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RE: SBD Print Rate: 0%

in #sbd6 years ago (edited)

just happens to be following Steem which happens to be near $1.

Here is an interesting chart to test the hypothesis of SBD being linked with STEEM.

https://www.tradingview.com/symbols/spread/BITTREX%3ASTEEMBTC%2FBITTREX%3ASBDBTC/

In fact, there isn't that strong of a link. The ratio has varied from 0.2 in December (SBD worth 5x more than STEEM) to a high of about 1.6 in mid May (SBD worth only 62% as much as STEEM) before reversing and heading back down. What happened in mid May to cause such a clear and rapid reversal after an 8x increase?

Well that was exactly when the the debt ratio reached 2% and SBD printing started getting reduced (and STEEM printing increased)! This had precisely the effect one would expect from the change in supply (though not what one would normally want): SBD got relatively stronger and STEEM got relatively weaker.

The improvements made in HF20 (mostly increasing the 2-5% threshold to 9-10% instead) should be very helpful, although it still may not be enough. It's a step in the right direction for sure.

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I’m not saying link as closely related, more like BTC / alt coins. When BTC falls they all fall. Some faster some slower. But they go in the same general direction. If Steem went to $2 I am not saying SBD would as well but I would expect it to move to $1.25-$1.50+ until something changes to actually peg it. It was $1 a while ago and went up when Steem had a bump.

It is true that all or almost all cryptocurrencies seem to move together to a large extent. I still find the chart pretty interesting (the movements of which show how SBD and STEEM sometimes don't move together), especially the reversal when the soft limit was hit, which seems to say quite a bit about the pegging mechanism. But of course I can't prove any sort of causal relationship from a chart, it could be coincidence or some other factor involved.

Maybe a wager is in order :). You a betting man?
100 Steem and we set conditions and deadline? Donate it to a good cause like @Helpie.

I'm not against making a wager but I'm not sure what we are wagering on? That SBD and STEEM more together to some extent and to some extent don't? We probably agree on that. That SBD probably won't stay 'close' to $1 all the time unless other mechanism improvements are made? We probably agree on that too. That HF20 will improve the peg to some extent? We may not agree on that but it may also be difficult to measure or define.

You don't really need to wager with me though, you can buy SBD for about $1.05. If you are sure of a big pump (maybe to $10+ like last time) then just buy as much as you can. Not doing so would be giving up an 'easy' 10x.

I just wanna say markymark for president real quick.. ok, done