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RE: What Will Happen With The Steemit Rewards After SBD Gets Back To $1?

in #steemit7 years ago

Since the massive jump last year where SBD was trading at $10 - $13 dollars it does seem to have stabilized. I can see the argument that you make but I don't see SBD pulling back to $1 unless something is specifically done to peg it there. Recently SBD and STEEM have both been sitting on roughly the same price which from a market sense i can understand. If people are getting paid in SBD and using it to buy Steem it makes sense that the prices are linked.

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unless something is specifically done to peg it there.

it is. A few witnesses, me included, are adjusting their price feed bias so more SBD gets printed, until the price will settle to $1.

Good to know. It won't affect me massively as i convert most of mine to SP anyway but it has been great to make such gains over the past few months. Without the inflation it would have been very hard to grow the account but as your article said it's better in the long run.
We really do need one stable currency to work from especially if SMTs come online it would be great to have a base to trade from.

Ohhh. I just learned today that that's how adjusting the newly generated supply works. I'm curious to know what has caused the last SBD pump? Were some witnesses doing something over the price feed responsible for that pump? As I can see, the volume of SBD and liquid STEEM supply pretty much dictates the price between the two coins today. SBD inflation can help bring the balance again.

Were some witnesses doing something over the price feed responsible for that pump?

Nothing on that side, on the contrary: when SBD broke the peg outside of STEEM internal market, a few witnesses reacted to adjust to SBD supply (i.e. increasing it).