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RE: No, It's Not More Profitable To Go 100% Power Up Once SBD Is At Parity With STEEM

in #steemit7 years ago

The idea is to have, like @charitybot says, a "stable" currency, which is very important in certain businesses. Like e-commerce, for instance. If you use a volatile means of exchange, you can't really make e-commerce, because the supply chain will explode. On the other hand, a volatile token will please a lot of traders (or should I say speculators) specifically because it's volatile.

It's a tradeoff. And while I don't think there is a perfect "stablecoin" mechanism out there, I'll do my best to support the one I'm using now, as a witness.

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Oh. I see @dragosroua. I understand the trade off now.

That has answered a question I had about why anyone would sell goods using crypto as a currency when it is so volatile. I just couldn't see how it would work. But now I see that that is the point of SBD.

So the bit that really remains to be seen then is, whether or not, SBD can truly be pegged to the dollar. There seem t be those who believe that it can't.

I've taken a step forward today in my understanding of this. Horrah! and thanks. 😊