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RE: Open letter to @Ranchorelaxo and @Haejin.

in #abuse7 years ago

SBD at $100....somewhat Okay?

I know there are differences in analysis but do you seriously see that.

Certainly as a content producer I would love that but I find that to be a bit unrealistic. People think I am crazy with my prediction of $100 STEEM by year end but I fail to see how people will pay $100 for something with a face value of $1.

I guess it could happen...just find it surprising that something so wild falls into your somewhat okay category. And we saw how quickly it pulled back from $16 or $17 when someone pumped the hell out of it.

As for the rest of your list, it is a fair list overall.

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The thing is STEEM isn't backed by anything and it can theoretically go below a cent. SBD on the other hand can never go below $1. Even BTC can go below a cent and it's expensive to use and super slow. Compare SBD with BTC. Tell me which one has better fundamentals.
https://steemit.com/steemit/@vimukthi/my-take-on-what-to-do-about-sbd-free-market-all-the-way

So what is SBD backed by so it doesn't go below $1?

1 SBD can be converted to 1 USD worth STEEM. I know SBD has been traded for 90 cents and few times around 85 cents. Anybody who buy SBD at the price could have converted that into 1 USD worth STEEM if they were willing to wait for 3.5 days. Each SBD is backed by 1 USD worth STEEM. If you buy SBD below $1 you are buying USD at a discount (but it's only spendable to buy STEEM)

SBD on the other hand can never go below $1

It's gone below 1 dollar many times

Yes, 100$ SBD seems astronomic and incredible to say the least. I don't think SteemDevs and Witnesses will allow such a thing to happen. However everything is possible in this market.

I really do not believe they have to do anything.

As long as people take 50/50 payouts, there will be more SBD created which, at a certain point, will crash the price.

We were at 3.5M when the peg broke now we are over 7M...

At what point can the market not handle it? I dont know the answer to that but I do know there is a point.

The one benefit is that Steemians can really power up while there is the disconnect and people outside are paying up for something that can ultimately be redeemed for only a dollar worth of STEEM.

Agree! Biggest winners from this are the voting bots in my opinion. Their owners are making big bucks.

Hope to see it back at $10.

Yes, $10.00 would be great, but I don't think we will get an up movement for SBD, I think it will probably stagnate or go down.

I also hope with you.

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Could someone explain exactly how SBD is pinned to the dollar? When I convert SBD to STEEM I convert it on the marketplace for market price, which is not $1. Perhaps I am missing something, but I don't seem to see why exactly SBD should be $1 in anything but name.

It was the initial model for SBD to always be 1$, but then it was treated as its own currency and kept moving away from that concept. Not that different from what happened to BTC that keeps getting spliced into subcategories of the same currency.

But is anything actually pinning it down? If there's no way to cash it out for $1 of goods/currency then I don't see why it would stay at $1.

It is created at a faster rate when >$1.

Most of the developers of Steemit still want to pin it down (I don't know how) so it will look more secure for people to start using it, instead of treating it as a scam that will one day burst like a bubble. The value of STEEM is the only thing that is supposed to change, and even then only for reward payouts withing Steemit. Meaning, the only fluxuation is "supposed" to be the amount of SP you gain, not its value in the market.

Coin Marketplace

STEEM 0.20
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SBD 2.91