SBD stability failure
SBD are trading at more than $7.50. BitShares bitUSD should be worth at least twice that, since they actually do what they're supposed to do...
The BitShares market pegged asset system has been very effective. I don't know why Steem only copied half of it for SBD. There's a proposal to fix this on Steem using the BitShares design here: https://github.com/steemit/steem/issues/1839
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.
lol it literally makes no sense at all. SBD are now worth more then steem itself which is the real currency lol
yesss
I'm with you, all people are very happy with this price... and in all my comment I reply that it is not good, it is bad... you are the first person that I see talking about this "stability failure". We need a STRONG WELL PEGGED SBD, because by definition it worth 1 USD.
Thanks for the link of the issue, I also write a post with a proposal that says a similar thing, and I explain the details about that.
Talking about SBD rewards, I posted an infographic of author and curator rewards. I think it is very informative. Regards.
I wish i save all those SBD i made since i got here. I am happy with price of Steem itself now too it continues hover near 2 bucks
Indeed. I have no idea why anyone wants SBD enough to pay so much. What could they be doing with it?
Its kind of a mystery
Not much of a mystery, I would guess it was speculation. Almost all crypto were going up like crazy. There is such a small amount of SBD in circulation you could probably manipulate the price with around 50k.
Do you think the market is being manipulated? It's over $ 10 currently on Bittrex.
Yes, definitely!