RE: Unpegged SBD: A Pointless Speculative Asset
Any market could crash 90% tomorrow
That why things like tether exist. Traders flip into tether and can buy cryptos at a lower price. We already have a speculative asset called Steem on this platform. What's the point of having two? To confuse people? If even have a better tether, then think about all the people we could attract to Steem.
You don't want users around that are here for "the money"?
No, it is fine if users are here only for the money. I won't feel bad if they leave simply because the price of a speculative assets decreases. It means they lack long-term perspective and didn't really care about the community.
there is literally nothing that says SBD can't keep this price for years and go even higher.
Looks like someone has not read the whitepaper. Not saying that you have to, but it good to understand how these mechanisms work. 10 SBD will be produced for every STEEM when STEEM is $10. 100 SBD will be produced for every STEEM when STEEM is $100. 1000 SBD will be produced for every STEEM when STEEM is $1000. If the supply grows faster than that of Steem, people will eventually figure out that asset loses value as STEEM goes up. So, your argument is refuted by math. Just because whales can pump the price and draw out suckers doesn't mean they'll do it and be able to do it forever.
destroying 700% of something's value
Let's say that we implement the reverse conversion. The free market determines the price of SBD. If nobody uses the conversion from Steem to SBD, then the price should hold. Why restrict the transfers one-way? Shouldn't we also allow trade the other way and allow smart people to make money? Wouldn't such a mechanism provide a freer market? I would not be destroying 700% of something's value, the free market would. Not that there is anything wrong with that. I'm sure you agree with me on that. The free market should determine the price of an asset. I simply want to free the SBD.
The market is determining the price of SBD? That’s why it is where it is. If it was pegged to the dollar, developers would be determining the value of SBD. Supply would be increasing and decreasing to match demand. This is not a free market, that would be a manipulated market that has no true value. Because your 1 sbd would be worth $1 dollar now and 20 years from now it would be the same. That is not a free market. That is basically what the government does by just printing more money over time. Set a fixed supply and leave it that way. The market should decide what to do with SBD.
SBD's are designed to not have a fixed supply (even now). They are being printed like fiat money (except slower and less efficiently). The issue is that there is so few of them that when a speculative wave comes they jump up in price and people think they are worth holding. Over time, SBD will return to the peg. Either that or Steem will not increase in price.
There is no manipulation in a peg. It is a market instrument backed by Steem but people are using improperly and reducing it to a speculative token.