Taking take time away from my fun project #adoptaminnow to talk about SBDs (Steem Backed Dollars)
Currently the price of SBDs is at around $9 on Bittrex. This is interesting because the price of SteemBackedDollars is supposed to be pegged to the dollar.
*my bad art
Quick Info you should know to follow the conversation:
- According to our documentation and marketing, SBDs are pegged to a US Dollar. (1 USD = 1 SBD)
- The Blockchain treats SBDs as if they are worth a dollar.
- When you post it pays out it pays as if the peg is working.
- Currently 50/50 payouts are based on SBDs equaling a dollar, so content creators are getting a bonus if they sell SBDs at the current prices.
The Peg works to hold the price of SBDs UP to a dollar, but there is nothing to push the price back down except "Market Pressure". (Selling)
I have seen a couple of posts advocating that the Whales should self-upvote so they can sell the SBDs and push the price closer to the peg. This approach does not make sense to me, because YOU can sell your OWN SBDs.
There are theories about why the SBDs are high, but the Market has currently priced SBDs at about $10 (nobody knows why for sure)
There are mixed feelings about trying to correct the price of SBDs, one reason to try to correct the price is because it looks bad to say our SBDs are pegged when they obviously are not. (Reputation)
Here is the problem with that concept, there is nothing to hold the price down and if the Market decides to pump them again we still have a broken peg. Making this entire argument shaky in my opinion.
My opinion is to let the Markets naturally handle the price of SBDs instead of taking actions to correct them.
Regardless of what anyone else chooses to do, be aware that your SBDs are more valuable right now and if you want to sell them and you don't know how you might wish to seek this information out right now. Nobody knows how long this will last. Many users are using this opportunity to sell some SBDs and Buy Steem Power. I have wondered if that is helping our recent price increase.
Here are some of the antics going on:
Automated Self-Voting (on checkthisout the rewards are hidden in the comments and replies)
https://steemit.com/@rewardpoolrape
https://steemit.com/@checkthisout
Here are some of the other opinions on how to handle this:
https://steemit.com/steem/@demotruk/how-to-enforce-the-steem-dollar-peg-by-self-voting
My advice is just to be aware:
Make your decisions based on your own financial goals.
Check with the Witnesses that you vote for to find out what their views on SBDs are.
If you don't understand all of this, join a trusted community and find a mentor.
Ask questions, but remember you have to trust the person who is guiding you.
My Personal Actions:
I am selling my SBDs because I don't know how long this will last and it is in my best interest to sell at the high prices. I am powering some of the profits up and adding some of it to my "Investment Funds" for future projects I want to invest in. SMTs/Communities
I am treating the site the same way I treated it before.
I do flag obvious abuses from time to time, but even as my account is close to in the top 1000 accounts the biggest impact I can make is a few dollars.
Enjoy, I was hoping to create a simple explanation in laymen terms, please provide feedback below.
Let me ask, what would hurt more steem reputation?
A - Having a 1$ pegged blogger reward currency which has no roof?
B - Demonstrating that steem is not really decentralised and that some big players can manipulate price on their own by stealing the reward-pool?
If I had known about answear B before, maybe I wouldn't have put my money into steem.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
It seems some whales are intentionally hurting our Reputation. I just don't understand how they are missing the big picture.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
i would say leave the market to regulate and correct itself, atleast it shows no one owns the market and it also give the minnows to earn more thus encouraging them to invest more on the steemit network,
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
There is a force that brings the price of SBD down, that is the law of supply and demand. The price/market cap of Steem determines how much SBD is issued (as well as short term changes in voting behaviours). The price of SBD going higher than $1 gives holders of Steem Power extra purchasing power which they can use to remove Steem from the market, thus increasing the price of Steem, thus increasing the supply of SBD's and lowering the price.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Agreed so it is good idea to teach our New-Users how to get the most out of their investment.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
What will happen if it goes up again? Will we just have everyone upvoting themselves each time?
