Steem Dollars is supposed to be the equivalent value of one dollar, however, the price seems to be all over the place.
For example, Steem Dollars (ticker symbol SBD) is up 26% today.
That puts their value at $2.02 at the time of me writing this!
With the value of SBD supposedly being tied to the value of a dollar, why the heck is this happening!?
Although anyone who currently owns Steem Dollars will likely be happy about the price rise, I feel that this could actually be a bad thing in the long term.
Why, you ask?
Well, if the value of Steem Dollars isn't tied to any actual dollar value amount, and the price can fluctuate this much in one day, that means there is the possibility for the value of SBD to fall just as much in one day.
Now, instead of knowing you have X amount of dollars, you will have no idea how much money you are actually holding.
This makes it really hard to judge what kind of income you are making or will be able to make in the long term, because you can't just assume a specific value for your Steem Dollars.
In the end, Steem Dollars (SBD) will just be another crypto currency that is subject to speculation and dramatic price drops and jumps.
So, there can't be any stability in their value, which was supposed to be the whole point of the existence of Steem Dollars in the first place!
Let me know what you guys think about the value of Steem Dollars and whether or not you think they should be tied to an actual dollar amount.
Is this a good thing, or a bad thing?
Thanks for reading!
We do need stable coin, if we intend to use crypto for day to day transactions.
Specifically for transactions that take time, for example if you want to pay for building a web site. It can't be the case that the value of the project is half or double at the end of the project.
Hopefully the community can figure this out. I really believe that crypto can become a day to day trading tool, but is has to be stable enough to be really useful!
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I'm not quite sure what to make of this either. I did notice the same thing myself today and thought, "how strange." Steem itself was down about 12% on CMC, while SBD were up substantially. I still don't understand the difference between "STEEM," and SBD. All i know is i'm hodling SP while the others can be traded. After noticing this I'm not sure what to do w/them!! I was gonna post on this too but you beat me to it ><. Thank you for informing myself and the community!!
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I've lost too much money on steem now. I'm hoping there is a plan to bring it back up. As we speak it is only .71. Not sure if I should cut my losses or hang in there in hopes that in a year or two it will go up significantly.
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Hope you hung in there!
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I did and I'm very happy I did!
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I agree with everyone that this is very confusing, as steem dollars now are at about 12 usd value. Who is buying SBD at this price and why? - And why is nothing really happening with the price of steem, aren´t they related? - Also just read an article talking about how steem actually looses half its dollar value each year, because the amount of steem doubles, so is to a good idea to hold steem long term? should i hold steem power or steem dollars instead of steem?
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That article was outdated. Steem inflation rate is at 9.5% a year, and will continue to fall by 0.5% each year until it reaches 1%, less than the USD inflation. The reason why I wouldn't worry about inflation is two fold.
For one, if you power up, it's inflation proof. Meaning whatever percentage of the total Steem that you powered up represents, you will have when you decide to power down. So if you power up 100 Steem when there are only 1,000 Steem in existence, you'll own 10% of the total shares of Steem. When you power down, and lets say there are now 10,000 Steem in circulation, that 100 Steem is now 1,000 Steem.
Secondly, most of the Steem that is being created is not put into circulation. It's mostly going into Steem Power which locks it up. So although there may be a high inflation rate, it's not impacting the total liquid Steem in circulation.
As long as the growth rate of Steem matches the inflation rate or exceeds it, Steem will continue to rise in value.
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Thanks for the info, I did not see the update :) Had no idea that powering up had this effect, very useful information and thanks for sharing!
I have been studying up on the subject because I want to invest more in Steem, and I must admit that like many others it created more questions than answers, i.e. the SBD has had a name change in the updated white paper to "Steem Blockchain Dollars", and from what I read it is no-longer pegged, as it is traded freely on exchanges and prices decided solely by the market. Also read an article where the witnesses discussed if they should attempt to "correct the price" of SBD, which made me conclude that not even a "soft peg" i.e. the guarantee that 1 SBD = minimum 1USD, is no longer in effect, but perhaps I have musunderstood something. It left me wondering, what is the point of having SBD and is there still a usage for them?
Article link: https://steemit.com/sbd/@aggroed/the-benefits-of-inaction-a-defense-of-a-high-sbd
If you have some knowledge on the subject I and others would greatly appreciate it :)
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well TBH I think releasing the SBD from USD peg was the wisest thing, the USD is going further down this year now that China begins to challenge the petrodollar with gold-backed Yuans
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Steem is hanging around 7 to 8 dollars these days, and I personally am happy about that!
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And I did the right thing when you were feeling unhappy... I bought more! Now I might be happier than you! :D
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No, I am very happy now :)
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steem dollars is supposed to be for trading thats why theyre planning to peg it to 1usd
whereas steem is good for long term investments thats why it can be converted to steem power.
gosh im just a noob at all of this, the volatility of the system makes you wonder indeed.
sbd back to 2.90+ same with steem.
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Hi Jacinta!
I have invested in both STEEM and SBD. Is that madness?
I'm a total noob on in the world of crypto, but I still don't really understand which one of the Steemit cryptos is better to hold and what are the pros and cons of each.
Thanks in advance to you or anyone else for any input.
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I just found this:
https://globalcoinreport.com/heres-take-advantage-steem-dollars-sbd-run-right-now/
Although it's dated, it seems to clarify things ... a bit! ;)
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I have basic knowledge of hodling and trading. Lol
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Thanks for the link!!!! 🙏🌼🍃
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Has something changed in the meanwhile? Cause I´ve seen a video from @louisthomas and I´m not sure, if the SBD can be stable. Greetings
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Does anyone know if Steem Dollars are still convertible to at least 1$ USD worth of steem?
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