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RE: WHY ARE PEOPLE BUYING SBDS FOR SUCH A HIGH PRICE?
It's only pegged in theory; there are no mechanisms to prevent it from rising higher.
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.