Yep, I'm not sure what we should think of SBD at this point. If it's not a stable currency then what is it and why do we need it? :)
It's going to be interesting to see where this ends up. I guess I'm silly for not powering down but I kind of want to ride it out anyway! All my SP/SBD is from earnings anyway, easy come easy go I guess. I'm prepared to hodl my crypto down to 0, so we'll see where this goes!
I guess it helped that I never invested more than I could afford to lose in crypto!
and I've been through all this before. I'm not feeling FUD. I've got FOMO (not for Steem though mind you)
I would be expecting the calls to abolish SBD to be getting louder at this point as people start asking that question.
My personal opinion is still that we need to fix the peg with reverse conversions so that if we ever pull out of this death spiral and recover it will become useful again. Unfortunately the reputational damage to the SBD and STEEM overall is significant at this point.
I wonder how other digital asset-pegged stablecoins are doing right now. Dai looks fine, so far. Aren't there some SBD-sort-of's in the EOS ecosystem?
Not sure on all the other stable coins. I do know that bitUSD on Bitshares had a Black Swan / Global Settlement that made a bit of a mess. I have resorted to a fiat backed stable coin for my reserves - specifically TrueUSD.
I do hate the idea of having counter-party risk on my stable coin and trusting a bank for my Crypto reserves....but desperate times call for desperate measures.
Regarding the bitshares black swan thing. Do you have a link where i can read more about that?
https://steemit.com/bitshares/@lukestokes/bitshares-global-settlement-and-chain-freeze
Thanks
NuBits was the first to be rekt by the crypto bear market followed by SBD and BitUSD. DAI is still doing okay but my view is that is mostly because it is relatively new and tiny compared to its backing asset, ETH. Given a bit more time to grow before the crash (or with a faster and/or deeper crash) it would likely end up looking a lot like BitUSD.
It appears they all suffer from the same limitation which is simply that too-rapid and too-severe depreciation (aka crash) of the backing asset isn't something they can absorb while retaining stable value. We will need to evaluate these solutions not in terms of retaining stable value unconditionally (which appears impossible) but in terms of the magnitude of the shocks they can absorb and their ability to recover. (NuBits, for example, still hasn't recovered after several months and now trades around 0.05.)
I expect this is something (at least for now) that users of algorithmic stablecoins are simply going to have to accept as a necessary tradeoff for not having a counterparty and everything that goes with it (for example all of the new custodial stablecoins have features which allow the issuer to freeze your coins).