I saw more than one post lately in favour of getting rid of the SBD's all together.
With the future of SMT's and businesses in mind I think a safe heaven on the STEEM blockchain in the form of SBD's would be extremely valuable if it can be done.
What is a SBD? (STEEM blockchain dollar):
An SBD is an IOU for 1 USD worth of STEEM.
There is a convert function build into the blockchain where you can always convert 1 SBD for 1 USD worth of STEEM.
This convert function is separate from the Internal Market.
That means that when STEEM is 50 cent you can convert 1 SBD into 2 STEEM.
It also means when STEEM is 2 USD you can convert 1 SBD into 0.5 STEEM.
It's an extremely useful token when it works. A fantastic safe-heaven/hedge against falling crypto prices.
Sadly crypto markets are weird and 1 SBD that is only worth 1 USD of STEEM is trading much higher causing tons of confusion. (max was 17 USD, now 1.25 USD).
It therefor can also not fulfil it's roll as safe-heaven because it will just fall with the rest of the crypto markets.
Back when it was trading high I was not a fan of any peg because it would just piss off a ton of people (from bloggers to traders).
Now however, the SBD is nearing it's intended value (trading atm @ 1,25 USD).
I currently start to look at it again as a safe heaven (it can only max drop 20% while the rest of the markets can still drop way more) and in bearish times it's fantastic to have something like this.
With the future of SMT's in mind I think a safe heaven on the STEEM blockchain would be therefor extremely valuable.
The discussion should take place now. As soon as the markets turn the SBD will go up too and the window is gone.
I talk about it more in my vlog.
I am a witness with our developer group @blockbrothers for the Steem blockchain. If you want to support us I would appreciate your vote here.
We build Steemify a notification app for your Steemit account for iOS.
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My video is at DLive
My dear @exyle, I tell you now here with confidence, you as a man who knows the news, because nobody is a secret that my beautiful country that I love so much, is going through a very critical situation with respect to the economy, and I open my heart, if at this moment there was no STEEMIT, I do not know what my life would be like or where I would be now, I live thanks to my God and the great platform steemit, I am just beginning and that my reputation is very low, and maybe my publications they are not high quality for many readers and followers, but something if I tell you, everything I do I put my soul and my heart, everything I can publish I put passion, if I would like that many could see my work and support me, but I accept with humility and gratitude, what I have achieved is to be here, I follow him every day because I see that he has a big heart and always supports my comments, which I do in a very sincere way.
With regard to the currency, I would like to have a much higher impetus and momentum, my only son is getting married this year and I would like to support him with a small meeting between friends, but all that is a lot of money, but I have the faith of that I will achieve it, according to your studies, please keep us informed if the sbd or the steem will increase, I will thank you for my most cordial greetings, my dear @exyle.
Mark @exyle I don't think there is any reason to get rid of the SBD. It has it's use within the STEEM Block Chain and as a Hedge it is perfect..........
I agree with this not only for the safe haven aspect it provides but because having a stable coin on the platform makes it way easier for businesses to establish here, because they won't have to worry about volatile currency prices and by removing sbd you make the volatility problem worse...
The people asking to remove sbd just want a pump to steem price, we all want that but having a pegged sbd will also be a good benefit for the long term health of the platform as a whole.
It would be an absolute mistake to eliminate SBD, which has brought in so much capital to the system.
when sbd started it was around 0.8 dollar why you think It wont go down as well ( if for some reason people start to think that steem will have no longer value then sbd will crash as well).
Example: If STEEM would go to 20 cent and SBD would go to 20 cent that would mean I could buy an SBD for 20cent on an exchange then convert it to $1 worth of STEEM with the blockchain function and I would receive 5 STEEM. This will not happen to many people know.
I understand your point but where do we find the blockchain function(where 1 SBD is always worth 1 dollar of steem)?
I mostly used exchanges or internal market to trade sbd for steem and vice versa.
There used to be an option for it on steemit.com but they removed it after people started to convert 1 SBD (worth $10 USD back then) ---> $1 USD worth of STEEM. Some people got really burned.
I expect this option to come back when 1 SBD is back where it belongs.
I'd like the witnesses to keep paying out the SBD hand over fist until it's back to $1.
The fact is, pump and dumps aside, it's irrational for someone to buy 1 SBD for more than US$1; and the ecosystem was designed assuming people would act rationally, so all of the safeguards were built assuming the SBD might need to be pushed up.
I doubt anyone considered it would ever need to be pulled down.
That's true but sadly for us markets are not rational and the safe heaven function for an SBD is therefor not working at the moment.
And printing more SBD's is not that easy when the STEEM price goes down as well. (I get more and more liquid STEEM for my posts in the paypouts).
All those SBD's need to be backed in the end by STEEM.
