increased volatility of Steem due to SBD wasn't mentioned on the show and it is true.
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Great points! The increased volatility of Steem due to SBD wasn't mentioned on the show and it is true.
I am all for the removal of SBD if doing so serves to give STEEM the wings it needs to soar to the heights we all know it is capable of reaching. One thing that I believe needs to be clarified in greater detail is how that process would be actuated.
There are plenty of SBD tokens out there currently being held by members of the community. It seems to me that if all SBD were exchanged for $1 worth of STEEM at the same time then that would be a serious problem.
I would expect the removal of SBD would have to be phased out over a period of time, and I think that you or Dan should present the community with a plan of action for how that could--should the community want it--be implemented.
There needs to be a clear method in place as to how this would be achieved before users can confidently decide whether it will be helpful or hurtful to the economy.
This is the main issue that needs addressing.
The community/traders would have incentive to lower the price of Steem in order to get more Steem per SD. Simultaneously, this would incentivize the holding/buying of SD to sell at latest point possible.
The only clear solution and fair method to address this connundrum that I can see is for Steemit to purchase ALL SD at either market rate or preferably an agreed price which would also have to have the consensus of the community/stake-holders. We can't just take or force holders of SD to sell, however holders after a certain date would be holding them on a defunct chain.
The further benefit to this is that it would distribute Steem further, help further de-centralise consensus/influence and substantially reduce Steemit's holdings. This would be consistent with Steemit's stated goals and would address the further problem of perception and FUD currently circulating by detractors.
If this can all be managed, then I believe Steem has a great chance to become THE digital cash of the future. This would help marketing and general perception and adoption by the larger public I believe. Anyway, just my thoughts....
Thanks.
The main benefit that I see with SBD is that there is little to no risk "cashing it out." I've withdrawn around $5000 since starting steemit, but all in the form of SBD. Since it'll always be worth around $1.00, I won't miss my chance by selling it too early or too late, so it's a safe way to earn something now from steemit.
I have almost 7000 liquid STEEM, because I have only rarely powered up 100% and I have never sold any STEEM. My SP and STEEM will be held long-term.
From my point of view, SBD is the best way to withdraw something from the wallet without risking major losses in the future because of a premature withdraw.
Of course, we all want the value of STEEM itself to increase, so if removing the SBD from the platform can help accomplish that, then @papa-pepper will support that decision, but the stability of the SBD may be worth more to the platform in other ways, so many variables must be considered.
Thanks for all that you guys have done and are doing @ned!