Hello, my steemit crew. I see the price of bit coin is tanking and steem is following it, naturally. On another note, it was reported that SBD is now worth $0.91 USD, which is pretty low for the SBD.
Well, to be fair, this is to be expected. There are too many short term profiteers on steemit for it not be the case, especially after hard fork 19 .
Why? Well, HF 19 introduced an assload of SBD into the steemit universe, and as a result, the price of steem relative to sbd went up making the SBD price of STEEM almost exactly what the USD price of steem was. This was awesome because now the SBD really did appear to be pegged to the dollar.
However, I suppose this may have been intentional but also the victim of a miscalculation. From my point of view, it seemed like there was way too much SBD on the internal markets to not eventually push the SBD price of steem to over that of the USD price, thus dropping the value of the SBD.
Now we have the issue of SBD prices today. The most common means of turning Steem into Fiat dollars is by using SBD, I think, I have never done it. But, because there are many short term profiteers on Steemit, and also because there is a huge influx of SBD on steemit, these two factors combine to create a surplus of SBD on the market, eventually driving the price of SBD down. This I think, can cause the value/price of steem to drop, and not just relative to Bitcoin.
I suppose the increase in SBD payouts was supposed to be countered by a subsequent increase in Steemit popularity, you know, more people equals more ways to split the payouts. I can even see where this may be the case in the future and I can't really blame the people that turn steem into cold hard cash. I think it's why we are all here and many of these investors help drive the value of the steemit platform up.
So for now, we will probably have to deal with a seriously unstable market. On one hand, the SBD supply is very high and on the other, the current state of affairs is sure to piss off some people. The latter is probably actually happening right now as a few days ago, a large steem holder powered down and is selling off steem like crazy. As a result, the price of steem already took a hit. For all I know, the current SBD surplus could have been caused by this one person but, I gots no proof of that, nor does it matter.
I would just like to leave you with one bit of advice. If you believe in Steemit like I do, do not let yourself be distracted by the ones that don't. Those who quickly sell out as soon as market values experience a hiccup are more than likely losing. Stay firm and power up as much as you can. Be the rock that the steemit platform is built upon.