Taking take time away from my fun project #adoptaminnow to talk about SBDs (Steem Backed Dollars)
Currently the price of SBDs is at around $9 on Bittrex. This is interesting because the price of SteemBackedDollars is supposed to be pegged to the dollar.
*my bad art
Quick Info you should know to follow the conversation:
- According to our documentation and marketing, SBDs are pegged to a US Dollar. (1 USD = 1 SBD)
- The Blockchain treats SBDs as if they are worth a dollar.
- When you post it pays out it pays as if the peg is working.
- Currently 50/50 payouts are based on SBDs equaling a dollar, so content creators are getting a bonus if they sell SBDs at the current prices.
The Peg works to hold the price of SBDs UP to a dollar, but there is nothing to push the price back down except "Market Pressure". (Selling)
I have seen a couple of posts advocating that the Whales should self-upvote so they can sell the SBDs and push the price closer to the peg. This approach does not make sense to me, because YOU can sell your OWN SBDs.
There are theories about why the SBDs are high, but the Market has currently priced SBDs at about $10 (nobody knows why for sure)
There are mixed feelings about trying to correct the price of SBDs, one reason to try to correct the price is because it looks bad to say our SBDs are pegged when they obviously are not. (Reputation)
Here is the problem with that concept, there is nothing to hold the price down and if the Market decides to pump them again we still have a broken peg. Making this entire argument shaky in my opinion.
My opinion is to let the Markets naturally handle the price of SBDs instead of taking actions to correct them.
Regardless of what anyone else chooses to do, be aware that your SBDs are more valuable right now and if you want to sell them and you don't know how you might wish to seek this information out right now. Nobody knows how long this will last. Many users are using this opportunity to sell some SBDs and Buy Steem Power. I have wondered if that is helping our recent price increase.
Here are some of the antics going on:
Automated Self-Voting (on checkthisout the rewards are hidden in the comments and replies)
https://steemit.com/@rewardpoolrape
https://steemit.com/@checkthisout
Here are some of the other opinions on how to handle this:
https://steemit.com/steem/@demotruk/how-to-enforce-the-steem-dollar-peg-by-self-voting
My advice is just to be aware:
Make your decisions based on your own financial goals.
Check with the Witnesses that you vote for to find out what their views on SBDs are.
If you don't understand all of this, join a trusted community and find a mentor.
Ask questions, but remember you have to trust the person who is guiding you.
My Personal Actions:
I am selling my SBDs because I don't know how long this will last and it is in my best interest to sell at the high prices. I am powering some of the profits up and adding some of it to my "Investment Funds" for future projects I want to invest in. SMTs/Communities
I am treating the site the same way I treated it before.
I do flag obvious abuses from time to time, but even as my account is close to in the top 1000 accounts the biggest impact I can make is a few dollars.
Enjoy, I was hoping to create a simple explanation in laymen terms, please provide feedback below.
