You are viewing a single comment's thread from:

RE: Take The Chance - Accumulate More Steem Through Overvalued SBD!

For those wondering why SBD will fall back to 1USD, the basic gist is this:

  • There are built in mechnisms to both create and destroy SBD to ensure that it stays balanced at $1 USD
  • When you receive a post-payout, more SBD is actually created to pay you with.
  • There used to be a "Convert to Steem" option on your wallet page, which would convert SBD to Steem at the value of $1USD/SBD and destroy the SBD in the process. The feature was removed because the SBD value is way above $1USD and so noobs were being disadvantaged.
  • Because this feature has been removed, a ton of SBD is being created on a daily basis, and none of it being destroyed. Refer to @sevenseals SBD chart in this post
  • This hyper inflation will ultimately create a supply of SBD that will out-strip demand for the coin. As more and more SBD gets created, the value of that coin will drop.
  • When it goes under $1 USD per SBD, it's likely the "Convert to Steem" option will return, which will allow the SBD oversupply to eventually be destroyed. My guess is that it will probably convert at $1USD/SBD.