RE: Why SBD will fail and how can we fix it?

[xeroc]

You are missing the point of how SBD are actually created. Let's think this through:

1. SBD price goes down further
2. People start to use "convert" instead of selling into the market
3. A week later, they get STEEM
4. Steem are sold
5. The market cap of Steem goes down
6. Less SBD are created from posts (because the market cap went down)
7. Less sell pressure due to SBD sell-off and convertion due to less amounts available
8. Meanwhile people start to understand the implications of SBD (free instant micropayments, interest)
9. Buy Pressure for SBD starts to build up again
10. Meanwhile the network grows and demand for SP grows aswell
11. People buy into Steem to get SteemPower to obtain more VotingPower and higher rewards
12. Marketcap rises
13. Rinse and repeat until sufficient market traction slows down the process