You are viewing a single comment's thread from:
RE: Your Estimated Account Value is Way More Than You Think It Is : Everything About Steem Wallet Value
Why do people buy SBD at more than 1 USD when the issuing Steem blockchain only values it at 1 USD?
This irrational demand for SBD is destroying the utility of the pegged cryptocurrency which is to give holders of SBD some stability and some tether to fiat currencies.
Thats true.. but you already gave the answer to your own question. Why do people buy SBD at more than 1 USD? Because it is stable and tether to fiat currency. They know it is not just a random sh*t coin which is trading at 4$ today and will tank to 0.4$ tomorrow.. thats why people buy SBDs.. and the huge demand of SBD has led to increase in prices..
I understand traders have lost some faith in Tether (USDT) and have instead opted for SBD but why then hasn't the same happened to other pegged cryptocurrencies such as bitUSD (BITUSD)?