Thanks! This is a good explanation for price stable currency in general. But the mechanism for SD is different from Bitshares.
In Bitshares it's possible to create new BitUSD whenever market demands it. But Steem doesn't function that way, it will only create new SD for writers and amount is determined by value of the whole blockchain. So the response for market demand will be slower than it is in Bitshares. How it will eventually play out is something that I'm trying to wrap my head around.
Thanks! This is a good explanation for price stable currency in general. But the mechanism for SD is different from Bitshares.
In Bitshares it's possible to create new BitUSD whenever market demands it. But Steem doesn't function that way, it will only create new SD for writers and amount is determined by value of the whole blockchain. So the response for market demand will be slower than it is in Bitshares. How it will eventually play out is something that I'm trying to wrap my head around.