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RE: Pegging Steem Dollars (SBD) to USD : A Pro and Con Argument
I am against the peg for a simple reason.
SBD is a debt instrument. For each one issued, $1 of STEEM is required to pay it off.
Since November we saw the amount of SBDs outstanding jump from 3.5M to 9.8M...So the ecosystem must have more debt?
Not really.
Back in Nov STEEM was $.85 meaning it took 4.1M STEEM to pay off the debt. Today it takes 2.92M STEEM.
The debt actually costs less STEEM today than it did 4 months ago when there were 1/3 the SBD outstanding.
Very good point indeed, I agree with you. However it means that you support 2 speculative currencies in the ecosystem? there are two sides to the arguement too however as stakeholders we would prefer the best to win.
Yes that is an issue.
Although I am not sure what is speculative about SBD...it states it is worth $1 of STEEM...people want to pay more, that is up to them but the value still is the same for redemption.
It runs up to $30, it is still worth a dollar.
But you are right, it is a subject of great debate.
Also, the market might take over. As more SBD produced, the value should be driven down.
I agree with your view point however based on making more money via my post and thus gaining from free market economics however as you indicated, the other side has a point which Charles analysed well...speculation is not good for the ecosystem and having 2 speculative coins is bad.
Good point, I agree with you. I believe in free market however this is an issue that needs to be resolved before the end of this year in order for members to know their fate on time with regards to SBD.