This is not a good thing, my friend. The SBD price spike indicates that someone is buying it all up, most likely to exchange for STEEM. This may result in a sizeable amount of STEEM being produced which will likely have an adverse effect on the value of the currency.
We may hope that the buyer who is amassing the SBD is altruistic in their agenda, and hopes only to burn the SBD to reduce the amount of debt in the ecosystem, but this would perhaps be naive.
That's entirely your prerogative, friend. But, selling it to buy STEEM is a little counterproductive. SBD are simply I.O.U's that mean "I will pay you $1 worth of STEEM." So, if you want to exchange SBD for STEEM you need only go to your wallet and select the "convert to STEEM" option.
But, please be advised that every time SBD is exchanged for STEEM, more STEEM must be created, thus, inflating the currency. With small amounts, this will have very little effect. But, with large amounts of SBD being converted, this can certainly be a problem. This is why many people use their SBD to promote their posts, as it burns the SBD and alleviates some of the debt, and thus the pressure on the system.
This is not a good thing, my friend. The SBD price spike indicates that someone is buying it all up, most likely to exchange for STEEM. This may result in a sizeable amount of STEEM being produced which will likely have an adverse effect on the value of the currency.
We may hope that the buyer who is amassing the SBD is altruistic in their agenda, and hopes only to burn the SBD to reduce the amount of debt in the ecosystem, but this would perhaps be naive.
I shall watch this closely.
That's entirely your prerogative, friend. But, selling it to buy STEEM is a little counterproductive. SBD are simply I.O.U's that mean "I will pay you $1 worth of STEEM." So, if you want to exchange SBD for STEEM you need only go to your wallet and select the "convert to STEEM" option.
But, please be advised that every time SBD is exchanged for STEEM, more STEEM must be created, thus, inflating the currency. With small amounts, this will have very little effect. But, with large amounts of SBD being converted, this can certainly be a problem. This is why many people use their SBD to promote their posts, as it burns the SBD and alleviates some of the debt, and thus the pressure on the system.
Very interesting information
you are welcome @blocktardes
Exchellent post!!
And very useful dear @blocktardes :)