I have changed my mind on SBD, I used to be against it, but now I see that it can actually open up new ways to add value to STEEM, and expand this economy.
SBD derives it's value from Steem that is true, but SBD is a more currency oriented token, less liquid than STEEM but the peg system that gives it value could actually work if more demand arises for SBD.
And slowly, we do see that SBD is being used:
- The promotion feature is now working again and it's based on SBD
- SBD will be accepted by Steemstreet, an auto-curation service, for premium features
- SBD is used by Streemian a similar auto-curation and post management service
- And many more at: http://steemtools.com
So yes, if this is the case, then SBD will act like a sponge that actually draws the inflation away from STEEM, by adding demand to it that negates the inflationary effects.
- Because if people do buy SBD, they have to buy STEEM first, thus adding demand to it, and it also locks that value inside a 7 day inflation container, while the SBD can be traded freely. So you are actually trading the excess inflation, that becomes an asset. Yes the liability becomes an asset, if people do use it.
- Secondly if too many people hold SBD, then the issuance of SBD ceases, and posts will be paid in liquid STEEM, because SBD is a debt instrument after all, and the system should not be over leveraged.
I have to admit, I was wrong on SBD, and @dantheman is actually a genius, for coming up with this system. I haven't seen the big picture before, so I only saw the inflation part of it. But if we put it all together, it's actually brilliant, and pretty efficient.
It's like a giant engine with many pipes, and you have many valves where the "STEEM" can go out, no pun, and while most of the burden is on STEEM, and we can see that the price is taking a hit, the concept itself could work, if the demand rises.
So it's a pretty complex system, and I was lazy to read the whitepaper, however once you understand it, you have to realize that it's actually a very good monetary policy.
Getting the Demand
Now all is needed for it to work, is to create the necessary demand in the first place. One way would be to change the payout ratio, so that SP holders would be less affected. Steemit can also add monetization options, like ads, or other systems.
Steemit can roll out many more useful features over the coming months that will create that demand, I am certain of this.
Another useful tool would be to build a decentralized P2P marketplace on STEEM, by using SBD for it. That would be the ultimate app. And the sky is the limit. The point is that the system is setup well, it only needs a few more tweaks, and a lot more entrepreneurs building projects on it, to create this demand.
Disclaimer: The information provided on this page might be incorrect. I am not responsible if you lose money using the information on this page! This is not an investment advice, just my opinion and analysis for educational purposes.
Upvote, ReSteem & 
"Another useful tool would be to build a decentralized P2P marketplace on STEEM, by using SBD for it."
Steem World!
Yes I agree that turning steem into a multi-use commodity is always good.
I like having them. You can also do some "trading" by waiting to power up when Steem price is low.
You don't need to have STEEM in order to buy SBD on Poloniex. BTC is enough.
BTW, using five tags is triggering an insidious bug in this version of Steemit - with five tags, your post is visible only under the first tag and nowhere else, severely limiting the reach of the same.
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Nice reading this post.