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
We can go back to flagging each other for taking the rewards for ourselves. We'll see how it works out in practice. There is of course risk involved in breaking the taboo on self voting, but those who bought SP with the excess PP will have more power to downvote when the peg is back to normal.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Yes, it is going to be interesting for sure. I am for people using their stake, I am also for people flagging!
So yes, it is going to get interesting.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
It has fallen from the $15 that it usually roams around but it is still high where it caused an increase in new members traffic which came spammers , and what not . But I’ll take it :P
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Agreed that it was hanging around the $14 mark.
It may have impacted new users coming into SteemIt.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
For those wanting to know how to trade their SBD for Steem on the internal market, this guide walks you through it easily:
https://steemit.com/steem-help/@sykochica/answering-common-questions-how-to-exchange-my-steem-dollars-for-steem
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Hey Everyone, Here is the guide on how to sell them if you don't already know.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
I am captain obvious, and I approve this message.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
lol
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
i use to transfer to steem until i read this a few days ago , now i get more using the internal market, this was acoin saver, wish i had found out about this earlier
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
I’m loving this bonus! We know it will go back down but honestly it’s lasting way longer then I thought!
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Btw thank you for getting into this! Many don’t talk about this enough. It’s great seeing someone so respected discuss!
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
With my limited knowledge of the trading world 😉 I would prefer to let the market work itsself out. Even if we think we know what happens with an 'artificial' correction - we don't.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
I have seen a couple of posts advocating that the Whales should self-upvote so they can sell the SBDs and push the price closer to the peg.
XD XD XD
That's the worst idea I ever heard. lol
Your 20 SBD "bill" art is amazing BTW, I really enjoy that. I am with you that the best thing is for all of us to keep using Steem normally and just enjoy the extra money.
It seems like the only reason SBDs are worth so much is that some group of people is buying LOTS of them - who knows why. It might be a convenient way for them to store funds, since it's such a small circulation of tokens.
I'm not complaining, that is for sure :-).
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Me either not only are the extra rewards nice, I didn't expect it to last this long.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Where are you finding this info? SteemWhales.com seems very behind the times. When it loads at all, my data seems to be at least several weeks old.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
I wrote About those high SBD prices a couple weeks ago. I agree with most of what you wrote, and I am enjoying the post payouts as much as anyone, but there are other stakeholders to consider besides just the content creators. I don't advocate doing anything different at this point, but I'm not sure what purpose SBD serves if it can't hold the peg. It's starting to seem like useless complexity.
At any rate, from your post, this is important advice:
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Agreed, I was writing this to the minnows and because of the BS some whales are pulling to try to justify what I would consider to be excessive self-voting.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
However, I support their ability to do what they want with their stake, but I also approve of the community using flags to sort that out. :)
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
I think that sooner or later we're going to have to get over worrying about what other people do with their stake. It's probably just a matter of time 'til some app comes along that obscures its data before storing it on the block chain and controls who can see what inside the app. If you can't read it, how do you even guess at what to downvote?
I've been saying for a while that I think an upvote only algorithm modeled after a second price auction might be a better way to discover post values. That's what Google uses for Ad-words. Of course, too many people here are locked into the downvote way of thinking for that to be a realistic possibility in the foreseeable future.
So... as long as we have flags, I agree that they're there to be used.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
I'm helping minnows by writing guides about Steemit and people keep asking me about the correct division of payouts. This has been confusing but pleasing for whatever we are getting paid because at the end of the day, we're getting paid more than what we are supposed to be paid based on that pegged amount of SBDs.
Regarding SBD price, I'm 100% agreed with you:
This could be one of thee major reasons why the SBD price went up in no time and keeps staying there..
Lastly, this art is good and you should keep trying it more often:
Very good post @whatsup. Shared.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Awesome ur doing this! Thank you 👍
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
I'm also taking advantage of the high price to sell, but I do not want the price to go down, I'm just being cautious.
