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RE: SteemFest Q&A: What Do You Want to Ask Ned?

in #steemfest6 years ago

If the SBD is not equal to $1. What is its interest? Now that it is well known that it is not possible, is it not better to remove SBD? It is just confusing for « normal » people.

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SBD is in my opinion one of the potential "killer apps" of this blockchain. A stablecoin based on the most sophisticated mechanism, "seigneurage shares"

First of all, it does not need to be "equal to $1" - it just needs to have people trust that it will fluctuate between $0.95 and $1.05 about 99% of the time (the more the better)

Let me repeat that: a stablecoin is not one that is rigorously "equal to $1" all the time. A stablecoin is stable if it stays within a 5% "band" (on both sides) about 99% of the time (or more)

What is its utility? Well, we know each other so you are certainly aware about my previous plans with @gudde-wellen (plans were alas wrecked by HF20). If the bar owner is to accept payment for beer (or anything else) in a crypto, it needs something that is as stable as possible because it then needs to go to Bittrex (or someplace else) and exchange those SBD for fiat in order to pay his suppliers (Munhowen, Heintz, etc.)

SBD is the gateway for the steem blockchain to conquer "real world payment use cases" outside the "content creation" ones that are currently in focus

You know how the BTC and BCH communities are fighting to get bitcoin adoption for payment use cases ? They will never succeed in my opinion, despite lightning network and 128MB blocks. Not because of IT reasons but because of economics. The economics of bitcoin (deflationary) make it a lousy "medium of exchange"

SBD could be "the bitcoin killer" in the payment area. And it doesn't even need to be equal to $1 all the time for that

Thanks for sharing this interesting link about seigneurage shares, I didn't know that.
I am in the opposite way of thinking, I am afraid that SBD could be a STEEM blockchain killer in a kind of self-murder or hara kiri. Here is on of the my first post https://busy.org/@elmetro/the-new-world-day-4-the-kryptonite-of-steemit where I try to warn @ned

because it then needs to go to Bittrex (or someplace else) and exchange those SBD for fiat in order to pay his suppliers (Munhowen, Heintz, etc.)

Or better yet work on getting the suppliers to accept it. Not all will of course but start with even one.

Theoretically, yes. In practice you are envisaging a small bar owner, who is already taking the risk to accept crypto, going out on a limb to persuade a big bulk seller of beverages which has hundreds of customers like him and is big rigid corporation to accept payment in crypto for bulk orders .... I'm a dreamer myself but ...

Maybe its not the big bulk seller. Maybe it is a local flyer that does advertising, or paying the bouncers, or ....

I agree with you that trying to convince a huge distributor from the local bar level is not the way to go.

There's a possibility of P&D just like last December.
You can see someone is controlling SBD's price (prolly one of the witness, you know) trying to set it near $1, so you can easily guess that people would believe that SBD is a sort of 'pegging coin', but in the crypto world.. you never know what's gonna happen very next day.

Just my 2satoshis.. ;)

I am a witness (@exnihilo.witness) and I can tell you that in the witness chat, we are more focusing on account creation fees than the SBD existence.
SBD should not be tradable on exchanges like bittrex, I thing it is more them who are playing with SBD price.
But finally you are absolutely right, you never know what's gonna happen and this is what makes things interesting...