This might be the reason why a SBD is 13 USD worth!

in smart •  7 years ago 

Please correct me if you think my reasoning is not correct or you have more information.

I think the reason is on Page 14 of the White Paper:

https://smt.steem.io/smt-whitepaper.pdf

SMT creation fee
Issuing a smt_create_operation requires payment of smt_creation_fee. The amount
required is set by the smt_creation_fee field of dynamic_global_properties_object.
This field may contain a value in STEEM or SBD. If specified in SBD, an equivalent
amount of STEEM will be accepted, at the current price feed.
Initially, smt_creation_fee will be set to 1 SBD, and no means will be provided
to update it. Updates to the smt_creation_fee amount may occur in future hardforks,
however, so user-agents should read the smt_creation_fee value from the
dynamic_global_properties_object. User-agents should not assume the fee will
always be 1 SBD and they should be prepared to charge a separate fee paid to the
user-agent if the aim of the interface is to enable only a curated set of tokens.
The fee is destroyed by sending it to STEEM_NULL_ACCOUNT.

So how come that a SBD now is worth 13 USD?

The market speculates that there will be a huge demand for SBD because of Smart Media Token creations. Initially the price will be 1 SBD, but what if Steem gets overwhelmed by requests for SMT creations and the fee rises to 10,000 SBD?

The amount of SBD cannot be created out of thin air, only through posts. And many SBD holders might choose not to sell their SBDs only for 1 USD. If you cannot by sufficient SBDs, you will not be able to do the ICO of your SBD. There are less than 4,000,000 SBD available and the amount of SBD available will through SMT creation as well shrink, as they will be destroyed.

This creates scarcity and the result is rising prices.

This is what I think is going on. As always this is only my opinion and no investment advice.

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Interesting point. Hmm. Maybe I shouldn’t convert my sbd.

Yeah... hart to resist... theoretically everything is possible... if they insist that the creation fee has to be paid in SBD also a 100 or 200 USD SBD is possible... Although the SBD were not created for that purpose...

crazy who would have ever thought

that is great article & very useful

@mexbit
Resteem

Thanks for resteeming!

Really interesting with steem dollar price. I don't mind why SBD worth increase? This time for earn more profits.
Up-Voted @ Re-Steemed.

Thanks for resteeming!

Agreed your opinions @mexbit. Smart media tokens introduced then SBD and steem mooning.
upvote & resteem.

Yeah, but when exactly will they be ready with the implementation? I can hardly wait...

i think you are absolutely right

I agree that is probably what is going on and what will proabably continue to happen. Love to see it keep climbing!

This would mean that by the judgment of the market SMTs will be a huge success.... And I think the market is right... Specialized Ethereum contracts no normal investor can really audit... @ned really hit the nail with this one.... There is a huge market for such a standardized ICO tool which everyone can use.

Interesting, I wasn't aware of this and it makes a lot of sense... All the more reason to Steem your ass off... as if we needed more reasons am I right!

I was wondering why suddenly somebody would be willing to pay 13 USD for this... Until I read the white paper.. Hopefully they implement that soon!

I don't usually re-steem much but I am going to make an exception in this case as I think you nailed it and this is very relevant to the entire Steemit community as a whole.

I think SBD price rise up and happen huge demand over $13, after the SMT creations. You give more info @mexbit.
Resteemed.

Thanks for resteeming!

Thanks for resteeming!

Amazing article and it is really very beneficial. Really interesting and I completely agree with your opinions. Very well writen, I like it. Thanks @mexbit for sharing this post. 😊💚💙💜

I'm hoping it goes through the stratosphere all the way to Mars and never hits bottom, ever.

i completely agree that the SMT had unforeseen results and they might even be better than expected!!! There aren't many SBD so the price will keep on mooning :)
Great analysis!
Thanks for sharing.

i also think so

great article ,thanks for sharing

interesting and useful
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excellent market analysis & impressive article. nice post @mexbit

@resteemia
reteemed & upvoted & commented & followed

i agree with you.upvote and resteem your post.

@mexbit - Sir you explained it very well... This is very true Sir... You found a nice explanation for the current price up...

+W+ [UpVoted & ReSteemed]

That is really price a STEEM & SBD.

Upvote Resteem

maybe thats a xmas gift for steemians ,hhahahhhaha @mexbit

It you are right..........////////

That is very import information. thanks for sharing
For your post propagation.
Upvote/Resteem

so can we expect it to go more high that this

Not the best investment option right now but i scared too with such a huge rise in the prices

Yeah..if we think that it's great platform to take a long .....just outstanding performance is going
to stèemit user..hope so it's the best gift of cristmas

sbd creation and circulating supply might be the reason for sure after reading your post i think so too great info

very valid point you make in this post i think other users on steemit who are curious to know about this change should know too resteemed

let the price rise we are enjoying every bit of it and hope to see more people jumping in the steem block chain great post @mexbit

This is probably why they took away the Convert option under SBD, so that people would stop destroying SBD in conversion and hiking up the price.

Excellent post thanks for sharing.
100% like and resteem

No need to correct i think you are very right in this as far as i know you are the only one who have come so far till the exploration about the high prices

Great summation, bud. I have been looking for an answer to this question for a while now and your theory really fills in the gaps. Thanks again!

Thank you so much, friend! sbd will continue to grow? But what about steem? . A year and a half ago I put a lot of bitcoins here. To justify my investment, steem should grow four times. 😘😗😙🤗🤗

the supply is increasingly rapidly lets see what happens
resteemed

sbd creation is difficult so thats why so much boost up resteem

scarcity is there the prices keep jumping high but how long it would last

sbd will come down to the dollar mark again its just a matter of time from now on

Yes, that's a problem too though isn't it? I bought 4 SBD for near $60. If I hold on to it I'll almost certainly lose $56. Honestly... I don't see the point in having 3 currencies... what is the point of steem coins?

The market speculates that there will be a huge demand for SBD because of Smart Media Token creations. Initially the price will be 1 SBD, but what if Steem gets overwhelmed by requests for SMT creations and the fee rises to 10,000 SBD?

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