Thanks for this video! I saw this argument kick up and I was really not sure on how it all works but your break down helped a lot. So in short this is good for me as a new user on the platform and steem blockchain. I have finally started making some $ on some of my posts thanks to upvotes on Dtube and persons like yourself @exyle. But yeah regardless of where things are sitting im all in for the platform and helping it grow. PS im running a DTube contest where you can win animations for your videos. Perhaps you would be interested. I have 5 different renders available in this weeks contest :)
I think you're right. It will indeed be valuable if SBD can have a more stable value. I hope they could consider doing something about it though it would still depend on traders themselves. If they decide to buy and buy more SBD over STEEM then the price of it will of course eventually increase according to buy demands.
Thanks for infor was unclear what SBD was
I am not a fan of posts being paid out in SBD. As 1 SBD does not equal 1 US$, the value of your post is in neither SBD or US dollars but instead a strange weighted average of the two. For example, if both SBD and steem have a value of US$2. A post with a payout of $100 after curation would receive approximately 25 SP and 50 SBD. This gives us a payout roughly equal to 75 SBD or US$150 neither is $100.
If a person choose 100% SP payout, they would receive only 50 SP equal to roughly US$100. This creates the problem that nobody has any incentive to receive 100% payout in SP, thus making this feature redundant. If anything, the payout in purely SP should be slightly better as we should be encouraging people to invest in SP rather than take SBD payouts.
Receiving SBD payouts also adds another level of risk to those buying votes. If the price of Steem falls during the week, those that bought votes even with a positive ROI stand to lose. If the price of Steem rises during the week, the ROI will become positive. This could result in speculative use of bots rather than promotional use.
I am not opposed to the existence of SBD but I am opposed to payouts being made in SBD. If someone wants to hedge their risk, they should be able to buy a correctly pegged SBD to US$. I believe pegging to the dollar would be easier if we didn't have the added complication of payout fluctuations.
It's very good news for investor. Obviously in future it will be a safe heaven on the STEEM blockchain for investment. This is very hopeful. Thanks sir @exyle.
That's true SBD are very safe to invest now...
It's the most tempting investment item of today in cryptocurrency I think. History shows it will go up so why not buy it now when it's very cheap?
If smt could replace sbd in the real sense of it, I think it would be better because sbd existence has done more harm than good to the growth of steem, the desire to convert the available sbd cannot be over emphasize.
But @exyle don’t you think a $12 Steem Dollar would be pretty awesome again also? 😜💸
nice post :) @exyle
Posting yang luar biasa bagus sekali,salam steem
Grrrr. DLive is not playing for me again @exyle and this looks like something it would be good to learn about.
I'll have to try again later. Maybe too many people are trying to play it at once?
It usually takes a little longer before it plays fluently. (15min).
Oh. OK thanks! 😊
should work now.
Yep. Seems to be playing now. I'll remember that in future! 😊
I take that back. It's still stopping after every couple of seconds. Will wait longer . . . 😂
I tried many times but gave up in the end @exyle. I'm not sure why but my computer just doesn't seem to like Dlive.
I can get the gist of it from your writing but it's not as good as you more thorough explanations. ho hum.
Thanks mate, you are always extremely helpfull
muy bien mi amigo,siempre te sigo
SBD should be removed entirely from the system and only have the Steem as the currency from my point of view.
This breakdown of yours actually removes all doubt from my mind.
Thanks.
The best time to invest on steem now either from external exchangers or buy steem using your SBD internally using blocktrades.
The market today is bloody red coz I guess some whale exchangers are manipulating it or the money at the moment is in fiat or in ForEx. This should not be an issue since history will just repeat by itself. Thanks for this video. I'm new to @dLive.
If SBD is supposed to be right around 1 USD, I think they would have to change the way posts are paid out to maintain any real value. I think if the price of STEEM went way up and SBD stayed right around $1, people would start giving up when the majority of their payout is in SBD. It's already hard enough to get payouts these days, that would be even more of a slap in the face.
stable coin value for sbd is very much needed it has messed up the algorithms for the system huge drastic changes every time users will not love that for sure and it's showing that right now there should be some changes its the need of the hour
Great explanation of SBD, confusing but I understood it clearly. As a hedge SBD is fantastic to save us from the falling crypto prices :)
That's a video that I've been needing to hear for a while now.
But here's . question....When you are choosing payouts, would you still recommend the 50 / 50 split because we are getting closer to a dollar or 100% Steem Power for a payout?
I've never understood when is the right time to choose either option...
Sadly crypto markets are weird and 1 SBD that is only worth 1 USD of STEEM is trading much higher causing tons of confusion. (max was 17 USD, now 1.25 USD).
SBD $10+, those were the days.
Hopefully we will reach that level again.
😎
Thank-you for explaining sbd in simple to understand terms. I think it's a good tool to have
In this crazy 'crypto' market. Boy I hope that term 'ctypto' is exchanged to something different like maybe 'token'!! In the future!