Unless the shop only accepts SBD, it does not happen IMO. If a shop accepts USD, most people will buy the shirt with USD instead of SBD. The best part of SBD is users don't have to buy SBD to use it. Most of users earn SBD by contributing the platform with their contents, so 1 SBD means just 1 SBD, not 1 USD.
I think this kind of answers the question. If users have the option to buy the shirt for $20 USD or $20 SBD - then nobody is going to pay SBD for the shirt. They will just end up cashing out the SBD for USD (or whatever other currency they want to use). They may still buy the shirt or they may not, but either way the shop is not adding value to the STEEM/SBD economy if nobody is using STEEM/SBD to purchase the shirts.
Interestingly, SBD is actively used in KR community for tipping, buying, and donating, since we already have meaningful size of community (with retail owners surely)
Yes, tipping and donating are surely two great uses for SBD.
It can be used for buying as well, but it does become more difficult. Either there is an extra burden on the shop owner to deal with the fluctuations, or there is an extra burden on the customer to pay a higher premium. It is not that it can't work, it is just more difficult with a fluctuating currency.
I rather think high SBD price caused by speculators benefits the community, especially our contributors. Why don't we leaving it and giving more profits to the community?
The added profits are a nice short-term benefit. I am enjoying them myself as well. From the perspective of an 'average user' I probably would rather have it trading above $1. If someone wanted to pay me $100 for my SBD I would be delighted :)
Looking at it from the perspective of the long term growth of the platform though, I do see value in having a system that makes it easier for business owners to participate in a marketplace to offer goods/services to SBD holders.
Here's an interesting talking from Dan (from 57:30)
"Steam dollars as an insurance against falling below a dollar rather than a guarantee of a perfect peg. And depending on perspective you take, it's an interesting crypto-instrument"
It is a valid view. To some extent, the whitepaper also says the same: "In a market where 0% interest on debt still demands a premium, it is safe to say the market is willing to extend more credit than the debt the community is willing to take on. If this happens a SMD will be valued at more than $1.00 and there is little the community can do without charging negative interest rates."
I know we have discussed this a lot before off-chain, and I think you and I are more in agreement than disagreement.
I am curious though:
My answer is unless SBD is under $1, less burden on the community is better. The burden includes perceived complexity and potential debt crisis. I would keep the debt ratio lower to prepare another ice age. Winter is coming :)
I think your proposal is much better than feed premium, and I am actually partially agree with you. Your proposal is a good way to switch demands for SBD to demands for STEEM. What I am worrying is more complexity, higher debt ratio, and losing perks for authors (Many authors are enjoying the high price!)
I am strongly against feed premium since it harms the community members when they convert SBD. Now we have no complaints but if premium is applied, we may hear some complaints, saying "I lost $50 after conversion!".
I'm with you. I tread into these waters very carefully knowing full well that we are just one STEEM price crash away from another serious debt issue.
Understood. There are definitely trade-offs. There are valid views on both sides for sure.
Yep, agreed. I stopped my premium the moment I talked to you, and I am very glad I did. I've seen similar complaints as well. I submitted a pull request to the condenser repo too (still waiting for approval) to more clearly communicate to users the potential risks that are there with conversions. Hope this well help too.
Absolutely agree on the condenser changes. People are making foolish conversions right now and have been for weeks (bad for both the user and the system). Anything that can be done to improve that situation is welcome.
Awesome answer, as always :)
I mostly agree with you but I don't think the proposal adds significant complexity. We already have conversions in one direction, it is actually a bit more complex to explain why it can only be done in that one direction and not the other (I have been asked this multiple times).
I agree that harming community members is bad. The problem is that the high SBD value harms community members when they convert, and by not addressing it we are contributing to this harm by inaction. At least two community members converted $200 worth of SBD today alone, each is losing about $100 in the process. The faster we can reduce the high price of SBD, the faster we can stop this from happening. It has been going on for several weeks and community members have been hurt doing this almost every single day! (Thankfully it is now less than before due to education, but that isn't perfect.)
I think we can get much the same benefit without the disadvantages by shifting demand to STEEM and raising the STEEM price. This also reduces the debt concern (maybe not on net, it is hard to say).