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RE: Ned on SBD: "Does the community want to continue to be paid out in Steem Dollars?"

in #ned • 8 years ago

Nope more complicated then that.(though not rocket science) SBD transfers its volatility to Steem, which is BAD for all kinds of token, Also it causes FEED DISCOUNT . FEED DISCOUNT requires Steem network to print Steem and sell it on market. Lastly, there are ridiculously high interest rate.

Which is all bad for steem price. Maintaining SBD is not free. It's actually quite expensive. ( Cost to maintain SBD ) > (Benefit from SBD)

8 years ago in #ned by
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     8 years ago (edited) 

    So to keep SBD stable we have to sell more Steem on the market and that drives the price of Steem down, especially when the price is already low. Have I got that right?

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       8 years ago  

      If this is true, then post HF16 means that Steemit has become the Federal Reserve and SBD is Quantitative Easing QE4.

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