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RE: Steem: Where DOES the money come from?

in #steem7 years ago

Thanks for a good post.
But isn't it possible that steem dollars can "go bankrupt" if the value of the assets drop by 95% or more? In a normal market it would be a total fluke event. But in cryptos extreme moves are much more common.

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THANK YOU FOR YOUR VALUABLE INFORMATION!

@feildsofgold

Hey thanks! As the market value goes below a certain point less Steem dollars are created. Currently there is only $3million in Steem dollars out of $465million in value so that's less than 1% so it would have to go down 99%! Also even if that were to go down that much you get a certain amount of Steem collateral that may be temporarily worth less, but you'll still have something. Just like if you backed money with real estate the real estate value may go down and you may end up getting the real estate collateral instead of money. Eventually the real estate may be worth more.

Thanks for such a informative post...

For Steem to really take off it just needs to copy youtube's video format and keep the decentralized anti-censorship aspects.

And that just happened. Check out Dtube.video

steem dollars or any cryptocurrency value totally depends on demand if everyone cashouts steem dollars it will eventually go down.the bitconnect tokens that were given to its investors as an exchange to their capital while it was shutting down is a good example ,

like any other currency in the world