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RE: Speculation killed the STEEM DOLLAR Utility

in #steem7 years ago (edited)

Nobody has yet given any rational reason for the pump and you can call me old school if you like, but I prefer markets to be rational.

Reason A: You will need SBD to conduct an SMT ICO - controlling a large portion of the SBD supply could be a very wise business decision (which has already paid off).

Reason B: Some smart cookie in Korea worked out that SBD is an incredibly easy coin to pump due to relatively limited supply and made a very ballzy, successful trade. This manipulation then created an impressive looking chart and people, seeing the massive rally out of the historic range -> correction, are now betting on more upside based purely on technicals.

It's got nothing to do with income inequality. It's about designing software for a purpose and then that purpose being compromised. None of the existing users (including the witnesses) particularly care because they are lining their pockets in the process.

We can't have a discussion about the rewards system without discussing remuneration. Any attempt to lower SBD would be a direct attack on content creator remuneration (from people who earn a fuck ton of money witnessing).

Re: Honoring the whitepaper: all human constructs are fallible and rewards distribution was broken - the few people making a wage were arguably not the best content creators. They are marking even more now, but at least everyone else is doing really well too. Average Steemians were struggling for months out here when SBD and STEEM were sub $1. If a broken SBD peg means content creators actually getting paid, then IMO it is clearly the lesser of too evils vs not honouring (an arguably flawed) whitepaper to the tee.

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What happens if the SBD returns to $1. All those content creators have been lured here and encouraged by a false economy? Do they then piss off? Are we going to be content to return to being paupers? Is a boom-bust scenario for authors here better than organic growth with a focus on content and community rather than profit? I'm just playing Devils Advocate here, but they are valid questions.

I was not aware that SBD was required to conduct an SMT ICO. That might be a valid reason for pumping the price. As for Reason 2, it is reliant on the Greater Fool Theory and I would even argue that such a scheme would only be perpetuated by a Bad Actor.

But anyway, I'm not saying it is all bad. I'm just saying it is irrational and is not all good either. There are a fair number of people in my comments who had no idea why or what purpose SBD has. Considering what has happened this last month who can blame them for the confusion!?