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RE: Witness Discussion – SBD price and reverse peg

in #witness-category4 years ago

I like the idea, but I don't like the idea of a flash crash. Can't there be a rollout? $1 steem buys $0.2 SBD today, $0.25 a few days later?

I personally feel SBD is damaging the price of steem.

  1. 100% power up should not be punished. It should be the easiest option. But it becomes especially problematic when combined with 2.
  2. Do I trade my sbd and power up? What if SBD goes back up again? How much much money would I lose out on? Right now, SP should only be recommended for short term speculators looking to nab some quick curation rewards before powering down. Everyone long term needs liquidity as growth is randomly divided between two coins.
  3. You have to have steem to convert it. If you can immediately market buy back for profit, that should put upward preasure on steem any time sbd creeps. Which it still will.
  4. Lying to new users about payouts , increasing the skill curve for new users, rewarding new users who look for ways to game the system over those who don't, just overall rubbing the guts of cryptoworld on new users,when steem has the benefit of being the one crypto attracting people outside the ol' boys club is dumb. Holy shit it would be easier for me to get people started if sbd didnt require its own lecture.
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can't there be a rollout?

That is certainly possible at the cost of some code complexity.

EDIT: Your other points are quite good. I didn't notice them at first, but thank you for writing those. I would encourage others to consider them as well.

Do I trade my sbd and power up? What if SBD goes back up again? How much much money would I lose out on?

This is actually a common decision for most investors. Where do you invest and when? What are the projected gains or potential losses? There's no way to protect investors/speculators from their own investment/speculative decisions. Asset prices can rise or fall based on a multitude of factors. That's just part of the game.

Holy shit it would be easier for me to get people started if sbd didnt require its own lecture.

There are certainly some aspects of the Steem blockchain that are presented in a much more complex
and in an essentially unnecessary way. Some of it has to do with the blockchain design, but a lot of it has to do with a general ignorance of currencies/assets/economics in the first place. Even if we were explaining an investment portfolio with assets and cash accounts, most people would be confused and find it difficult to grasp at first. And that's essentially what Steem has to offer: an investment token and a cash/commerce token. One offers investment and the related "investor privileges" and the other offers cash and liquidity. The only problem we have is the pegging issue with the latter and the learning curve for buying/selling/converting the token, which is something that's foreign for nearly all non-crypto enthusiasts anyway. We've all had to learn how these things work, so we shouldn't forget that people who are completely new to crypto are undergoing the same learning process. It isn't something that's exclusive to SBDs.

Basically, if the peg "worked," SBDs are just Dollar equivalents or placeholders. There's not much more explanation needed for it. Other than that, you're explaining the difference between the Dollar equivalent (SBD) and the investment token (STEEM) - a token which requires much more detail, since it can be bought/sold, powered up/down, extends blockchain privileges, and would potentially have much more price volatility.

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STEEM 0.38
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