RE: STEEM DOLLAR Will Fall To $1 USD : Here’s Why

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STEEM DOLLAR Will Fall To $1 USD : Here’s Why

in steem •  7 years ago 

I need to do more research into the economics and steemit white paper. But why the pump in the first place? Doesn’t it scare investors to put there money into something that supposed to be tied to the $1 value. Am I missing something?

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SBD aren’t supposed to be a speculative asset (something for investors to put money into). Steem and SP are the things people should be investing in. SBD is supposed to be a stable currency so that businesses who want to launch a platform that runs on Steem can predict their future cash flows.

If a business wants to sell goods or services for SBD while SBD is a speculative asset, their customers are incentivised to hold on to their SBD in the hopes they will increase in value, rather than spending them to purchase goods or services, which are not likely to increase in value.

I hope this explanation makes sense.

Yes thanks for responding. With that explanation I hope the community can work together to figure something out.

Good job @crazyfisherman I could not have answered it better myself :)

Thanks @buggedout I really appreciate it.

Thank you! That's the question that's been going around my head all the way through reading these comments. Now it all makes sense.

No worries. Glad to be of assistance.