So, on the Steem Panel Discussion today we talked some about the state of the economy, and one of the points of discussion was the sudden spike in the price of SBD. There are many voices calling for Steemit and the witnesses to alter the economics and attempt to drive the price back to 1USD / 1SBD. There are good reasons to do that, but I'm of the opinion that we should enjoy the SBD being high, it's good and egalitarian for the platform, and the plan should be to do absolutely nothing about it. Not a damn thing!
Options I've heard
"Get rid of the SBD" - Literally stop having them be an option... hard to implement given that 3.6M are already outstanding, but it would make Steem and Steem power the only things on the platform.
"Print more SBDs" - Do things like allow 75% payout in SBD or witness production rewards in sbd. This should lower the price by increasing the supply. Neat ideas, but this also adds more SBD, which is a debt instrument to the platform and could have negative consequences down the road.
"Change the Bias" - This is a witness setting that works as a platform ratio, tweaking it higher can produce more SBD, but also weakens conversion of SBD into steem (and it's already a 90% loss if you convert). This feels like a band aid that isn't worth it.
"Let SBD be converted back into Steem" - this is probably the most popular option and it would allow a direct conversion of steem into SBD, which would allow Steem the ability to capture the rise in SBD price. I'm against this because I want the value going to the posters as opposed to the historic owners of steem power.
Overall goal
People want their account value to rise. As much as this platform has great values (moral) we also are trying to extract value (financial) from it. Naturally folks want the value of wallets to rise and that means Steem and potentially SBD rising in value.
I want the value of steem to rise, but here's my challenge. The distribution of steem is extremely warped. 93% of the steem is in less than 1% of the accounts. That's not a good distribution. Even feudalism didn't have that, and while I love nearly everything this platform I truly hate that piece of it. That's the distribution of Steem, but not the distribution of SBDs. SBDs are tied to author rewards more than historic Steem ownership and so the distribution of those can be approximated to this graph.
That graph doesn't quite show the whole story as it doesn't really show how many of those post rewards are created by the bid bots and that money then flows back to the primary steem holders, but it's one of the best representations that I have available. And it'll have to do. Bid bots are only about 5% of the SP so that graph doesn't quite show that @freedom and @blocktrades and maybe a few others are getting fat paychecks from this, but at least we know that it's not 25 accounts that earn it all on post rewards.
My option
Do nothing and HODL! The price of SBD will rise and rise a ton. that's because we're trying to fuel an internet worth of commerce with 3.6M tokens that barely change amount in a given year. So... those fuckers are gonna keep skyrocketing if we don't change it. Personally I like that idea. It's going to help this place grow. At some point you're going to buy a house with 10k SBD, and it'll be a nice house. This is a good thing for the posters on the platform and if we keep attracting posters to the platform that's ultimately good for the steem investors too.
Why do we have Steem and SBDs?
When this platform first started bitcoin wasn't at $15kUSD/coin. Most people didn't know shit about the space, and no one had any idea why we should be looking at these things. The creators of the platform decided at the very least we were going to need something pretty familiar to money used every day to have it make any sense. So, they created the SBD. This was also at the time when they were using vests, which most of you may not have even heard of and vests eventually turned into Steem Power on the front end (though vests are still used in the backend).
From the start SBD was intended to always be worth a dollar worth of steem, but free markets being free markets, have made SBD something closer to the following definition: a unit of exchange worth a minimum of $1 USD worth of Steem. Witnesses can mostly guarantee a minimum of $1 USD worth of Steem by using the fact that SBD is a debt instrument. The block can literally award people interest in steem as the currency for those holding SBD. So when the price of SBD dips below $1 USD the witnesses can raise interest rates to make it more attractive and award the SBD holders a larger and larger portion of the inflationary awards on the system until we get back to a 1USD/1SBD valuation.
A Peg
It was supposed to be a peg to make transactions easier on the web. Not only can you do fast transactions without any fees using SBDs, but you can rest easy that they are worth $1USD today of Steem and will be a week from now. From a merchant stand point what you really want is a stable currency. You want to be able to buy and sell goods at prices that don't fluctuate much. You want it so when you order cotton to make your shirt that there isn't a 10x swing in the price of cotton or the shirts as it's really freaking hard to run a business on that.
A major challenge to the price stability is the supply. There's only 3.6 Million of these coins in existence. That's like 1/7th the number of bitcoins. There really aren't that many of these suckers. So, it doesn't take a lot of buying activity to push the price up and up and up! Recently we saw a Korean exchange start trading Steem and SBD and since that happened they've purchased over $8M USD worth of coins, and we're seeing the effect in the price of SBD and steem.
So, free markets being free markets and with there only 3.6M of these babies in existence we're getting a spike. I'm not ready to call this a pump. I think it may actually be a new normal, and just the beginning of this depending on how the platform and the witnesses move forward. The supply increases about 23k/day right now, but they can also be destroyed through converting to steem (don't do this now or you'll lose 90% of the value of your sbd), promoting a post, or lost on the interwebs. So, if we do nothing I think the answer is that the price will continue to rise and rise!
