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RE: Boost Steem Value by Backing Steem Dollar
Downvoted for irrelevant clickbait title. You did not explain how stabilizing SBD helps the value of STEEM. You didn't even give a poorly reasoned explanation. You gave no explanation. Downvote will be removed upon the addition of a reasonable explanation.
P.S. Moreover the price has been very stable between $0.80 and $0.90, so this really isn't about stability, it is about raising the value of SBD relative to what it is now. That means, necessarily weaker STEEM, because strong SBD represent more STEEM. If the number of SBD are fixed, then that means the supply of STEEM will be greater, meaning the price is reduced according to supply-demand laws.
It could be very stable between $0.50-$0.60 also... The point is to stabilize nearer and tighter to the $1 value, between $0.99-$1.01 for example. Why should he explain the obvious?
I try to appreciate SBD for the sense of security it provides to newbies - like training wheels, sort of... but I keep circling back in my head to "why do we even bother with this?" I'll bet that it would work out just fine to remove SBD entirely and let newcomers think that steem isn't real money at first. It might even be a good thing because they'd probably feel less intimidated by it if it felt more like play money. I dunno, do you think I'm overlooking some other value that it provides that's worth holding on to?
The dollar is a necessary bootstrapping mechanism. It is much more likely to bring users to the system. Perhaps at some point in the future, when steem and SP are known by mainstream as having real value, then the secondary assets can be done away with completely.
I used to think that too but I'm not quite buying it anymore. I've been observing a lot of newcomers and helping them get into the game without any prior crypto experience (which is still most people in the world). They usually feel like Steemit is like a game with steem serving as a sort of play money. They only start to get intimidated when the connection is made to "real" dollars.