So let me ask you, why was SBD created in the first place? Why are the reasons for its creation any different today as then were then?
The original reason as I understand it was to give a more stable currency to be utilised against the hyperinflationary nature of Steem itself. I don't think it was meant to be used or traded the way it was. Since we no longer have the hyperinflationary model the rational for it is gone.
I'm happy we've done away with hyperinflation, but that's no reason to remove SBD since it wasn't the only way of escaping the hyperinflation to begin with. In fact, there were many options to avoid the hyperinflation of STEEM (including SP, almost any other cryptocurrency, most fiat currencies, etc.)
For many people, the primary value proposition of SBD was (and still is) instead to escape the volatility of cryptocurrencies, while still holding an asset 100% in their control (i.e. zero counter-party risk). In fact, I would argue that this is the best reason for most people to hold SBD (perhaps aside from earning interest, depending on your needs and point of view).
Some have also argued that SBD causes systemic risk. But in that case why not just lower the interest rate (substantially, if need be)? That way fewer people will hold it, but it will remain a selling point for some % of people that otherwise might not consider the platform.
Great point. I hadn't considered that. Could we make the interest rate zero or equivalent to it to in an economic sense to just compensate for real world inflation? I think that could be a compromise. Thank you:)
Great points here @tombstone! It also allows people to "hide out" in times of volatility in the underlying currency while not leaving the ecosystem... not many other cryptocurrencies allow you to do that! :) BTW, what made you pick your name? Tombstone is one of my all time favorite movies! :)
Granted, we did away with hyperinflation, but there are other benefits that are just as valid to helping noobs understand and adopt SBD and Steem and easier for merchants to understand. Isn't that just as important?
Can it be sustained and paid for with the Steem price so low? That seems to be the real issue. Is it being managed right?
I know some of my friends joined because they liked the simplicity of the SBD. It's easy to understand for them
I don't think there is any way to know for sure. These are new realities and it is all very experimental.