You've put into words the concept that still baffles me...I just don't quite understand if Steem dollars actually translate into actual currency that can be used for everyday life. Without a basis, a physical supply, where can the money come from? Having said that, I also know that while our US dollars are based on gold, our treasury doesn't actually have that much gold and thus much of the US dollar is based on thin air too. But still, I don't quite "get" it. I'm new and maybe in time I will and I think I'll try to cash out a small amount and maybe running through the experience of this may help clear things up.
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um. US dollars havent been backed by anything for decades. It is just an IOU from your govt.
Steem dollars trade at roughly $1 via several markets, so regardless of how either is backed, they are convertible to each other.
Have you heard that "time is money"?
There are also new thinking that "attention is money"
steemit's currencies represent the time that the content writers and curators put in and the attention that this content gets. In the information age, this is actually closer to real value than some lump of metal you have to pay to store safely.
Steem dollar is basically a freely transferable financial instrument that tracks the value of USD.