I do not understand the people who want the price to go down, by reputation? We are in a totally unstable market like that of cryptocurrency, in any market in the world if an action was lowered by more than 90%, like the price has done the BTC a couple of times, nobody would trust him, but this is not a common market, people here know that prices fluctuate and are not always the same. I do not believe at all that people outside Steem, see this as something bad, rather I think it benefits them, that's why it went up in price.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
this is total crap. oh shit this is what we call as abuse of current sbd price. anyway i like this price up
@whatsup
@resteemia
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Well, I am quite new here. Thanks for explaining it in very simple way. I am yet to understand whole concept of steem power, steem and sbd. 😅
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
What are the effects that comes with SBD at 10$? Why is it bad for the platform?
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Good: Content creators are getting more purchasing power with their post rewards, although an increased price of Steem will have a similar outcome.
Bad: SBD no longer functions as intended as a stable transactional token for commerce. Those using the token for commerce face extreme financial risks with the value of the token they are using.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
I do enjoy the current SBD price rise as i welcome the extra money, it helps me pay rent.
I'm not techie enough to understand the risks in the ups and downs regarding the price range, but the 10$ price per SBD may encourage new users to join the platform. It may attract spammers and dishonest users trying to make a quick buck, but time will deal with this maters . Steemit is still
beta.Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
@whatsup,
Just after I understood 1 SBD peg to 1 USD I started selling and converting my SBD! But personally I like SBD peg at $10! Due to low market supply of SBD it can be sit at $10 for a long time! Anyway as you said, we should understand what we need to do! Witnesses also help us to solve those puzzles! Great article friend!
Cheers~
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Bit of official pegged changed we won’t get the reward anymore as it would change amount rewarded
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
yeah, is b to the s
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Totally agree and down with what you are layin' here.... I think a lot magically came back in November to cash in but I see this balloon self correcting imho...
Also, I would like to adopt a minnow, can you matchmake me up with a suitable minnow, this is a goood idea!
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Rise up SDB over the rainbow so high!!Great moment to invest on it.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
It's a great time for minnows to take advantage of the market and exchange their hard earned SBD for whatever they fancy. It can't last forever but no better time than the present to create and reap rewards for the future. Hold tight all the minnows scraping a few scraps together for SP or Steem. I hope it booms again for you all.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Another mind blowing blog post by talented @whatsup. The beauty of steemit is that after short time we continue to close each-other. As I like your personalty in totality, your writing skills, your way of presentation and your message delivery towards community is best. Your words are same as were mine:
My opinion is to let the Markets naturally handle the price of SBDs instead of taking actions to correct them.
SBD is currently changing the life of many minnows due to its high rate. I too selling and converting to altcoins at bitterex.
Wonderful blog post is it. I really enjoyed it while reading step by step till end and believe me I am totally fresh now.
Please continue writing genuine stuff for the sake of true readers of your blogs and for betterment of the community as well. All the best!
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
I think it is far more pegged to making sure it doesn't fall below $1 than making sure it doesn't go above it. Really the only force acting on this is the interest mechanism. If it fell below a dollar and the witnesses added a high level of interest bearing on SBD, people would almost certainly buy it. The only adverse action would be to inflict negative interest on SBD, and I can't imagine that would be done because it would seem almost punitive.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Thanks for the detailed spesnenie.I sell the same part of the SBD, as I do not know how long it will last, but to miss such a chance is silly.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Exactly what I do, I Exchange it every day for steem since we don’t know when this could change
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
You are right. It is a good time to sell sbd!
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
I am grateful to you for this useful topic
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
many many thanks whatsup. sharing useful information
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
thanks for your advice. also thanks your post @whatsup
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Hey @whatsup
You wrote nice article on every blog. This is very great for steemians and also crypto coin marketing people. I just new comer and guide from some senior to achieve SBD. Which great earing $10 = 1 SBD. Keep sharing nice
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
everyone is having fun this time when the prices are up they will not miss out this opportunity
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
very good post I hope you visit mine and you like it
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Hi @whatsup, Your posts always make a lots of sense to me. SBDs have paid to a majority of people in this past one month alone more than in the entire year. I'm lovin' it. #discussion
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
if they release sbd, it will rise too much
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Great information @whatsup
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Great decision....
