So basically I don't even need to think about this unless SBD drops below $1.
I still don't understand why it's so important for SBD to be at $1. As someone else said, shouldn't the market decide rather than witnesses? Apologies for my ignorance as usual! 😊
But, let's say that Steem stayed where it is and SBD went to $10. Apart from the fact that a lot of content creators would be very happy, what would be the consequence of that?
They seem to have been dead-set on creating a "stablecoin" even though they are always destined to fail. Bitshares/BitUSD in the past, and now steem/SBD, and I'm sure EOS will have its own weird stablecoin implementations especially considering they're working with Bitfinex now, who are the Tether stablecoin creators as well.
I din't realise there were other "stablecoins" created @charitybot. I thought SBD was the only one. I've so much to learn! 😊
Thanks for the info.
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.
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. 😊