RE: Is Bitcoin a Ponzi too? A Simple Explanation about Where Does Money Come From for Dummies

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Is Bitcoin a Ponzi too? A Simple Explanation about Where Does Money Come From for Dummies

in steemit •  8 years ago 

I think this explanation is missing something because you don't analyze SBD in this. No one holds steem. People only hold SBD and SP. Where does SBD factor into your analysis?

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True. The main reason is that SBD makes it complicated then hard to deliver my focal point-where does money come from. I will deal with it in the future.

Yes, SBD makes it complicated, but it is the core of the issue. The claim is SBD is pegged to the dollar because it is backed my Steem such that more Steem can be printed to back SBD as needed. This seems to me to provide a mechanism that enables huge inflationary pressure in a financial instrument that can be liquidated quickly, causing a problem if there isn't enough demand for SP.

"No one holds steem"

Lots of liquid steem is being held, currently there's 5.31 million of them which are unvested.

I was speaking in hyperbole. 5.31 million is a very small portion of total Steem.