Why is SBD resistign the BTC down pressure while STEEM is dropping heavily?
How/why is SBD not affected by the current BTC down trend, and still stays worth around 0.95$ while STEEM is struggling heavily at 0.75$? What is giving SBD its stability?
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SBD was meant to be a regulated coin which was to be pegged at $1 and it is reacting to what it was meant for while Steem is not regulated as it can go up any time and at the same drop down like Victoria waterfalls.
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That's because while Steem is a liquid currency, whose value fluctuates just like any other coin, SBDs or Steem Backed Dollars were designed to be pegged to the US Dollar. So, while the price of Steem will be affected by market forces, SBDs will always be valued somewhere around $1 US. SBDs were designed this way to give businesses and other individuals who are not used to the volatility of cryptocurrencies a more stable and somewhat familiar coin to trade with.
Nonetheless, it is important to note, that the current mechanism pegging SBDs to $1 US is not perfect. That's why it has dropped to $0.8 US and increased to up $12 US in August and December 2017, respectively. This, however, is going to be addressed by the upcoming Hardfork 20 on September 25, which should make the SBDs more stable at $1 US.
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Sbd is like Tether 1SBD = 1 Dollar this why is resisting and the steem blockchain this time not dropped to much sbs only steempower
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