Benefit of rising price
Post rewards are going through the roof. High post rewards (especially if we switch the condenser frontend to show the value in USD instead of SBD) will bring an assload of people to Steem, which will fuel more growth, which should push the price higher!
Fiat inflation wars
If you pay attention to politics in the world there's a lot of emphasis on currency manipulation. A government takes out a loan, and then they want massive amounts of inflation so it's easier to pay it off. Banks are happy with inflation because it's easier to get higher loan amounts and ultimately leads to huge amounts of debt payments. Big companies want low dollar values typically so they can export things more cheaply and capture return basically by devaluing labor in the country. The people that don't want inflation are the normal pleabs. Especially with flat wages it just means you're gonna have to take on a second or third job to pay your bills.
Deflation
The banks will tell you that deflation is horrible and the sky will fall, but if you're brand new here let me be the first to tell you that those bankers are assholes.
I want to hold a currency and wait a year and be able to purchase more groceries with them, which is the exact opposite of what we have now. This type of deflation is good for the people. It's great for the platform. It's gonna make posters on here millionaires.
The challenge of a floating SBD
This makes it a challenge to sell things with SBD. A strong currency hurts exports, but at the moment we don't really have any other than entertainment, so I'm not worried about killing a Steem car industry. So, for us, there isn't a down side to high SBDs. And we lost the peg... so what, there isnt' a ton of commerce on the platform anyway so who cares? Peerhubs exists, but they can just as easily list prices in USD which is relatively stable because of the volume of it, but still accept steem and SBD as payment.
We dont' have 8 million steem backed merchants, and the ones we do have already have tools to convert between USD, Euros, SBD, steem, btc, and all the other coins that they may have to deal in. My point is that the people hurt the most by a fluctuating currency are the merchants, but the good news is that we don't have that many, but we do have 30k active users looking to earn money by blogging. So, let's help them!
The skinny
The short answer is that we're not really hurting anyone with a high sbd, it's going to attract new people here, and it's nice to get paid in a way that supports the active community rather than the original steem holders, which don't have a nice distribution in my eyes.
What's my conclusion?
Don't do shit. Don't print more sbd, don't convert back and forth, don't change the bias. Do write and post more and enjoy the rewards, do change the website to display in other currencies, do enjoy having a strong dollar, and enjoy being able to purchase other coins more cheaply from highly rewarded posts.
What if SBD crashes?
That's different. I would support raising interest on sbd to support a $1 point again so that we meet the promise of a minimum of $1, but I'm pretty sure we shouldn't do anything to change how SBD functions and just enjoy the ride and high price.
I am not really opposed to “do nothing” at the current point in time, but I am not taking some of the other options off the table either. High SBD is good for all the reasons you state - and I totally agree, but the problem is when it goes the other way. When SBD is not being pumped, the main value proposition is that it is a stable currency. If that is no longer the view of SBD in investor’s eyes, it could unfortunately cause things to go the other way. We do need to make sure that we hold on to that, although a stable currency that occasionally has spikes up to 10x does not seem that bad of a value proposition either :)
SBD was meant for being a stable currency and it should be a stable currency. It would also question the legitmacy of SBD's purpose cause it was always meant to be a stable pegged coin.
By the way, authors are loving the SBD to the moon. ;)
SBD is great for the usage of Steem but no pegging will definitely reduce stability. However, this is crypto so I guess the default is to let it destabilize and deflate.
😕😎
I do, but it makes quite a quandary for the fledgling author. I want to convert everything so that I can get more power for forum use, however the constant rise means I also want to hang onto it because of trading out too early.
a stable currency should be a long term goal but when the amount of coins is limited is that even realistic? Since steemit and steem are in the early stages, how do you peg that when we have millions of users and investors AND it's limited in amount? Forgive me if my economics are lackinghere..
I think the long term goal of two currencies should be to keep one stable so an economy can grow within the platform.
BUT that isn't much of a priority right now as that inner economy hasn't yet developed much and the current situation is GREAT for minnows like me, and for the platform as it's creating a healthy middle class.
So I vote "do nothing" for now and set up a kind of "gradual stabilization plan" if this is possible. Is it possible to "print more steem" or is that something we can't or really don't want to do?
Thanks @timcliff and @aggroed for trying to represent so many users concerns.
That would require a hardfork. No sane guy is going to do that to just peg SBD. Of course insane ideas like mine could promote something like it when I called for a hardfork when zeartul scammed people. Lol I was just making a point but we are not going to do anything likethat. Are we @timcliff ;)
So, we can't print more steem out of thin air. Daily about 20k SBD is printed. That's a very low amount to peg it now. It has gone so high that it will take at least a week to go back to its original price.
In fact, SBD might stay high for a much longer time if the pump kings keep on increasing the demand.
I think our views are pretty much in alignment. The proposal to allow users to create new SBD tokens by running the 'conversion' process in reverse is basically the way to address the supply-side problem.
