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

in #ned8 years ago

SBD is usually about as liquid or more liquid than STEEM. It is common to be able to trade 1-3k SBD near the market which is equivalent to 8k-24k STEEM. The latter is only sometimes (not all that often either) available near the market.

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That is not the issue, the issue is th value siphoning, I will write an article soon about it, where I will detail the problem.

Liquidity is measured in the spread and the market depth which is much much less for SBD than for Steem.

The value 'siphoning' (as you call it) is frankly so small as to be negligible. This is something where you really have to work out the numbers and especially look at the market cap ratios along with a reasonable calculation of what percentage of the market cap is a reasonable estimate of costs. My rough estimate is well under 0.5% of STEEM market cap per year possibly (with somewhat favorable assumptions) as low as 0.1% per year. I view SBD's utility as easily adding enough value to carry its weight and it isn't close. I have some other doubts about it, so this shouldn't be viewed as unconditional support, but I just don't by the 'siphoning' argument holding water based on the numbers.