Great post, I guess if one wants to hold SBD longer term then one needs to have confidence in the Federal Reserve Note or USD, even if one considers their own 2 to 3% inflation nonsense then the peg against the SBD is not a great proposition long term as the buying power is being eroded (stolen) over time.
I personally believe in free market or Austrian economics. Tampering with markets can only work for so long before Natural Law kicks in an rebalances things as the Federal Reserve is finding , no doubt.
Followed upvoted and promoted, Amigo
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There isn't really a good reason to hold SBD longer term if it is working as intended. As you say since it is designed to be pegged to USD and USD is explicitly designed to devalue at 2% per year, holding it long term is pointless. Holding SBD is the equivalent of sticking cash in your mattress, hardly a brilliant investment strategy. You would want to actually invest your money instead of holding it in a cash equivalent, beyond what you need for routine expenses.
Yes amigo, my point exactly. As I am new to the steem community I am curious as to why I would want to chase the steem dragon, other than to ride the wave.
Not saying I am ani-crypto but I am a long term player and fundamentally a contrarian by nature so I am naturally skeptical with following the crowd. But at the same time dont want to miss out, I guess I want my cake and be able to eat it to.
Thanks for your response amigo.
Followed and appreciated
SBD isn't an investemt, the same way as dollars aren't.
But in short/mid-term time frame they can give you stability and that can be important.
Yeah, that's how I see SBDs...as I do with the USD. I'm not accumulating either one in order to make profits off of holding them. Short- to mid-term, I should be able hold to them and pretty much not lose. But it's certainly not a way to actually gain, given inflation.
To make gains, you'd need to invest those SBDs or Dollars into something with positive returns that cover the losses from inflation. If you're not at least covering that, then you're losing.
That being said - the inflation for USD is typically low enough to make your realized gains relatively easy to achieve.
Agree
True , thanks for weighing.
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"Tampering with markets" is a strange thing to say about influences of a central bank on a dollar, when the dollar per definition is not a market-born thing.
It is so strange I can't even find a comparison.
How can the dollar be market born? It is not anything real!!!
Why should anything that is not real be acknowledged?