How the Steem Dollar Peg Works by: Nathan Hourt. I wanted to add a few to this great share he presented us with. https://steemit.com/steem/@modprobe/how-the-steem-dollar-peg-works
The steem dollar can be looked as a federal reserved note. It assures good and services with it's trading power.
DEFINITION of 'Federal Reserve Note'
The most accurate term used to describe the paper currency (dollar bills) circulated in the United States. These Federal Reserve Notes are printed by the U.S. Treasury at the instruction of the Federal Reserve member banks, who also act as the clearinghouse for local banks that need to increase or reduce their supply of cash on hand. This term is often confused with Federal Reserve Bank Notes, which were issued and redeemable only by each individual member bank, but phased out in the mid-1930s.
Read more: Federal Reserve Note Definition | Investopedia http://www.investopedia.com/terms/f/federal-reserve-note.asp#ixzz4GwrZx2Lb
Crypt o-currency is completely different but the steem dollar principle is like the above definition. Hopes my 2 cents helps a little:)
