Conversion of SBD is different from trading. Conversion is when one converts the debt instrument (SBD) into the promised STEEM value. Trading of SBD is simply trading it for something else (such as what would happen at Binance.
If you are actually talking about trading, then here are some reasons to have SBD on Binance.
The internal market is a decentralized one. Trades are insanely slow compared to centralized markets. This drags down the maximum liquidity of the market and prevents the currency from growth due to trading.
Decentralized markets are for small trades. Large trades in the internal market just don't work. They will bog trading down and cause a unfair shift in the price. I've seen many times when whales manipulate the internal market.
SBD as a debt instrument provides revenue into STEEM system provided there are external outlets to obtain and trade SBD.
Think of SBD this way. You can get Canadian Savings bonds or US savings bonds. They are debt instruments with a promissory value. This is a way that governments generate a revenue stream to pay for things. STEEM does the same thing. One exception is that we are being partially paid in SBD. Another exception is that instead of the Government benefiting, we benefit instead. If the SBD were available on open markets, then it would be traded often and be worth more. Essentially the money you get paid for posting and commenting will be worth more and/or the STEEM system will benefit from the additional source of revenue.
Thanks for the reply. I see your point about being able to trade the debt instrument, but I'm not clear on how this could influence its underlying value. My understanding was that SBD was pegged to the dollar so its value isn't subject to supply and demand.
Well... Let me inform you that SBD is not pegged. Not even the creators of Steemit can get that one right. There are mechanisms that are by design meant to stabilize price to $1 US, but it is not a pegged currency. SBD has a promissory value of $1.00 US. That is not a peg.
Keeping SBD price low is very bad for the following reasons.
Low price doesn't incentive people to create content. Imagine if your employer wanted to pay you in a special currency and went to great lengths to keep the value of that currency low. I would imagine you would not be happy working for that employer.
High SBD value over $1.00 US actually creates a discount for the STEEM system since the conversion rate is set to $1.00 worth of STEEM. Essentially we get more bang for the SBD buck and the debt is much easier to pay.