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Looks like a feedback loop. I for one am selling my SBDs to power up so I can get more SBDs.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Some experts are saying that SBDs price will go upto 30$ next year ....Is is good for steem or bad? what do you think?
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
I can't imagine what experts would be saying that. Usually anything that has an upside has a downside.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Hi @whatsup,
This is called a beautiful piece of writing which includes a statistical comparison among Dollar and SBD.
Such type of articles always give awareness to the mass what should they buy, how should they earn and why should they invest in something particularly.
I relate this blog to my syllabus books which always give us awareness what is right and what is wrong.
Although i am a new addition to this field but i know some minnows who had 100 SBD when its price was 1$ and then the rise in SBD clanged their lives entirely.
It makes sense completely :
Thanks lot for this beautiful worth reading blog.
Keep writing such statistical data in future to make people aware about the importance of SBD
My best wishes and prayers are always with you
Stay Blessed!
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
This post has received a 3.50 % upvote from @booster thanks to: @whatsup.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
The only couter argument I can point out is the perceived coin supply relative to Steem and SBD
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
As if you have triggered it the price of SBD is plummeting right now.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
superb blog put up is it. I sincerely loved it even as studying little by little until stop and agree with me i'm completely fresh now.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
so this is why the prices has started to correct
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
whales are having all the fun lol
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
wow in few days they will earn a hell lot amazing
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
wow those two user name are very interesting
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
They are just washing their hands in the steemfest mania i think
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
HF20 is what all we need
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
the bigger amount of steem power users are using it in a wrong way according to that
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
hundreds of dollars in few seconds amazing with just a vote
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
@whatsup, SBD has low market supply and low market capitalization. So then SBD can be $10: probably long term it would be. I don't hodl SBD long term, try to exchange steem or sell SBD directly. I know you see past time SBD worth over $14. But immediately dip down $9. IF you know some idea why SBD worth soon drop down?
Thank you for the great news.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
antics being antics lol
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
@whatsup - Ma'm why SBD can't peg at $10? I enjoyed by the current SBD price... Hearing about it's price drop (can be happened) is not feels good... But this is how it works... Until it gets it's demand we can feel happy... Nice you decided to discuss it ma'm...
+W+
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Thanks for share very usefull information....
really very nice post.i just learn something to your post.. i hope your next post will very good again..
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
I was trying to build a portfolio with a few hundred first, (cause I still hadn’t invested in any other crypto) and then focus on powering. Sadly I missed my chance for 1sbd to 5 Steem! I also hope to reach the top 1000 someday soon, not really looking to compete but I belong there if I want to make steemit my full time job.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
thanks for your advise sir..it is really helpful to us..this info help us to make our future decisions..thanks alot :)
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
we should leave the market to correct themselves, that what makes a free market work and some minnows atleast they have an opportunity to earn like whales
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Well explained and thought provoking, people trying to control things that are out of their control is like telling the earth what you would like the temperature to be when you wake up.
Play along, have fun and make smart investments along the way is best way to play.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
The minimal supply of SBD is what has allowed the price to pop higher, in my opinion. There are less than 5M at the time of this post, versus nearly 250M steem. See: https://coinmarketcap.com/currencies/steem-dollars/
I have noticed that the supply of SBD has gone up by over 500K units in the past two weeks, and this is likely due to what many have observed: whales upvoting their own posts to collect SBD and then selling it, which applies disproportionate downwards pressure on the price since whales will inevitably earn the most SBDs by self-voting. To me this just demonstrates that steem should be the only cryptocurrency associated with this platform and SBDs should be done away with since they are not operating as originally intended (a stable store of value).
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit