"you're failing to help the system print more SBD to drive the price down to where it should be"
who cares, isnt it better if its worth more?
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"you're failing to help the system print more SBD to drive the price down to where it should be"
who cares, isnt it better if its worth more?
It's better if STEEM is worth more, but the purpose of SBD is to have a constant purchasing power.
doesnt it only matter in one direction, meaning: if steem drops to less than $1, then having SBD saves you from that loss. But in the other direction, who cares? Like let's say you have 2x steem at $1, you turn it into SBD, which is trading for $1.50. Then Steem drops to $0.50. So...you can still get 2x steem for each SBD. Or you can sell each for $1.50...What's the downside?
Nah, price stability works in both directions. I'd like a safe harbor for crypto profits, but right now SBD isn't that because it has this huge downside due to trading at a premium.
I think you understand this better than I do - can you give me an example situation where having more expensive SBD would be bad?
Right now is a good example. With bitcoin booming, anybody who wants to protect their profits needs a place to put their money that won't lose value -- and SBD is generally supposed to fill that role. However, right now SBD is guaranteed to lose over a third of its value as it drifts back down towards the peg. So now one of the key use-cases for SBD is broken.
Ahhhhh. Got it. Thanks for the explanation!!
Or say Steem goes from $1 to $2. Having SBD during that transition is bad for you. If it's worth more than $1, it's not as bad.