I see many posts of people wondering what is happening to Steem Dollar price and why it is so much higher than the expected 1 US Dollar.
I think SBD to USD price parity is broken because there are only about 3.5 million Steem Dollars in existence and no way to create them at will.
Such a small amount of SBD in circulation is the reason price is easy to pump with relatively little amount of money.
While there are about 246 million of Steem in circulation and it takes more money to move its price.
Solution to this problem is to allow for easy creation of new Steem Dollars by putting up Steem as collateral, similar to how BitUSD is created in Bitshares. Notice how much better BitUSD has been at keeping price parity to USD despite huge changes in price of BTS, which is used to back BitUSD with.
If you agree, you can support this proposal and track it's progress here
Improve SBD to USD price peg
My opinion is that the high SBD price will attract more people to write posts. The payout of those will compensate the request of SBD.
Too easy? It's the law of the market.
Maybe. Still supply of SBD is too inflexible and can not react quick enough to jumps in demand, breaking USD parity.
Yes, but are market movements that are gradually reabsorbed. See this chart:
Is the same of my post
https://steemit.com/steem/@miti/steem-dollars-at-usd3-20-impact-on-steemit-community
Compare that chart to this one, showing BitUSD price over the last year. BitUSD keeps USD peg much better.
You got a point there, @slavix
SBD must have to be stable. We have steem that is not stable.
Why don't we do something that will increase the steem price
It's a pure game of supply and demand, that will increase or decrease the price. You have pointed that by collateraling steem we can increase steem price.
You a have a point but is SBD price rise good for Steem community!
I don't think it is good for Steem community.
SBD is supposed to be worth 1 USD.
We already have a non stable token Steem, while SBD's purpose is to allow users to keep some of their funds in a stable currency.
any price above $1 is pure money for steemit community from outside the community
decreasing settlement time from 3,5 days to 18h-24h should help imo
SBD's purpose is to provide a stable currency option for users. Otherwise it serves no purpose as we already have a non-stable token Steem.
Good point you are making. Yet I think the amount SBD in circulation is in fact what is needed to create all the steem and steem power. The lack of SBD maybe because most are in steem power, not steem. Therefore it is not possible to move steem into SBD or else its making a collateral on top of another collateral. I can be totally wrong on this. Your thoughts?
SBD is a smart contract coin created with Steem as backing, not the other way around.
It is similar to BitUSD which is created by putting up BTS as collateral.
I should read the white paper though, since I am not entirely sure of how exactly it is constructed.
Could the unusual interest be due to Tether rumours, I wonder?
Possible, but if Steem Dollars could be created at will, price would likely stay the same regardless of increased demand.
51.12% @pushup from @slavix
BitShares mechanism to pegging bitUSD to dollar is really smart invention. Surly this pegging can be possibly quite easy implemented in steem blockchain, because it is very similar to BitShares.
What do you think Steemians, have anybody some ideas about that?