I will start by pointing out that I am new here. But the conversion being only one direction has really confused me. It is not explained anywhere and with the rise of SBD in past week well it just muddied up the waters even further than they were for NEW people like me.
In the article, the author states that he does not want the conversion you are propossing because he feels the SBD gains should go to authors and not STEEM holders. I think this is quite a flawed argument because it is possible for someone to convert steem to btc then btc to SBD. So by making the transfers seamless by implementing bi-directional trading through steemit this would allow for the gains seen in SBD be be more evenly distributed across the two currencies.
The way I see it, Steem should somehow be attached to the SBD price. Not sure how we would implement this kind of mechanism but when Steem rises 10% so too should SBD (Vice Versa).
This environment is still new to me, so I could be completely wrong and not understanding the economics properly.
The point about it benefiting new users is that for most people, earning SBD through author rewards is easier than buying STEEM (or SBD) for real money. As long as the price of SBD is higher, users who get SBD rewards will be able to afford more STEEM for the same amount of SBD. Example - right now, SBD is trading for about $12. If you wanted STEEM, you can get $12 worth of STEEM for every 1 SBD that you earn.
No, your economics isn't lacking.I'm a PhD economist, and in light of Venezuela's announcement, I've been trying to figure out exactly how you could peg a crypto.
The only way that I can see is to would be to disallow trading on external markets. In other words, Steem is traded on exchanges, while SBD can be sold only on steemit for exactly $1. (And the conversion between steem and SBD also only occurs only on steemit).
You can check my wallet it you like, but you might discover that there are outlets for the SBD (and STEEM) tokens elsewhere. Try Poloniex if you dare, but I happen to have just tried out Bittrex. It's a bit hard to get setup, but I am already getting fiat US Dollars into my bank account from a few SBD coins at around $11 USD per SBD. Learn how the exchanges work and you can make real money and profits this way.
Exactly. And as long as it is true that you can convert SBD in an actual market, there is no way to control SBD prices to make sure it adheres to a peg. (And I 100% agree with your Poloniex evaluation, it's down there with Kraken. I don't understand why they have so much market share given all their glitches. But that's a topic for another day).
Woot. You'll have to excuse me while I rub someone's smug little face in this comment.
thanks for this :)
Wow, I never expected an economist to think in line with me on economics. Today was a good day. X-D
SBD can be traded for BTC on Polo 🤔 ....?
If you read the first sentence of the paragraph and last sentence of the paragraph as well:
The fact that SBD is trading on other exchanges, like Poloniex, is why its price cannot be fixed at $1.
It's like you are also making a point here. I would like to hear more
In January I'm hoping to start doing bi-weekly posts explaining the academic literature that's been published around cryptocurrencies and cryptoassets. Since I'm interested in the international market aspects, I suspect that a discussion of pegs will make its way into one of my posts sooner rather than later.
I get why it’s worth a lot (it’s similiar to ebtc) but I think increasing supply is the answer. The 75 pct reward option. Seems perfect.
yes. I also think that the increasing price of SBD is really good for all stemian. because as increase in price of SBD then obvious acount value of steemit member increase. Steem and SBD are both cryptocurrency is important for all stemian. So like SBD, Hopefully price of steem will be increases.
It's temporarily good but in the long term it is not. SBD is not meant for being that high. It's called Steem Dollars for a reason. It is supposed to be pegged to 1$.
I chose to post my comment here so everybody will see. The world is a greedy place already. People tend to love what mostly benefits them. For the minnows, the rise in sbd is the most happiest thing to them.
For some of the whales,oooops they've already got lots of steem, so sbd rise is not something they'll be happy about. That'll want steem to grow instead of sbd.
Monitor the comments on this post and you'll notice what I'm talking about.
Those with more steem will want steem to rise and sbd to go low.
Those with sbd will clamour for the price of sbd to remain as it is or go up.
It's just what humans do.
Nice article.
Happy Steeming
And what prevents the SBD to be fixed currency, but with the price of $10? :) Yes it may sound illogical, but on the other hand, fiat money works on the same principle constantly changing in price relative to each other, and even their equivalent in commodities is constantly changing. Even gold may vary in price, although it is considered a standard. Pump cost, for example every six months is normal. I think more harmful is to force the lowering of prices, which again can jump. Such a scenario definitely rules out the concept of fixed currency.
That makes no sense. Do you want a stable currency? Or one that spikes by 10X? Those are mutually exclusive.
If SBD could be a stable currency over the long term, but occasionally have a spike - I think that would be OK.
I dont think so. If u cant trust the peg its useless.
Think about people that want to use sbd to be able to plan and manage their cost ?
Not exactly true. A minimum-peg guarantees the lowest price, but lets the currency go up as high as it wishes (a minimum peg from one perspective is a maximum peg from another. For the purposes of this response I'm using the minimum peg terminology to mean that the lowest SBD price is $1).
From that perspective, if the ecosystem can guarantee you that the lowest price you'll ever receive is US$1---but you may get more---is arguably is as good as a system that guarentees that you'll only get US$1.
Very true
SBD is not stable currency because its price increased suddenly.
