It has been a nice rally on SBD and we could enjoy some amazing payouts but every party got to get to its end at some point. The same will sooner rather than later as well happen to the price of SBD. It'll go back down to being worth about 1$ only.
It's always been illusional that the price of SBD could stay higher than that for a longer period as it's first not supposed to be like that and second the mechanics of the steem blockchain work against it as well. Hence pumping SBD could be considered a Sisyphean task!
I'm not going into the details on what's likely or like I think even imminent to happen but would rather recommend you to take a look at this post from @buggedout. I think no one explained it any better so far than he did:
https://busy.org/@buggedout/the-coming-steem-dollar-purge-why-it-needs-to-happen-and-how
That being said I'm converting all my SBD as long as they are worth about 1 Steem each as such a time will probably never ever come back again. Of course it's possible as markets are sometimes irrational but personally I wouldn't bet on it...
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Currently, I'm buying back again. Maybe SBD worth at $5-10 sounds too absurd, but I think it may worth $2-3.
It'll fall back to 1$, which will hopefully happen quite soon. A stable SBD price could bring in many businesses accepting SBD as a payment, which would just benefit the longterm growth of steem.
One of the easiest way to hard peg SBD to 1 USD is to reverse convert to STEEM. Reverse convert is explained in the second comment in the post https://steemit.com/steem/@buggedout/the-coming-steem-dollar-purge-why-it-needs-to-happen-and-how#@crypto-futurist/re-buggedout-the-coming-steem-dollar-purge-why-it-needs-to-happen-and-how-20180408t082633928z
Will there be a problem to keep SBD as 1 USD, since it forced to create more STEEM. I wonder how these STEEM and SBD are created to keep SBD pegged by keeping yearly inflation rate fixed.
However, STEEM supply is kept to a fixed rate (i.e. with 0.5% decreasing rate per year, currently at 9%). Is that emission/creation or burn/destruction of both STEEM and SBD due to conversion will be on per with inflation rate.
What happens to fixed inflation process if more STEEM/SBD are created on conversion process? Or, effects (e.g. slight increase or decrease) are negligible to fixed rate of inflation.
Currently, more liquid STEEM are created since SBD (i.e. 1USD pegged SBD) ratio of STEEM market supply crossed 2.5%, at 5% SBD production will be stopped.
What understand total reward pool (both SBD and STEEM) is generated on the base of inflation rate.
When the Price of SBD jumps UP I do what any smart STEEMIAN would do buy more STEEM with my SBD and POWER UP the STEEM !
Now that's what I call @steembusiness
Most probably the smartest move one can make but of course we won't know for sure xD Eventually some whales just don't want to see SBD at 1$ and start pumping it again. Time will tell but I keep converting ;)
O. Welcome weekends.
Your Post is very interesting,I hope you can make the post more interesting of tomorrow..
Oh your comment is so amazing, I hope you can write a proper one tomorrow...
:D
I held my SBD for long for a good ratio. Then I got 25 steem for my 20 SBD. I'm still gonna hold around 10 SBD for a good exchange. There has to be a pump before it goes back to $1. I'll just grab my share during the pump.
Generally when the market improves, SBD is the faster moving currency as compared to steem. That's when you get a good deal for exchange.
I think you could be mistaking. And that it will only be a matter of time until the next SBD pump will take place.
Because how maniest time was it that SBD was pumped?