SBD has fixed total number, Steem does not. SBD value should go higher.

in #sbd7 years ago (edited)

I'm new to SteemIt. I asking a set of questions, rather than trying to make any statement. But I'm confused about why people are surprised that SBD is valued so high compared to Steem. As of this writing SBD had spiked over $18/coin a day or so ago (now about $11-$13/coin), while Steem is about $1.5- $2.00. But SBD has fixed total coins of about 3.5million while Steem is being produced more and more thereby increasing its supply appreciably, right? If I were getting into the SteemIt ecosystem wouldn't I rather own the fixed supply of SBD?

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The amount of Steem isn't infinite. Their's just a high amount of inflation(purposely).

Thanks for the reply. That high amount of inflation for Steem still is an increase in supply which will counter some of any increase in demand. Also, can you or someone clarify is SBD actually a fixed supply? I've read some posts about being able to convert Steem to SBD which CREATES more SBD coins. Is that accurate or does it really mean Steem is used to purchase SBD, thus increasing DEMAND (not supply) for SBD?