You are viewing a single comment's thread from:

RE: SBD Debt Reduction - A Fiscally Conservative View

in #sbd8 years ago

Great service announcement, Tim. Anyone looking to buy STEEM now should consider buying SBD first and converting. The downside is this will create demand for SBD which is already at $1.06. We saw the value of SBD spike up the last time there was a sudden price spike also. Becuase of this debt instrument, it seems we've built ourselves a very volatile cryptocurrency. At least it's nice to see it go up for a change. :)

Sort:  

Debt should not be volatile generally speaking, unless there is a high risk of default or it has a high fixed rate of interest. Crypto markets are a bit 'weird'. For example, currently my own trading (which normally helps keep SBD close to 1) is limited by the fact that Poloniex's API is broken.

As a short-term thing, that is probably OK. When the price goes up from $1.00 there is more of an incentive for people to sell. It might be what is needed to free up some of the SBD that is in "long-term holding mode".

Yeah, that's a great point as well. Curious to see what will happen.