According to the page 4 of the new and updated Steem blue paper (which updates and upgrades in certain places the original Steem white paper), SBD are no longer named Steem Backed Dollars, but Steem Blockchain Dollars.
From the same blue paper, I find this part to be massively intriguing:
SBD tokens are designed to be pegged closely to one USD, so that users who receive them can know approximately how much they are worth in “real dollar” terms. SBD tokens also offer a relatively stable currency for users to hold if they are looking to preserve their account value relative to USD.
Why intriguing? Because the language is quite different from the original white paper. In that initial document, SBD were closely pegged to $1, and the error margin was almost assumed to be within $0.05 up or down from the USD dollar. Whereas now, we see the following terms in less than 3 lines: "approximately", "relatively stable", "value relative to USD". It's way more foggy, leaving a lot more room for interpretation than the initial wording.
I think the implications of this rather subtle change are way more important than we think. I admit I didn't "see" it from the first time, but looking at the current SBD pump I may understand a scenario in which this "relatively stable currency" can normally have (and obviously has, as we can see it now) values significantly bigger than 1 unit of USD.
Having a $12.5 price per SBD, for instance, will still preserve the account value relative to USD, only you'll have to multiply with 12.5 your SBDs, not with 1. Sort of.
I will try to have a closer look at the debt to ownership ratio and potential implications of a significant imbalance in this area, but for now I just wanted to share this change, which, in my opinion, can shed more light over the current SBD pump, at least theoretically.
I'm a serial entrepreneur, blogger and ultrarunner. You can find me mainly on my blog at Dragos Roua where I write about productivity, business, relationships and running. Here on Steemit you may stay updated by following me @dragosroua.
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Thanks alot for clearing this out! I also tought because you hear it everywhere on steemit :)
i like the price of SBD like everyone else but it kinda worries me for the future of steem, cant explain why exactly but it does
I think pumps like the last one are bound to happen again as steem becomes more desirable.
A vry nice post...at the ryt tym...hope it will help me sooner
Thanks for this INFO @dragosroua.
@dragosroua What if it is not a PUMP on SBD ?? What if it is the New Normal ??
I think the new normal for all cryptocurrencies and coins are going to be varying wildly over the next 6-12 months. As Steem becomes more popular we're going to see massive fluxes on all sides IMHO.
I still believe that SBD is being pumped in a coordinated way.
They updated the whitepaper around the same time that they published the bluepaper. The updated whitepaper still has the 0.95 to 1.05 language.
w.r.t. the ratio of debt / ownership, this is interesting.
yes, I saw that too, but the change in blue paper kind of supersedes the white paper definition, IMHO
The two statements aren't actually in conflict. One is just more precise than the other.
I think that as a general rule of interpretation, when two authoritative documents have a specific formulation and a general formulation, if the specific formulation applies, then it takes precedence. Also, as I understand, the whitepaper is a technical description whereas the blue paper is more of a marketing summary. It's not either/or, it's a description from two different perspectives.
So, that means the meaning and even the full form of SBD can change any time, without any announcement?
Honestly, I do not write and earn here on steemit to trade my money because I honestly need money. I needed some amount to enroll myself to get professional education units.
For now, I work at home through writing alone, so for me and to some are just like me, we take this opportunity as a bonus. This would not just help us alone but also our families.
Well, it is not just earning here right? I also aim to convert some SBD to Steem so that I could increase my Steem Power. I also wish to help my fellow Filipinos and fellow artists in curating their posts because I know my 0.04$ is not enough.
I'm still baffled as to how this is possible. I suppose it could just be traders manipulating the price and not necessarily anything to do with Steem or the steemit platform. Either way I've been loving converting 20 SBD to 125 Steem and powering up, great for longterm users
isn't it strange how that in one hour we managed to see a rise from $7 to $14 then a fall to $6.5 in the price of SBD?
Very far from being stable...
That it's because Bittrex is hitting Coinmarketcap outliers algorithms. If an exchange hits their algorithm is excluded from the display. In our case, when the price is very low, Bittrex is simply not taken into account and displayed, and when the price is high, Bittrex is not hitting that algorithm and it's not cut out from being displayed.
okay, so this is why it is having strange fluctuations on coinmarketcap, thanks a lot!
I too think it is very much needed to change the name as, Steem Backed Dollar give a sense that no matter how high it's value goes, somehow it will be managed to brought down to $1 which causes everyone to sell it as quickly as possible as it goes up, with in turn bringz it down to same value. I think with this new name SBD can rise far above in term of its value
and i used to say it backed lol finally something to correct thanks for sharing this damm little things can make a lot of change
We should all try to read both blue and white papers... Thanks for this.
@dragosroua do you think this uptic in the value of SBD is by the upper whales?
Hmm... Is this where the conspiracy plot enthickens? ;)
That's a curious catch. I guess they saw that the pegging wasn't really working and softened their language. Currently we can see that it's not working at all. I remember the times not so long ago when I was pointing out the stability of SBDs as one of the platforms assets for commerce. Looks like I wasn't getting things right and neither were the STEEM founders.
strange version of SBD explanation. :)Hi @dragosroua, Thanks for this correct. I have seen even some witnesses saying SBDs to be Steem Backed Dollars. Some others called it Steem Business Dollars. I could never understand the logic behind these terms. What you shared makes complete sense and I hope nobody else comes up with another
Thanks for sharing.
Steem On!
I think it's a pump and it will be $1 soon but it feel great to earn more :D
great news of sbd,thanks for updates information sharing
very different
so great that was
yeah it will go again near 1$...
I love this... Really nice
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Nice Info
subtle change are way more important than
But it quite contradictory statement. It may be the time to redefine terms again.
Good eye.
Who is responsible for pegging the value of SBD to the dollar? how is it done?
I didn't know that. Thanks for sharing.
I think its pump like last time..but nways its time to earn