It has been stable for a long time,
Just because people buy in for insane prices. Means that they probably didn't read the whitepaper.
Something has value when enough people want to buy it. Maybe the overall market is larger than the original ideas about creating a Utopian currency detailed in the white paper.
Basically if you look at it from a Perspective completely outside of a Steemit user the White Paper is essentially a plan for artificially suppressing two currencies (Steem and SteemDollars) in order to maintain a Pyramidical system of control.
Steem is artificially devalued by nearly 10% every year and SteemDollars are "pegged" to the US Dollar. Both of those concepts are essentially nuts. So you have an innovative BlockChain Social Media network where it's internal trading currency (SBD) is pegged to Fiat currency. Go figure. Pegging a Crypto currency to a Fiat currency is an Oxymoron right?
By volume Steem is one of the largest established Crypto currencies and is the only one that is being artificially suppressed and devalued. If it wasn't artificially suppressed then just on the value of Steemit having so many active users and being part of the Steem BlockChain the true value of Steem should be way closer to Bitcoin.
Maybe letting Steem and SBD rise naturally would actually be a lot better for Steemit users as a whole.
SteemPower is already locked in. Why do Steem and SteemDollars therefore need the artificial constraints? Why can't they just be traded naturally on the marketplace.
I think that the reason why both SBD and Steem have been devalued and suppressed all this time was to give an incentive to the whales to sell the coins. If you look at https://steemwhales.com, you will notice that very few users control the vast majority of the coins, and that is not a good thing for Steem as a platform.
By keeping the price of SBD high and Steem relatively lower for the medium term, the small minnows will at least get a chance to acquire more Steem Power by selling their author rewards in SBD and get Steem to powerup, which would improve the overall distribution of wealth on the platform.
Agreed. Also most of this will be solved with SMTs, since each SMT will have it's own distribution.
I totally agree. There are many, many Steemians, who provide high quality content. Additionally, the time stamp is default equivalent of a copyright, patent, registration, or trademark. This fact alone should be promoted more, and also makes content on STEEMIT very, very valuable.
Therefore, undervaluing STEEM and SBD is likewise undervaluing the content providers. This condition must be changed, whatever it takes.
yes. you are right. thanks for comment.
I really like this post as it includes historic analysis, financial facts and is written in language, I think is understandable even to a person who is not financial pro. dealing with higher SBD price, that's nothing special, as "Korean exchange start trading Steem and SBD". So Steem and SBD became "Hotter than two hamsters farting in a wool sock" :)
(southern US saying). When something is massively bought up, it becomes more rare on the market, right? Everything gets high in price with its rarity. If gold would be bought up, it's price would sky-rocket. And same thing happens with anything else on the market. This way of trading is old as it can be.
true.
the idea of a stablecoin isn't supposed to do stuff like this !
in this case we luckily experience the benefit side.
mmmmmmm
not sure what u ment
Great argument. Completely agree with it.
I'm in favor of switching the condenser frontend to show the value in USD instead of SBD. Just seeing the actual monetary value of a post encourages people to create high-value content.
I agree with this or at least make it an option to toggle a national currency. I have blogged for over a decade and have not made anywhere near what steem is bringing in now that I post my work here. I have always advocated people to make the best post they can. But when it feels like no one is reading and the creator sees no monetary compensation they tend to quit or make low quality posts.
Hello @aggroed, thank you for this well written post explaining the current situation with SBD. I agree on all points regarding the benefits of not changing anything with SBD at this point in time.
This spike in price should indeed bring many new users to the platform, and will spur adoption on the platform.
Once the platform develops and matures, I think the free market will balance the price of SBD anyway. And if SBD (deflationary) becomes the holding currency and Steem (inflationary) the spending one, I am fine with that as well. I do not think many are hoarding Steem. Most convert their Steem to SP anyways to earn and give even more SBD for each upvote!
Keeping a peg on a currency is no easy task in a free market with supply/demand forces at play. Even Tether prints a ton of new Tether just to be able to keep the price relatively close to $1 USD. But that is a topic for another post all together.
Steemit Inc. should focus on building a great blogging and social media platform. The economy that will grow upon the platform has to remain free, so I think the free market should set the price of SBD and Steem, and a the only peg that is needed is to guarantee the minimum conversion of 1 SBD = $1 worth of Steem.
For merchants on Steemit, there should be a way for them to set a price in USD, and the users have an option to pay in Steem or SBD. Hence a volume weighted average price of Steem and SBD across all major exchanges should be tracked and part of the conversion calculation. In this scenario, a peg would no longer be required.
Please let me know what you think.
Thanks for the good insight.
Btw, everybody is mentioning that changing the bias can increase SBD supply, but I couldn't find the source of the rule. Could you give the grounds for it?
I must say, it's certainly nice to see the rise in SBD. I'd like to see Steem follow suit.
