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RE: Bounty 20 Steem: Should we fix SBD?
Correct me if I'm wrong but SBD merely guarantees you a dollar's worth of STEEM if you choose to redeem it with the blockchain correct?
So it's merely a price floor. By holding SBD you are guaranteed the purchasing power of a USD. Nothing more!
If traders are driving the price of the SBD up, that's merely a bonus. The instrument doesn't promise you that at all.
Would I be correct in saying SBD has a price floor at 1USD but no ceiling?
Yes. What I am saying is that this is a design flaw relative to its purpose which is to represent USD
Right. If I had to pic a flaw.. that's the one I would pic! haha.
For Muse, this design flaw is good. Since we need to guarantee that artists and rights holders get the purchasing power to pay their bills to allow them to continue focusing on their music career.
I'm new to the environment and I think this question right here is one that is helpful for newcomers to understand. I admitily need to look into it more but this entire post sounds intriguing.
I agree with you, we cannot predict the Market globe that control by trading market. It depend on how many trader use sbd as payment tool. When the moment sbd many use it will up, otherwise when this sbd rarrely use, it will fown. It is system.
Yes, at least to an extent. That doesn't mean it can't trade below $1 for long periods of time. We've seen that happen multiple times.
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