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RE: Ned on SBD: "Does the community want to continue to be paid out in Steem Dollars?"

in #ned8 years ago

Steem Dollars have, for me, always been a quandary.

On the one hand, it has been really nice to have them as an option. On the other, I realize that having the power to demand a certain dollar amount of Steem at any time can only lead to Steem inflation.

I don't know that I am ready to let go of the Steem Dollar, but, at the same time, I don't know if Steemit can survive with it.

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having the power to demand a certain dollar amount of Steem at any time can only lead to Steem inflation.

It leads not specifically to inflation but to leverage. That is, increased inflation when the STEEM price is declining but decreased inflation when the STEEM price is rising (i.e. $1 paid out in SBD rewards can only demand a smaller number of appreciated STEEM)

Getting rid of SBD does not change this. If I think STEEM is going to fall I will hold BTC or Tether or real USD or something else. I won't suddenly decide to hold something I expect to fall because you have removed one of a huge number of available alternatives. This argument is nonsensical.

Nonsensical to you perhaps. Not to me. On the basis of that reasoning we don't need SD anyway since we have USDt or real USD.

We will not agree on this so let's just leave it there.

That is the heart of the problem I think. We want what is best for Steem but common sense says to hold onto those SD if we think the price will fall. Multiply that by a thousand or ten thousand and it is a problem for demand. On an individual basis it makes sense because we want to increase our holdings but as a community it hurts us.

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