Our Spotlight Winner of the Week: @klye

Criteria

• Followers are the first part of our selection process, if there are any micro-minnows with good content. If there aren't we expand further.
• Must be financial topics.
• We can agree, disagree, or hold no view of the post's content.
• The content must reflect work and thought. The work cannot include false accusations, baseless assertions, hype, or pump and dumps. See the below reasons for why - this ultimately harms SteemIt. In addition, we don't want to encourage people to upvote something that will harm SteemIt's credibility in the long run and potentially harm users.
• If we highlight your content three times, you'll be qualified for an interview with us, since this means your work is solid.

Our reasoning for starting this was posted in The Coming Disaster For SteemIt and How We Plan To Help. If you're new to this series, we recommend you check that out.

Great Post By Hive account@klye

This post by @klye highlights a great point about Steem Backed Dollars.

First, because Hive account@klye makes suggestions in his post and we are extra cautious about this, we do not endorse or agree with any of his views on what to do about buying, selling, etc Steem, Steem Power, or Steem Backed Dollars. In addition, you should only trade with money that you are willing to lose because losses are guaranteed.

Second, we generally only feature minnows. In this case, we make an exception because Hive account@klye's post does have one powerful insight that reflects some knowledge of economic knowledge:

What that picture above is my latest witness update today. I've set the Steem Dollar yearly gain to 20% APR as well as scaled the account creation fee to 51.337 STEEM worth around $6.85 USD at the time of writing this post. Not only will this encourage people to convert their STEEM payouts to SBD and hold for more profits but also help enforce the peg as well as create demand and stronger hands.

The big key here is that the loss of confidence in Steem Backed Dollar's peg may be an even bigger decline of Steem, as its other currencies inflate at a higher rate than the Federal Reserve. Stated in another manner, you would be better of trusting the Federal Reserve than the Steem Team - and let's face it, most of us aren't fanbois of the Fed. What Hive account@klye gets right on the money (pun intended) is that one must raise rates to bring back confidence and this is one of the problems with the fixed 10% AP[Y] of Steem Backed Dollars (APR is interest charged, but don't expect the Steem Team to grasp basic finance, which is why we correct their erroneous APR). I doubt anyone will listen to him, but he's right about this and the interest rate needs to be moved much higher. Clearly, people are dumping everything from Steem, to Steem Power, to Steem Backed Dollars, and we've accurated observed that Steem Backed Dollars aren't pegged at all, which is a pattern in Dan and Ned's creation of financial tools (bitUSD is a joke, bitGold is a joke, bitSilver is a joke, and on and on and on).

Again, let me reiterate that I don't agree with any of the advice about buying, holding, etc. We recommended selling all Steem a while back and saved our readers from a 95% loss (you're welcome) and we don't see any reason at this time to buy or hold Steem or Steem Power. As for Steem Backed Dollars, well now that is a joke of a name isn't it since most of their existence has been well below one dollar in value. I'm not sure if I'd trust those either. As always, you can be the judge of what you want to do and you should only trade with money that you're willing to lose. There are so many better investments than any of the Steem-triplets in the cryptocurrency community and our shorts against Steem have made bank big time.

Still, Hive account@klye's post is phenomenal about how to handle the Steem Backed Dollar crash as far as raising rates. If Dan and Ned were smart, they'd take his advice.

Don't Forget

We highlighted major SteemIt concerns in retire early with cryptocurrencies last month and those videos will only be up for a few more days. Next month we look at a cryptocurrency that we think may do well and is a much better investment - in our opinion - than the Steem triplets.

Congrats again to Hive account@klye. As for our readers, we hope to see you around FinTekNeeks as we've been some of the most accurate content in the cryptosphere and will continue knocking things out of the park. Again, you're welcome on our advice to dump Steem, saving you 95+%.