Steem Dollars, one of the three steem network core assets seem to be a crypto investment with a very good proffit/risk ratio and here are the reasons.
bitUSD -and other bitAssets- peg works
The so called BitShares bitAssets or SmartCoins work in a very similar way to Steem Dollar. bitUSD for example, tracks the value of the US Dollar and have 100% or more of their value backed by Bitshares currency. Despite its low liquidity and small amount in circulation (currently 100k bitUSD) the underlying mechanics have been working flawlessly for more than a year since BitShares 2.0 launch.
Read more about Bitshares price stable cryptocurrencies.
Steem Dollar is gaining more traction than bitUSD did
Currently there are only 108.198 bitUSD in circulation (4,7%) in contrast to 2,302,223 SBD. But also the liquidity of SBD´s is much better, ranging from 50-100BTC daily volume just in poloniex, which seems low but its lot more than the bitUSD figures.
Steem Dollar is very similar to bitAssets
Both Steem and Bitshares are technologies share the Graphene core and besides it´s differences, specially rewarding the emission of the assets, the underlying technology works pretty the same way.
Steem Dollars is being traded at a discount price
Right now, you can buy SBD at around 0,86USD. And remember, there is liquidity. This puts a potential proffit of up to 16% (0,14USD) in the hands of the investor.
Steem Dollars pays interest
Also SBD earns 10% of interest APR in weekly payments.
So if we expect the peg to work correctly in the future as it did with similar BitShares assets, and we enter a position today, in a year we would at least earn 10% in interest plus a probable uptrend towards peg price of 1 USD. This could mean a potential proffit of 0,24USD per SBD, or 27,9% in one year.
You can exit your position anytime!
As the interest is payed regularly you could exit your position anytime if the value of SBD rises.
It´s not just about trusting in this great platform but also knowing that the code works and as always, putting your money where your mouth is.