Um, I disagree. It's just a pump, we had that before and SBD went back to $1. On top of that poloniex doesn't account deposits and withdrawals. They just hold 600,000 steemians SBD and probably do inside trading with them. Once they can't earn more, they will allow SBD transfers and huge amount SBD supply will hit the market. Also on Bittrex the price jumps +50% within seconds. It's just a market manipulation, that's all.
If SBD can be trade in open market and we don't have a lot of it, high demand will pump the price.
It is objective to wish SBD price stays around one dollar.
If there is a way to control it, I am for to lower it down.
Cause we do not want chaos when the price returns to normal.
Keep on learning and steemit.
I rarely check 'trending' these days, but in this case it was worth it: you delivered some interesting food for thought. Actually, I always sell my SBD in the market to get as many STEEM as possible, but your strategy just to keep your SBD may work as well. Anyways, I also would not try to influence the SBD markets as long as one SBD is at least worth one US dollar.
I too sell the SBD's just as fast as I get them for steem and always thought this was a good plan during these times for the high rate of return? After reading this though it makes me wonder? I may hold on to some SBD at this point and see what happens even thought to me the exchange rate for steem is ridiculously good I suppose if one is in it for the long haul sell SBD for steem and power up or am I wrong at this point and time?
In case you think that one day STEEM has the same or even higher value than SBD again in future, of course it is reasonable to buy STEEM from SBD now.
If you believe that the value of SBD will even increase compared to the value of STEEM, then you should keep your SBD ...
And if you're not sure a balanced portfolio of both is totally acceptable.
I agree with your conclusion however, have you ever given this a thought - get rid of delegation - I do think this is whats causing the price of Steem to be so low
why on earth would one buy in the market if they could just rent it here without them knowing they're being charged rent fee sometimes so high up to 24% higher than the 10% the banks that they hate charge them per year .
comment upped for visibility
I think they should try and take a good look at that one too
I certainly do not mind the continuous rise.
Is there any consensus among Steemians on what is actually causing this spike in SBD? Is it Korean investors?
Great post. I believe that we should allow SBD to spike sometimes, BUT it should be stabilized at 1$ for 98% of the time.
This way we can all hold SBD and when the occasional spike arrives capitalize on huge profits
Not a terrible idea. I just worry that the steps that could be taken to lower the value of SBD may get out of control
You make a pretty good case. I was one who wasn't happy about the broken peg but your argument that it rewards posters over holders of SP is a strong one.
Lets hope some good content comes of this.
Nice post Agree with you in many thinks ;)
@aggroed I completely agree with you and you are always on point. There is no reason to do anything about the high SBD as it's not really an issue. It only helps us grow stronger as a platform. Think of all the lives this platform has changed. All the people in underdeveloped countries earning a ton of cash through steem.
Whenever you fuck around with a marketplace it smacks you. I agree with you, just leave it be and let things take their course.
If the Steemit community keeps artificially suppressing the natural rise and flow of SBD and Steem then it ultimately dooms the platform to being less successful than if the underlying Crypto currency takes off.
As it is there are already too many artificial constraints and it's already too complicated. The idea of SteemPower being locked in to prevent speculation and encourage posting is a great one, but the notion of automatically devaluing Steem every year by 9% and the notion of pegging SteemDollars to the USD are completely daft.
The Steem blockchain has three beautiful birdies. It desperately needs to let two of them fly free. There's nothing to lose, Steem is one of the top 5 Crypto currencies by volume as it stands. It could be the next Bitcoin, but not if the artificial suppression keeps happening.
I totally agree with your sentiments. It actually makes me uncomfortable that this is even a discussion. Part of the reason I was drawn to steemit in the first place was the idea of mining through content/curation. By manipulating the price, you're effectively diluting our profits. Let's face it, in addition to earning SBD, I want those assets that I earn to appreciate as well. That's a huge draw to the platform.
I agree. Sorry I didn't reply was away on work. It's really interesting looking at it in perspective a week further on, what I'm seeing is generally all around Steemit people are now getting higher value payouts for content, so that's the win of letting the market take over. Steem Dollars and Steem are both very consistent risers on Bittrex and not as prone to the Alt Coin traders who manipulate the curves on the other currencies which is the benefit of such a huge Steemit userbase. So one week on the benefit of Steem and SBD rising in dollars is better payouts for Steemit's internal content creators. That has to be a win for the platform as a whole.
Hell yeah am gonna buy houses with SBD 😂, awesome post,however things should be handled carefully at this junction. I believe balancing things with steem and SBD should be considered not at once but at crucial times
I totaly agree with you. At this point of time I don't think we need to do anything yet. The high value fules the authors of the platform right now, and this is what we need. But in the longterm there should be some solution for a stable SBD value.
Insightful. I think I'll just follow your advice and HODL
mmmmmmmm
Mucha información que no manejo. Pero gracias por intentar desglosar dicho contenido. También creo que al traducir el texto cambia un poco la esencia de lo que explican con el idioma original.
