You'd be better off saying "it isn't pegged" and leaving it at that. Pretty much everything else in this article after that statement is not correct. I would look up the interest rate and the witness bias if you want a better picture of the price manipulation mechanisms for SBD.
Actually, pretty much everything in this post is accurate, including the white-paper revisions, the fact SBD has a price floor not a peg, and the fact that the way it is designed over-prints SBD value and therefore inflates market cap. Since SBD has no project or real use, it's not a stand-alone crypto, it has no justification for this higher market cap and natural market forces render it highly likely to trend back towards it's only use - $1 of Steem conversion.
You are right, that was unfair. I apologize. If it is any excuse it was 4am and I was annoyed about something else. That you for responding civily.
I disagree with a few points, however. Mostly, I think that "That price floor is a minimum of $1 of Steem via the conversion tool." is not accurate. It is more of a soft floor that in the sense that the witnesses can increase the interest to artificially decrease supply, thereby increasing the price. It COULD have a price ceiling if witnesses all decided to increase the bias and print even more of the reward as SBD, flooding the market and causing a dip in price. I argue that stability requires, and is designed to require, the witnesses to use the tools at their disposal (bias and interest).
You'd be better off saying "it isn't pegged" and leaving it at that. Pretty much everything else in this article after that statement is not correct. I would look up the interest rate and the witness bias if you want a better picture of the price manipulation mechanisms for SBD.
Actually, pretty much everything in this post is accurate, including the white-paper revisions, the fact SBD has a price floor not a peg, and the fact that the way it is designed over-prints SBD value and therefore inflates market cap. Since SBD has no project or real use, it's not a stand-alone crypto, it has no justification for this higher market cap and natural market forces render it highly likely to trend back towards it's only use - $1 of Steem conversion.
You are right, that was unfair. I apologize. If it is any excuse it was 4am and I was annoyed about something else. That you for responding civily.
I disagree with a few points, however. Mostly, I think that "That price floor is a minimum of $1 of Steem via the conversion tool." is not accurate. It is more of a soft floor that in the sense that the witnesses can increase the interest to artificially decrease supply, thereby increasing the price. It COULD have a price ceiling if witnesses all decided to increase the bias and print even more of the reward as SBD, flooding the market and causing a dip in price. I argue that stability requires, and is designed to require, the witnesses to use the tools at their disposal (bias and interest).