I hope you didn't just call me an unethical scammer that has no conscience and therefore can't sleep at night, haha (laughs nervously). In my recent post I talked about this subject from my perspective and I didn't think I was being dishonest in any way. My concern is that if there is a sudden peg to $1 USD it is going to make people go away and we already have a problem with retention. This move would make it worse. I believe the markets will do what they will do and I am not trying to artificially sustain higher and higher prices. In fact, I stated the following in a comment on the same post in response to a reader's comment.
I love SteemIt and want to see it grow, so I would support any strategy with that in mind. Even if it hurts me in the short term, but ultimately benefits the masses that contribute to the community.
I feel the exact same way. I may be wrong about this and the peg could be better for Steem in the long run. I am willing to take the hit if that is the case but as I stated in my post I believe there would be a huge effect on user adoption in the short to mid term.
I am just asking the powers that be to consider the impacts of artifically re-pegging it back to $1 USD, especially in a short time-frame. In a couple of your comments, you have stated that you think SBDs could be re-pegged at a higher USD amount. I really like that idea. It does appear that you find some value in receiving the higher payouts. I figure the markets will do what they do. The high prices certainly was a surprise. I may not completely understand how this ecosystem works; I am not sure if I followed your explanation of how SBDs are destroyed. Are you saying that the only way SBDs are destroyed is when authors choose 100% Steem Power as their payout selection? Honestly trying to understand and not be a jerk. What I do is take my SBDs and sell them on the internal market and then use the Steem to buy Steem Power. I have consistently been getting more Steem per SBD over the last few months and to me that is really the advantage, while it lasts. It appears that is what you are doing as well. I didn't realize we were creating so many SBDs and they aren't being destroyed and we are in essence, flooding the market. And, like you said, as the price of Steem goes up, we will begin to see more and more SBDs produced and the price is likely to come back down. I support pegging it at a higher price. I'd gladly have it pegged at $2 or $3 per SBD. Just throwing out a number. Thanks for providing your perspective. Again, I hope that I was not the sole inspiration for your post, I am learning as I go. I want to earn Steem Power and help secure my financial freedom and that of those that choose to associate with me.
No, steem has an option where you can "convert", destroy 1 SBD and create $1 of steem. It doesn't show under your wallet on steemit right now to protect folks.
Thanks, that's weird, I have never seen it.
I almost used it when I first switched off 100% power up when sbd first started rising. Thankfully I saw someone with an all caps warning to use the market instead.
Oh, okay, I think I actually know what you are talking about. Is it that process that takes 7 days? I did that a few times until I discovered that the internal market is much quicker and apparently offers better price conversion.
3 days I think, but yes that's the one.
Yes, but its that locked in price conversion that provides the floor. If SBD ever goes below $1, you could buy it up and convert it for profit.
No, I wasn't talking about you mate. In fact I wasn't trying to point the finger at any individual.
It was more a comment directed toward the Witness ranks who really DO know how this stuff works, or at least SHOULD know how it works. I think there is a temptation there for them to play populist politics to get votes by playing up the popularity of the high STEEM DOLLAR, or take away votes from Witnesses who are trying to do the right thing by the platform AND the investors by looking to address this issue with a long term view.
I already know for a fact that some Witnesses have lost votes over their stance on the SBD situation, so it pays to reason that others will have gained.
Ok, sorry for my big vomit of a comment about it. I agree that the witnesses should know exactly how all this works much more than a minnow like me. I didn't know there was such controversy among them about the subject. If big merchants like Starbucks really are considering Steem as their crypto for payments, I'd be glad to have The SBD pegged to $1 USD if that's what it took to get them on board!
We can only hope to attract a big merchant like Starbucks, but the argument is that they probably wouldn't look at us until we have our house in order so there is an opportunity cost to let this SBD situation run. There is also concern that a big bubble and crash of the SBD could really hurt the platform credibility and reputation in the fallout.
Don't SBD's also get destroyed when you promote your posts under the promoted section?
Yes, I believe that is true. A very good point and might be worth adding that to my query.
That burning for promotion means advertisers have a reason to buy a lot of SBD so as to have tokens by which they can advertise on Steem as a whole going into the future. Promotion as a function hasn't been developed out to it's full potential but that is because we don't even have a million users yet. Developed to it's full potential then how much could SBD be worth?
Ok, it sounds speculative and I have a healthy scepticism that it could be the root cause of the pump, but I'll concede it's possible. Let me sleep on it for a while and see if I can come up with a way to validate or quantify (or debunk) the theory.