Till then let's enjoy the ride, as long it's on high
Tebrik ediyorum seni @aggroed. Gecen gunlerde @bahadirk ve @ebruaydogdu ile ayni kinu izerine konustuk.senin de bu yazin tam ustune geldi. @steem icin onemli bir kullanici oldugunu soyleyebilirim. @crypto nun gunumuzde onemli oldugunu biliyorum. @witness , @sbd ve @cryptocurrency hakkinda yazdiklarin da oldukca basarili. Zaten senin postlarin hep cikiyor karsima. Bu da ne kadar kaliteli surekli ve seviyeli iş yaptiginin gostergesi.
Ugraslarin ve buze kazandirdiklarin icin tesekkur ederim
Basarilarinin devamini dilerim
@aggroed şunu bilmelisinki @spyking öyle her post a yorum yapmaz. Eğer sizin paylasiminiza yorum yapmışsa bu sizin paylasiminizin kalitesini gösterir.
Tesekkur ederim yorumunuza...
Step 1: Do Nothing. Step 2: Profit.
ohh. really good thoughts. this picture says everything that you want to say. thanks for sharing this comment.
yes yes yes yes!!! right on. leave it be. free market.
Free Freedom!
yes free
Tough call. SDB being higher in value than Steem attracts new authors who see the benefit of not just s#itposting like a tool. Granted, Things like leasing steam delegation would still be useful, but not nearly as rewarding for new users of Steem (like myself, despite my join date) if buying Steem power delegation only gets a fraction of the benefits that it does now. Is this the cause of SDB increasing in value? no, as you can lease delegated steam power using Steem or even other coins just as easy.
I don't see the downside of a higher priced steem dollar whatsoever, as it promotes healthy participation (as long as people spamming plagiarized content 24/7 don't get any rewards), and not just the speculative types hoping for the price of Steem itself to go up. You want Steem to be low in value to get people to lock into Steem Power, and thereby participate on some level with the platform and build up the quality instead of quantity of users.
High sbd price = Higher pay outs = happy face :)
V useful insights. Thanks for the panel discussion today, as well as for this eloquently formulated thoughts.
It there not one big problem wth the peg SBD to USD: That the value of USD decreases continuously for bankster reasons we are familiar with? That's the bit I am concened about.
Value of USD decreases and increases relative to other currencies...in other words, the value of USD doesn't decrease in a vacuum, and changes in the dollar won't affect the value of SBD. It's hard to understand but the Balance has a good explanation https://www.thebalance.com/value-of-us-dollar-3306268 .
I personally don't see a problem with letting the value float. As in, not pegging to the dollar.
I'm still not exactly sure I understand the economics of steemit, but if I'm right that SBDs are backed in STEEM, there's zero structural problem with letting SBDs float. Whenever SBDs are more valuable than dollars, and people know about this, they'll use the platform more. Whenever SBDs are less valuable than dollars, and people know this, they'll use the platform less.
Meanwhile, we can take advantage of high SBD prices to acquire steem or steem power, and take advantage of low SBD to convert our STEEM or steem power to SBDs. The supply of STEEM is fixed -- it's not like anybody's going print more STEEM -- and as long as that's the case, the markets will, over time, probably swing back and forth.
(Assuming I understand the economics of steemit...)
If SBD isn't going to be pegged at $1 then there seems little point in it existing. It was supposed to be a hedge against STEEM price fluctuations after all. SBD should be working like Tether and USDT, backed by USD one for one. I want to know why that is the case as clearly only the increases in SBD is driving the spike in demand and price. Let's here's all the demand driven price increase in STEEM which makes sense. So that by fixing the pegging, or removing SBD entirely or using a fiat pegged coin that works eg. USDT.
Ok, I'm in for do nothing for now.
If we could get the conformists, sycophants, and ass kissers to stop ganging up to disadvantage the rest of us, that would be nice.
i like sbd rise too and idea to buy house with 10k sbd, sbd rise is good for all
It'd be great right?!?
Wow great post. Just what I was looking for. I haven’t been active on steem lately but the high sbd drew me back in.
I recently purchased a little ebtc because in theory if value is tied to hashing power, then ebtc can track the hashing power (or staking power) of the ethereum network. I completely missed this same dynamic is true of steem dollars.
If steem dollars have limited supply( because they are created slowly and sometimes destroyed or lost) they are backed by hashing power of steem platform which is growing exponentially. Of course the value of sbd will follow the same dynamics as ebtc or bitcoin. I feel kind of stupid now for using it to increase my steem stake.
I am so new, I'm still taking in so much info... Learned a lot with this post... Great writing, thank you for that! I look forward to posting quality content that people read...
(it's not spam if I drew it, right?)
@aggroed - Take it from somebody who falls in that 93% - I really don't mind SBD increasing dictated by free market economics. It's hard for somebody new without a large following ( and expecially those new people who aren't pretty-young-things to get a following and readership on steemit - that's reality ) .So it's hard to earn steem despite being a regular participant and contrivbuor. Therefore, whatever little SBD I earn is a big plus for someobody like me and the higher it is valued, the better. It is an unequal economics but I'm not complaining even if I get the crumbs falling off the plates of the whales, till the time I get better readership and followers.. It's better than nothing :)
Enjoy my phat ass whale up 0.30 upvote. Now I know how it feels to be a whale!
