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RE: Market Update: STEEM closes at 1 month highs against USD and AUD

in #steem7 years ago

So since you know a lot about this stuff, I always wanted to ask the question, who's buying SBD? As far as I know, SBD is only paid out from posting, so why is it bought for anything other than trading?

Are there people other than traders who buy SBD?

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I suppose it depends where you draw the line between trading and investing, but technically, any one who buys or sells a cryptocurrency is trading.

SBD is essentially pegged to the US Dollar which makes it a very attractive hedge. It's also a hedge that doesn't require you to trust the issuer, as it's not backed by $1 USD, it's backed by $1 worth of STEEM.

If you wanted to sell your crypto investments temporarily, without having the hassle of going back into Crypto from fiat down the track, SBD would make a lot of sense.

Hmm yeah, that makes a lot of sense! There isn't any other cryptocurrency that is pegged to the dollar, is there? Thanks for explaining it :-)