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RE: Powerup Statistics #21 - Sep 14th - Sep 27th + Addressing STEEM Inflation and why SBD is $0,62.
I think the main problem was SBD spiking over 1$ which caused a lot of these issues. And not the steem price itself spiking.
Read the post again. It was precisely the rocketing of the price of STEEM that caused the problems @exyle is talking about. That's because the quantity SBD in circulation increased tremendously (remember, all liquid rewards are normally paid out in SBD). SBD is Steem Backed Dollar as the name suggests. The exact mechanism of backing it uses is the process of conversion into STEEM whereby new STEEM worth exactly 1 USD is printed for every 1 SBD burned. When the price of STEEM is very low, particularly large amounts of STEEM is generated in the conversion process, which exacerbates the problem until the SBD Debt Ratio goes above 10%, in which case the conversion no longer yields 1 USD worth of STEEM for every SBD converted (=burned).
The price of SBD spiking had absolutely nothing directly to do with these problems. To a small degree, it played a part in causing STEEM to spike. But that part was not too big because the market cap of SBD was never too large and because the price spike of SBD was very short-lived.
True, the problem is if Steem spikes up, SBD print rates go up, and when the Steem price then goes down again, the sbd price will stay at 1$ and will then pressure the Steem price. I got it wrong.