RE: The Reports from the Witnesses 2018-02-11
Do you know what are the ultimate sources of demand for SBD?
I remember you made a post about external services using Steem or SBD, and such services are not ultimate sources of demand since they sell their funds back.
For example Steem has the following real uses in addition to being a currency:
Voting power on posts affecting rewards, reputations and visibility, voting power for election of witnesses, bandwidth.
I am not implying I am for or against pegging the SBD close to the USD.
I am just asking if the SBD has any underlying value like Steem has, or is it just another currency?
If it is just a currency, why do some demand it so much that it went so high?
And do I remember correctly that combined with Steem, its annual inflation rate is what is described in the blue/white paper as the decreasing to 0.5%?
The value proposition for SBD is that it can be converted into “approximately one USD worth of STEEM” based on the blockchain rules. Any value beyond that is purely speculative.
The inflation rate of SBD is not static. It is based on the amount of SBD currently in existence, as well as the current USD marketcap of STEEM.
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