For those less knowledgeable about the volatility of Crypto Currency I figured this picture would be worth a thousand words to help fully illustrate your point further. Below is a picture of just 2 days of activity as it pertains to the must traded Crypto Currency on one of the world's largest exchanges of Crypto. The exchange Poloniex currently also has the highest traded volume of both STEEM and SBD, which it chooses to price seperately.
The currency in this illustration is ETC (Etherium Classic) because it has the highest trade volume by far. It's trade volume in 24 hours was equal to over 40,000 Bitcoin (or at current rate) = aprox $26.3 million USD. With in a 48 hour period the high/low prices fluctuated around 50% in just 2 days time. During a single 24 hour period the Price was still at a 33% variance in the high/low pricing.
Even 2 days can be an eternity in the world of Crypto. 7 Days may as well be 7 years if trade volume is high and investor confidence is unstable.
Try to imagine the following scenario :
You go out of town for a single day on vacation from work only to find out in that 24 hour period, upon your return all your money in your wallet and even the bank was worth 50 cents on the dollar...
Confused and afraid of losing everything you own, you settle with the market as is stands and sell all your shares the very next day. You're happy taking a 33% loss on your assets instead of a 50% loss. All of which you must live with because you decided to leave for a day or 2 on vacation, away from your computer and the world of Crypto...
The below picture is a real picture of the above nightmarish scenario on a real life exchange. The above scenario was not fiction but indeed fact as illustrated below.
You're correct that cryptos can be and often are quite volatile.
But Poloniex didn't just arbitrarily choose to price STEEM and SBD separately. They are two completely different tokens, with different purposes within the Steem economy. SBD is intended to be a stable currency with a value that tends to be very close to $1 USD. On the other hand, STEEM is more volatile by nature and not intended to be held long term.
Quite true. That much I did forget to mention. There is a huge difference between STEEM and SBD that may not be readily apparent for those who did not read the white paper. While SBD is trying to be pegged to the USD as close as possible, STEEM was never meant to be quite as static. Thank you for adding that to help clarify. :-)
but what does this mean? Should we all hold on sbd because it's lost value selling below 1$?
It's honestly a big guessing game right now. SBD seems to have stabilized out a bit, but is still sitting at about 17% less than 1 USD after being listed for about 10 days give or take. It's priced at about 83 cents right now on Poloniex after doing the math last time I checked.
STEEM on the other hand fell roughly 12.5% in the past 24 hours, but I have a feeling some of that was due to the hard fork a couple days ago. Steemit now makes you wait 7 days before SBD will convert to STEEM after a request to make the conversion.
now? steemit always request 7 days for a direct conversion....[ replying to the other comment