I always wondered about why SBD is so high. I mean, you have all the incentives to keep STEEM not SBD, and SBD is mostly spend as soon as it is received. And its ammounts multiply with time.
So, @troglodactyl... what happened? Why did it rise so much?
What happened is people decided to buy SBD faster than the Steem network produces it. Since there's no way for people to meet that demand by producing SBD faster like there is on BitShares with bitUSD, that means prices of SBD rise. I'm guessing when that started happening and it became clear that there was no effective way to keep the price down people started buying even more due to fear of missing out. Eventually I expect either the system will be fixed, or the hype will die down and Steem will grow such that SBD production keeps pace with demand and SBD price parity with the dollar will be restored.
Thanks for the explanation... yes it does make sense, but it doesn't seem wise for people to buy it. FOMO may be the only explanation.
I agree it seems unwise. Eventually we can expect people who are buying at high prices to lose money. FOMO driven surges don't last forever.