SBD went up?! Again?
Some people don't understand that volatility works both ways: you tend to focus on the price drops, but inexplicable rises are also possible. Although in case of SBD, it was pretty obvious it would go up again. It is really funny, especially with people posting stuff like "SBD is dropping to $1"
Not pegged!
Although some people would like to see the value of SBD pegged to the US dollar and it still says so on steemit:
"Tokens worth about $1.00 of STEEM
SBD is (still?) not pegged and actually the SBD production has been capped, that is why if you chose 50/50 payout you are now getting SP, SBD and STEEM. So that increases scarcity of SBD and therefore the price, as basic economics would explain.
long term
I do not know what the best or fair SBD/STEEM exchange rate is. What I do know is that it will keep fluctuating and I intend to make a profit of this 🤑
I think the internal market is a really smart value protector: it ensures that a large volume of sales happens amongst STEEM holders, in other words people who would benefit from high prices. I think this creates a buffer for "pump & dumps".
what to hold?
I forsee a rise in value for STEEM and having a lot of SP is still my main goal. I do not really understand SBD, but that has not and will not stop me from making profit of the changing SBD/STEEM rate. For some reason, every time STEEM increases in price, SBD increases more (well, it happend every time since I started on Steemit in July 2017). I almost hit myself over the head for buying STEEM and not SBD.
What do you do? Hold SBD or exchange it ASAP for STEEM?
My previous post on SBD