You are missing the point of how SBD are actually created. Let's think this through:
- SBD price goes down further
- People start to use "convert" instead of selling into the market
- A week later, they get STEEM
- Steem are sold
- The market cap of Steem goes down
- Less SBD are created from posts (because the market cap went down)
- Less sell pressure due to SBD sell-off and convertion due to less amounts available
- Meanwhile people start to understand the implications of SBD (free instant micropayments, interest)
- Buy Pressure for SBD starts to build up again
- Meanwhile the network grows and demand for SP grows aswell
- People buy into Steem to get SteemPower to obtain more VotingPower and higher rewards
- Marketcap rises
- Rinse and repeat until sufficient market traction slows down the process
Hi Xeroc thank for your view, but it SBD goes down while Steem too goes down the most profitable action is not to convert to Steems but sell your SBD for BTC . Because with this BTC they will can buy more SBD or Steem at future (if the downtrend continues), could you please explain how modify the market capitalizatión to SBD creation process? I dont see nothing at Whitepaper about it.
1 Steem per block is available for rewards .. parts of that steem are converted to SBD at the steem:sdb price. Only after that it will be available for payouts on posts etc .. That means, the higher the steem price, the more SBD are created and available to be paid for posts and vice versa
thank you for the explanation, but it does not solve the danger of big SBD holders scared for a down in SBD and Steem price sell and broke the peg
What's missing is liquidity and on-/off-ramps .. that's all ..
In the meantime big SBD holders can always request a settlement/conversion and rest assure they get a fair price after one week .. then they can sell STEEM in more liquid markets ..
Good analisys