How much is SBD's really worth? Will SBD Rise Again?

godchild (48)in #steemit • 7 years ago (edited)

Steem Dollar-SBD is constantly declining. From bull run to its all-time high of that time 14.8$ on December 2017, it has lost 87% of its value. (Highest Value Till Now is 1SBD=22USD on May 18,2017)

Steem Dollars(SBD) price for today is $1.8389. It has a current circulating supply of 14.2 Million coins and a total volume exchanged of $2,306,261(as reported by https://www.coingecko.com)

Screenshot (8).png
screenshot from coinmarketcap.com

How much is SBD's really worth?

According to Steemit official exchange, SBD is pegged with US Dollar in equal ratio. i.e 1SBD= 1USD.
If So, Why is it's valued More in Outer Exchange? Can Someone Help me understand this?

Value Drop was seen before too

Just a quick search in steemit archives I found that SBD Price had fallen sharply within few days period on June 2017. It was posted by @hengary on his post here https://steemit.com/cryptocurrency/@hengary/steem-dollar-sbd-why-is-it-going-down-so-much-will-it-rise-again

Also, by reading a reply by @blakadder

Considering the HF19 created a serious drop in posts, 4th of July weekend and people spotting big flaws in the voting system its no wonder its dropping

It seems there was a bug in the voting system due to which SBD price Dropped. ( I had not joined Steemit back then

Current Drop was Previously Predicted

5 months before @jbn wrote a post and claimed SBD will drop to its real value i.e 1SBD=1USD and also suggested SBD be dropped from STEEMIT. You can read his post here, https://steemit.com/utopian-io/@jbn/why-sbd-should-be-dropped-from-steemit-platform

Will SBD Rise Again?

There are many steemians like me who don't understand the technical aspect of Steemit. I tried to search various sub-reddit, quora to find how this SBD market exchange works but no luck. It would be great if someone helped people like us to understand this.
Will SBD Rise? of Just stay at the pegged value of 1 USD? And Why it is falling rapidly?

From Basic economy aspect if supply is greater than demand there is fall of price and vice-versa. But, What is equilibrium point for SBD if it is constantly being Created and Destroyed?

I know SBD will be Destroyed when we convert it to STEEM.

Steem Community can you help me Understand this? I've been scratching my head since last few days

#steemitblog #sbd #exchange #blockchain

7 years ago in #steemit by godchild (48)

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jbn (60) 7 years ago

First of all thank you for the mention.. i still believe that SBD will come down to 1$ price for which it was intended...

Its good that you already know that sbds get destroyed..

Once upon a time, steem price fell to 0.07$ and it was driving the entire platform into the ground. So at that time, SBDs were created and they were pegged to 1USD to provide stabilitiy to platform..

You can choose your payouts to be delivered half in SP and half in SBDs. You can use the SBDs to do many things like buy stuff from market place, buy upvotes from bots etc..

Now coming to your point that why steemit price is above its pegged value.. (its because of high demand). And voting bots are to be blamed for this.. people today are now so much used to buying an upvote from bot (including you and me both), that we cannot stand the idea of our post going into the hole with 1.5$ tag on its neck. So it is us who keep the demand high of sbd due to which, there is always a pump on exchanges.. due to its stability and high demand, sbds remain on pumped value.

Witnesses have tried several means to restrict the price of SBD yet they could not bring it down to its original value.

As per my estimation, value of SBD has not decreased from 2.5$ value. The vakue you are seeing right now (1.8$) is because of overall market correction and low bitcoin prices..

Hope this long reply will clear a lot of doubts in your mind... if you have further queries, do respond..

P.S. I am self voting this comment for visibility..

$0.07

2 votes

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