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RE: STEEM DOLLAR Peg Debate : Stakeholder Analysis

in #steem7 years ago

This was an excellent write-up covering many aspects of a fairly complex issue. I think it's still too early to try and tweak anything considering the new supply of SBD has just recently started picking up steem (only 7.2 million SBD currently in circ, compared to over 240mil Steem in circ). I read somewhere SBD's are currently at +10% inflation per WEEK. At this rate, in 6 months we would have around a 90 million SBD supply. The supply going up so rapidly should start to put pressure on SBD price across the exchanges as new SBD's get sent out for Fiat, BTC and other alts. I also feel like SBD will start to correct sooner than we think (1-6months) without doing anything. Give the market and the programmed inflation a chance. The dollar didn't lose 99% of its value due to dropping gold standard/QE/inflation overnight did it? It took decades and this is crypto, so we're looking at most likely just weeks here... ;)

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Thanks. I'm very interested on your source(s) for the SBD inflation rate. I think I might write about that too as now that there is no conversion of SBD to STEEM there would be some unsustainable growth happening in the circulating supply. So you are correct, a reversion to the peg is probably inevitable.