I always sell my sbd, if it's over $1 I sell on Bittrex. If it's under $1 I just convert it instead so I'm gauranteed that $1
We could enable powerdowns in sbd at the internal market price.
This both improves the distro and incentivizes the early adopters to leave.
If the recent news about the Koreans not being able to use bank accounts for their cryptocurency is true (we should hear from tomorrow onwards if this is indeed thecase), then I think all the recently bought up SBD will return to the market and the price will drop accordingly
As a fairly new user (just over a week) I can safely say that the whole thing witg steem/sbd/steem power/vests is terribly confusing. I'm starting to get a grasp of it now that I've received some rewards but it's still a bit murky, and the FAQ only goes so far to explain.
For now I've just claimed my rewards, however minor, but I am not planning on transacting on them until I properly understand it all, completely.
@farq I am also new, but the thinking is that we are here for the long-term, so just collecting SteemPower and not worrying about cashing out or whatever.
Steem is a great community, based on blockchain and cryptocurrency - blogging platform, reddit + cryptocurrency - what more can you ask? :)
Pretty sure that over time everything will become clearer and at beginning it's not just all that important..
Should focus instead on learning the platform, not getting too overfocused on rewards, financials ... because that's not the primary drive.
You are not going to be part of community only because of rewards, drive should be somewhere else, no? :)
That's smart. If you're brand new I would suggest selling SBD on the internal market for Steem and powering up. That will help your long term prospects here.
If someone is little - I think they should lease delegated sp until they are at least 500 sp total. We need votes with weight down here in minnowland.
I started leasing at the end of August. My first two months were needlessly hard. As soon as I leased delegated sp - everything changed for the better.
If you have 60 sp and go to 80 by buying sp - you are still nothing. If you get a few hundred sp for that same money - everything changes and you become a big fish in this place even if you are not. The big people come down and vote for minnows with weak power - my vote if often higher than big names here. I'n not sure why someone would want to spread the money so thin - 8 cents each to 100's of minnows. My 20 cents crushes big guys often and did when it was even less.
Thrilled with the price change though and more than doubled my account value in this episode.
So right yo are. I too wonder why people with so much sp hardly interact with new usersor vote for them. I have got a one cent vote from high end users and it really disappointed me.
Supposedly, you need to go in and kiss up to the whales - get them to notice you - and then try to get on their bot. I don't think that is usually too successful. Go look at whale posts and you will see they get hundreds of votes per post. A good portion of those people are trying to get that particular whale to vote for them.
But I do know two people actively chasing whales and doing VERY well with the kiss up strategy, so try it if you are that type of person. I did not believe it would work but it does. I'm not a nice enough person to do it - too blunt.
Some of them hang out in chats so you can go in there and beg for votes or whatever it is people do in there. I have heard this works, but I don't use chats at all so I have no advice.
The whales are in the position of being few yet having many that beg them for votes. You will just be another beggar going that route.
My advice is to interact with people higher than you - but not that much higher. Most whale votes are low on the slider, so you are not going to get a huge amount anyway.
You can go beg for one whale vote of $10. Or you can interact with many down here in minnowland and get those votes to add up to $10. Hopefully we all find a happy medium. And as you get a bigger and better presence here - bigger fish will find you naturally.
Also - many whales delegate sp. So you are getting a vote with a piece of whale power, but you just do not know that. Others are involved in projects that don't give them time to come out and browse.
I decided to ignore the whale situation here and deal with those who are lower on the scale. Slowly, things are getting better for me and now with the price going up - it's getting better still.
Thanks for your take on this. As you can see I'm totally new here, only lurking around for now and trying to soak up whatever I can because it's a bit more complex than it initially looks.
You cleared up the vote weight scenario quite well for me, I didn't really get it before.
Stop lurking ! Comment just like you did with a good comment and people will upvote you for your learning.
Read this post for tips and read and comment comment comment. You need to earn some little bit of sbd now, trust me and go after author rewards :)
Ask questions to me anytime and I will most definitely help you again. Good luck - you are here at the right time.
Make Money Blogging on Steemit Top Tips and Checklist for Better Results!!
I agree. I love the platform and want to create value in my area of expertise. The rewards are motivating! Steem on!
The problem is if you give too much power to newbies, you're just enabling spam and people shitposting and upcoming themselves with various accounts.
Even though I'm still relatively inexperienced, I can see the merits
A good bit of advice @fitinfun I tried this via communities I accepted invitations to join. Once in a community, I felt I would like to support them, as they would be assisting me as well. It is all a learning curve.
Adding to what has already been stated in many places, prepare original content and when invited to join communities, join you learn a lot from others as you slowly grow.
You see, that suggestion may very well be the correct action to take, but that information isn't very clear to new users like myself.
