Steem Dollars (SBD) and Steem

in steemit •  8 years ago  (edited)

Hey all, So What is the difference between Steem Dollars (SBD) and Steem ? and how should I use them ?
thank you

steem-dollars.png

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SBD are Steem roughly equivilent to 1USD at a "preserved" value. This balance can fluctuate based on the market price of Steem and SBD across multiple exchanges.

Steem is money you can use to power up (invest into Steem Power) and is not in any way market tied.

Both can be sold for Bitcoin on an open exchange.

i'm not sure what you meant there by a 'preserved value' - but this webpage shows the value of SBD in USD and currently it is around $1.5: http://www.steemdollar.com/

Yes, (according to the FAQ) Will 1 Steem Dollar always be worth $1.00 USD?
The market value of a Steem Dollar is dictated by the supply and demand of the token. Therefore it is possible for 1 SBD to be worth more or less than 1 USD depending on market conditions. However, the network's SBD conversion feature serves as a mechanism to hold Steem Dollars within a small margin of the value of USD. https://steemit.com/faq.html#Will_1_Steem_Dollar_always_be_worth__1_00_USD

that is not a very precise description in the FAQ, it would really help if they updated it to make it clearer. presumably then the 'small margin' allows the value to go up as high as $2.5 - since that's the highest I have seen it. I don't really understand what the comment about the 'conversion feature' is referring to, do you?

It would help if it was clearer. All I really understand is that they have different values, and as far as my experience has shown, Steem is more useful for boosting Steem Power while SBD is really only useful to save, sell, or exchange for Steem.

i think they may get rid of sbd at some point

ill be honest. i have no idea but ill wait for an answer

Thank you all.