Echoing @malicered 's Defense For NOT Pegging the Price of SBD #negthepeg
I thought his thoughts on it were powerful and passionate, so I wanted to rehash it so more people can read it:
Credit: @malicered
My thoughts:
Why destroy something that has incentivized tens of thousands of people in a couple of months? Some people even say it's going to happen naturally due to SBD's inflation, but now people want to crash it even faster using artifical, socialist/communist means. Don't. Please, just don't...
I think you misunderstand a few things. First thing, there is nothing socialist/communist about creating a pegged asset. Those systems are based on people sharing resources, usually executed through a coercive government that forces compliance.
I'm assuming that when you use those terms you are referring to force and coercion? But that is still not the case because no one is forcing anyone to use steemit, steem, or sbd. The entire system is completely voluntary and we can all do what we wish as long as we follow the rules. If we don't like the rules, we can leave. One of the rules is that we can vote for witnesses and the witnesses can decide on rule changes.
Second, sbd are designed to be pegged at $1. That is the whole point of them. They are are debt instrument. Steem was designed to have the "steem" token that would rise or fall in value based on the value of the community and the "Steem Backed Dollars" (SBD) that would be a stable store of value. There is no point in having two currencies that do the same thing.
The only reason SBD are so high right now is because people who are buying them and holding them don't know or understand that the value will be driven back down to $1 over time. Once they realize that, the value will crash back down. How will everyone feel when suddenly their savings in SBD are wiped out when the price crashes back down? Keeping a good peg will prevent that confusion from happening. The average person shouldn't have to worry about how high or low SBD are from day to day, they should just be able to trust that it will stay at a stable value.
Right now, SBDs are in a bubble (true value at $1, market value $6) that will eventually pop. Creating a peg will stop a bubble from forming in the first place.
I am enjoying selling my SBD for these high prices as much as anyone else but I feel bad for whoever I am selling them to, they are going to lose a lot of money.
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