I will consider doing what you've suggested in a week or so once I've accumulated more reward.. thanks :)
I think the correct suggestion would be sell the SBD on the open market, take the dollars and buy when more STEEM than you would have been able to before. Converting directly to STEEM in the platform is just throwing money and Steem Power away.
hi. good suggestion. but it not help to all. i think we should buy both steem and SBD. thanks for sharing your suggestion. What you think about my opinion? thanks.
I was responding to a comment about what to do if you already have SBD. Converting it now to STEEM on the internal market is a bad idea right now. You'll get 1 STEEM per 1 SBD. Use the external markets and you could get over 5x that of STEEM as of writing. That is what is most beneficial to a noob and to the platform since we want more STEEM powered up and they want more STEEM power.
I would not buy any SBD on the open market right now.
For publishing I would definitely use the 50:50 SBD and STEEM option which will maximize your ability to acquire STEEM through external markets.
By powering up you are locking down your steem and it takes 13 weeks to get all of it again. 13 weeks can be a lot in turbulent times, if for every reason someone wants/needs to cash out. So powering up is not the only option available. In the past steem never ever reached the performance of BTC, so all steem hodlers had so far huge opportunity costs! Lets not forget this!
Believe me, I feel your pain. That is the main gripe I have with the platform. I've looked at FAQ's and posts on here and still am confused about the interaction of the 3 currencies, especially how SBD and Steem can be traded on exchanges like Bittrex. I don't even see an option for depositng to my Steem or Steem Dollars account even if I did purchase on Bittrex. If this platform wants mass adoption, it needs to both simplify the process and provide literally "watered-down" explanations or videos. The "average Joe" would come on here and just give up, honestly.
Totally agree with you @aggroed, and that part where you say "The distribution of Steem is extremely deformed. 93% of steem is found in less than 1% of accounts. That is not a good distribution. "The truth is that this should be modified little by little, maybe some fish that you refer does not suit you, that the SBD has more value, it benefits us a lot, it motivates us more and it gives more value to the work that We do in Steemit, enjoy the free market and as @aggroed says continue to do our bloggers work that we like so much in this great platform.
As a newer user to Steemit this article taught me a lot of things. I didn't realize the relationship of 1:1 has a soft padding to ensure it doesn't dip too far below that.
I'm not really sure I see a downside to the high value of Steem. It makes the platform more attractive for professional original artists to join the community. I think the goal should be to empower creatives, writers, thinkers, people all over the world, etc. The high value only helps that.
I agree @littlezebra, welcome to steemit - heres hoping they hear us!
The problem is not with high value per se, but with the associated fluctuations. When a currency fluctuates in value, people stop using it for transactions and start speculating on it. Similar to what is happening with bitcoin.
I'm still trying to figure out the difference between STEEM, SBD, and SP. Could someone explain the difference in simple terms? What are the pros and cons to holding each one?
Steem is the crypto currency, sbd is a debt instrument that promises one usd in steem, sp is vested steem requiring thirteen weeks to fully redeem and is what gives your vote value.
If, like now, SBD goes up a lot more than Steem in value, and you want to covert it into Steem, do you get more Steem? Or do you lose value?
I would hang on to the sbd, just to see if it rises, even more.
If you are long on the platform then I would convert on the internal market and power up.
We are still very much at the beginning of this ride.
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I agree keep this way it makes the whole platform more valuable. Why nerf something that wants to go up in value?
Exactly, would much rather make more money now than have a stupid stable value. I don't care about how volatile it is if i'm making money.
Yerp
Another excellent article!
Thanks for putting your efforts in preparing such a useful post and guess what? I can't agree more with everything you said above.
The reason why most of the people are using Steemit is to make as much money as possible. If the peg is broken by free market in positive way (offering premiums), the community should do nothing but enjoy the rewards. I mean, who doesn't like to gain more than what was expected? We are holding Steem because we hope to see its value multiplied by x10 in future. And if we are getting same benefit by SBD then there's no reason to touch and try to modify the free market except when there is a possible harm expected.
After all, Steem is also benefiting from the high SBD price. If there was not SBD pump, I am sure that Steem wouldn't be trading at nearly $2. The SBD pump drived the price of Steem and before that time, Steem was suffering a lot. It was hard for Steem to go above $1.10 and suddenly we noticed the price increase. I believe that everything is good if there is no harm in current situation. As far as I can see, high SBD price means people will be able to power-up at discount. How it can be a bad thing when people are loading their Steem for powering up?
I'm with you!
@aggroed Just let the price of SBD go whereever it wants to go to. I am not in favor of any intervention. A Truly FREE MARKET is one without decisions and Govt's.
Whatever the future lies ahead, let the free market shape the SBD/Steem/ SP power and its conversion. For sure there will be a time that decision will be dictated by the free market demands.
Lets just enjoy this moment!
Baby, let's just let whatever happens... you know.. happen... we'll see where it takes us and we can figure things out tomorrow... until then, let's just enjoy tonight and the high SBDs.
By ditching SBD in favour of Steem should result in higher prices of Steem which, in the absence of SBD, benefits both posters and historic SP holders. Obviously that only applies if the 50/50 principal is applied to the Steem rewards, split between SP & liquid Steem.