Why Steem "Backed" Dollars are funny money

in steemit •  8 years ago 

The pegging mechanism is incompatible with the incentives in place. But it is useless to argue about the fundamental flaws from a theoretical point of view when there is an undeniable empirical evidence like this:

(with BTC nearly flat during the same period)

Please cash out while you can, and be safe!

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Ask yourself, who is buying Steam Dollar for what reason?

Nobody new will buy steem dollars, they buy steem. The problem is everyone earns steem dollars for their posts, so there will be constant sell pressure. Now that there is a direct way to sell them they will get dumped too, causing a sale like there is today.
This is the first big test of the dollar peg, I guess we'll see if it works.

Who: the gullible. Why: because speculation.

You cannot spend them anywhere, and their so-called "interest rate" is actually debasement.

Yeah the concept of steem dollars is my least favorite part of steemit.com
Seems like the community would be better off with out them....