You are viewing a single comment's thread from:

RE: Attention Keynesian Meddlers - SBD Floor ("Non-Peg") Is Working As Designed

in #sbd7 years ago

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).