RE: What Pegs Up Must Peg Down - Is SBD Really A Tether and Is It Doomed?
So unless that price can be got back to $1 pretty damn sharpish, I was right and they were wrong, it's pretty bloody binary, there can be no in between.
Disagree. If literally nothing had been changed in the SBD code, it is a mathematical fact that there still would not be enough backing to support SBD at $1 given the current price of STEEM (or at least at recent lows; technically I'm not sure about the current price, I haven't recalculated). Now we can't say for sure that the price of SBD would be below $1. Perhaps that could have worked out through nothing more than wishful thinking. But in reality, the system would not be guaranteeing what it is supposed to guarantee. Again, this is with no action from the devs/witneses.
The crypto market has just been too harsh to Steem this year (as it was in 2016) for everything to continue to work perfectly. Interestingly, in 2016 everyone blamed the 95% decline on "hyperinflation". Well, here we are in 2018 with another 95% decline and no hyperinflation. It seems things are a bit more complicated.
It is a mathematical fact. Ohh really, lol ... look where we are now.
Yes. About 600K SBD was printed after HF20. If you subtract that out, the supply of SBD is still too high.
When it comes down to it, Steem just can't handle 95% price declines without things starting to break and SBD won't be the only thing to break either. Development projects will find their budgets strained, exchanges will avoid listing Steem and some may even consider dropping it, nodes will start to shut down further centralizing the whole network around Steemit Inc, etc.
We need to get our act together when it comes to communicating Steem's value to the market. Otherwise SBD will be the least of our problems.
We are on the same page Smooth.