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RE: STEEM vs SBD....DO NOT UnderEstimate SBD!!!
doesn't SBD always peg to the dollar? I don't fully understand how it can even breakout... I actually don't fully understand how SBD and STEEM and authoring rewards work, guess I need to do more research! :S
See this interview:
thx for sharing!
It is no-longer pegged. And anyway, it was never hard pegged, only soft pegged. The name of SBD was changed in the updated white paper, aka the blue paper, to Steem Blockchain Dollars https://steemit.com/steem/@steemitblog/announcing-the-steem-bluepaper
https://steem.io/steem-bluepaper.pdf
Hope this helped answer your question :)
This is the most up to date white paper and still has the peg to the dollar via interest rate adjustments in the code. https://steem.io/SteemWhitePaper.pdf
"The primary concern of Steem feed producers is to maintain a stable one-to-one conversion between SBD
and the U.S. Dollar (USD). Any time SBD is consistently trading above $1.00 USD interest payments
must be stopped. "
Bottom of page 11 under the Steem Price Feeds section.
The Blue paper is a dumbed down version of this designed for everyone. If you are seriously investing and telling others to invest as well, you should really be reading from the source in my opinion.
What are you talking about and could you be more arrogant? I never told anyone to invest in anything, only provided a link to give a new user the ability to study further on his own. The bluepaper is for the layman sure, but that is exactly where someone new to this should start searching for information, because the whitepaper is overwhelming to many just starting out..
If you bother to follow the witnesses conversations on the subject, you would know that they have discussed for months how to react to the SBD, and whether they should even attempt to "peg" it, so far they have not intervened. Also SBD is traded freely on exchanges, and with them not reacting, the price is really decided by the market, at least from my humble understanding of it.
But I am just a beginner, and I never claimed to be a know-it-all, so please feel free to come back with another negative and semi insulting answer.
Sorry you took that last comment negatively, it wasn't meant to be, but I could have phrased things better. On the other hand, yes I could have been more arrogant too.
Just saying the blue paper took out/abridged quite a lot of important information to make it easy to understand. The white paper goes into it in detail to truly understand the workings of Steem. Only higher level you can go from their is actually reading the code which is even more daunting than the whtie paper.
As far as white papers go 32 pages is on the short side of them and it does give you some legs up in using the coin and the steemit platform to its fullest. As well as other dApps built on Steem.
By witnesses and developers doing nothing they are holding true to the code as it is coded and letting (dare I say it) the steem and steem dollar bubble play out as it will based on the open markets. Which in my opinion is the best thing they can do for the coin.
Again sorry for the negativity at first. Please accept my up vote on that comment to give you a more positive vibe from me as an apology.
Lol apology accepted :) I too am sometimes too quick on the keyboard and my comments comes across more negative than intended... I completely understand what you are saying about the whitepaper vs bluepaper, I simply think that the bluepaper is easier to understand, and therefore a better place for a complete beginner to start, which is why I recommended it to a newbie, as Spock would say "it's only logical". ;)
Sorta. The interest rates in steem change to make buying and selling more attractive. Like the fed does with interest rates that influence the bond markets. Since not many ppl in crypto care about a safe return on principal, and the principal is usd not steem. That concept seems broken. Being at 5 SBD and steem and holding for a decently long time now really supports this. The fundamentals scream short while technicals scream long. Given how week fundamentals in crypto are I'm staying bullish on SBD and steem and holding rather than power down. But not buying more or powering up.