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RE: Should SBD Be a Pegged Asset? If So, When Should We Peg It?

in #sbd7 years ago

When pegging the SBD becomes necessary (and it will), we need to be careful as to not only WHAT we peg it to, but also WHEN we peg it to.

If pegging to the USD, I would peg it to the purchasing power of the USD of 1912.

That would make the SBD have the purchasing power of about 185 USD today.

Pegging the value of a currency to the PRICE of a currency which a governent/corporation can devalue is utter madness.

Pegging it to the purchasing value of a given currency at a specific time in the past is the only reasonable solution in my mind.

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That's what HERO has done, and it's certainly interesting but not useful for most of the people who rely on USD for daily purchases (both in the United States and in other countries which peg to the dollar). We're trying to come up with something reasonable and if most merchants have goods and services they have to pay for directly, saying "this token is worth 1 USD" is the easiest approach, not a token which requires some math to figure out today's value.

In the future, as USD becomes less relevant, I'd be all about pegging to something else. Maybe a basket of currencies or SDRs or gold or silver or something. The point would be to pet to whatever most people are most comfortable using.