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RE: WHY ARE PEOPLE BUYING SBDS FOR SUCH A HIGH PRICE?
There are no secret features (except for being able to use it for bidding bots, but not STEEM). It's just hot now among speculators who read the chart and see it being strong- but with no knowledge of the fundamentals. SBD is actually supposed to be pegged to the USD... so clearly that's not working.
It's only pegged in theory; there are no mechanisms to prevent it from rising higher. However, there are mechanics to prevent it from falling below $1, which is one of the reasons why some investors like it. But yeah, I agree that it seems like people buy it without actually learning about it and its fundamentals!
This is a very good point. I posted some ideas about mechanisms to improve the pegging to the dollar a couple of days ago. https://steemit.com/speakyourmind/@josephsavage/pegging-sbd-to-the-dollar
What do you think?
It was interesting, but I honestly don't know how this will affect the blockchain in the long term. However, my first concerns with printing more SBD is the potential to flood the market with Steem as well, if the price of SBD falls to less than $1.
That's a fair point, since the mechanism to peg SBD from dropping below $1 is a conversion to STEEM.