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RE: The @sbdpotato beneficiary experiment

in OCD • 5 years ago

But isn't wasting a lot of money buying sbd exactly what they are trying to do here?

Economics 101:

Price is the result of the relation of supply vs demand.

You are creating demand, but fake demand. Unsustainable demand.

Demand come the there is a need for something. Why the fuck do we do with sbd? Nothing.

It doesn't fukin matter how may sbd you buy on any market. It is not real demand. Price will keep crawling back down because THERE IS NO FUKIN REAL DEMAND.

Maybe writing in caps will help this very basic economic concept to go through these hard heads....

5 years ago in OCD by
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     5 years ago (edited) 

    And it is clearly wrong. There is SOME demand. I can point to people who have bought large amounts of SBD, even at $1 or higher (or course this is true because every trade has a buyer, and it has traded a lot at $1 or higher).

    The price is a balance between supply and demand as you say. If there were NO demand, then the price of SBD literally would be zero. There is SOME demand, so supply has to be reduced to meet it.

    Why the fuck do we do with sbd? Nothing.

    1. We use SBD for the SPS. It was designed that way because of real world experience with the problems of using a non-stable coin for budgets.
    2. There are many people who have always liked to hold SBD for its stability. The alternative for people who don't want to gamble on the value of STEEM is to sell the STEEM, taking the value off the platform entirely. That is not an advantage for either the individual or the platform, for various reasons.
    3. There are other potential uses for SBD. As with SPS, any time high variation of value would be a problem. I believe SMT creation fees will be specified in SBD.
    4. At one time in the past, someone set up a service with a payment card which could be used to spend and purchase SBD at par (so zero hassles with exchange rates, taxes, etc.), but it had to be dropped due to the SBD peg not being maintained. Improving the peg allows more use cases to develop.
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       5 years ago  

      And it is clearly wrong. There is SOME demand. I can point to people who have bought large amounts of SBD, even at $1 or higher (or course this is true because every trade has a buyer, and it has traded a lot at $1 or higher).

      When? 2017-18? when the hype about blockchains was at its peak and everyone was buying any cripto that increased price? When haejin was "predicting" that SBD would reach $100 USD?

      That is not real demand my friend. It is speculative demand.

      Real demand is when people look for an asset because they will have some actual use for it.

      Speculative demand is fake demand. People are buying something just because for some reason or another, they believe they will be able to sell it for a higher price.

      The price isn't zero yet because there is still speculative demand, mostly related to STEEM, that have some use (power over the Steem Blockchain).

      Tell me one thing you can do with SBD besides buy and hope that the price will go up so you can sell with a profit.... Just one...

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         5 years ago (edited) 

        When? 2017-18?

        All throughout Steem's history. There have always been buyers. There have always been people with SBD sitting in their wallets because they want some stability of value.

        Real demand is when people look for an asset because they will have some actual use for it.

        Yes, and wanting value stability without needing to move off the platform to get it is real use.

        Tell me one thing you can do with SBD besides buy and hope that the price will go up so you can sell with a profit.... Just one...

        Simple. Hold it so that the volatility of your holdings ON THE PLATFORM are reduced (not have to deal with exchanges, fees, KYC paperwork, etc.)

        Speculative demand is fake demand

        None of what I described above is speculative demand.

        The primary value of SBD is that its value is a lot less volatile than STEEM (even in its current not-quite-working-perfectly form, but the more that can be improved, the more value it will have).

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           5 years ago  

          The primary value of SBD is that its value is a lot less volatile than STEEM

          this is the only thing you wrote on this whole discussion that make sense.

          And BTW, all the above you mentioned are speculative. It's all based on expectation of what MIGHT happen on the future. This is the exact definition of speculation.

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