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RE: Whispers of a perma-pegged Steem Backed Dollar are emanating out of the witness camp.

in #steemit7 years ago

Yes they are. And gaming it a lot as well but with that case sbd should naturally lose value back towards one dollar so what is propping up the price?
There must be people paying that price for it otherwise it would have dropped straight back down after it got pumped before the xmas. I wonder is it just through external buyers holding it and hoping for another pump?
I dont know the technical side of it but if they cut the value overnight back to one it will definitely have a knock on effect for the steem price aswell because they are intrinsically linked together and if people will lose confidence in one then i see it affecting the other in the markets especially with people who dont have the full story about the steem blockchain.

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My guess is, as more and more people join Steemit and earn Steem Dollars, the more of them they'll be in circulation, which will inevitably lower the price back down to its original 1 United States Dollar peg.

We will have to wait and see i guess but hopefully they leave it alone for a while. I never like to see people meddlimg in things unless absolutely requured to do so. It rarely ends well.