Steem v0.19.5 Witness Update
View this post on Hive: Steem v0.19.5 Witness Update
Sun Yuchen is a liar, thief, charlatan, and all around cunt. But I don't need to tell you that. Find me at Hive, where we are glad to be rid of him and all of his fake followers, sockpuppets, and thieves.
Hello @pfunk
I see someone who really meant well for steem ecosystem. To cut chortle your date to take care of our steem is one sacrifice worth commendation! This goes to tell the voting public to be careful on their choice of witnesses. They must make sure only Steemians who has steem at heart are voted. Thanks for the sacrifice.
I would like you to shed more light on the implication of pegging sbd to $1,as I don't seem to get the real point.
Regards
@eurogee of @euronation and @steemstem communities
Thanks for your comment @eurogee
You're right in that I didn't go into much detail to explain why a peg of 1 US dollar value for 1 Steem Dollar would be a good idea. There are multiple advantages a stable-value cryptocurrency token has for commerce over a floating-value token such as STEEM or BTC. And using Steem to host a stable-value cryptocurrency offers even more.
A stable value token brings trust in pricing to both buyer and seller. I'm not sure how it is where you live, but using the US dollar, we have a general trust that what costs $2 today will cost $2 tomorrow. Prices do change over time, and some commodities change prices quicker. But a dollar still has the same general value day to day. The stability of the US dollar contributes to the strength of the US economy.
I imagine Venezuelans would be very happy to be using SBD in their day to day transactions and savings instead of the bolivar right now. While that's an extreme example, I believe such a de facto stable-value token would be very useful in other economies that aren't in a hyperinflationary tailspin, but still experience negative economic effects of too much inflation or even deflation.
A stable token reduces the speculative anxiety of economic participants. Recently there was a day when STEEM's dollar equivalent value went up over 25% on the markets. What might have cost 5 STEEM the day before would have cost 4 or less STEEM after the market rose. And in a dynamic market, someone might choose not to spend STEEM because they believe it may go higher. Or someone might choose not to accept STEEM because they think it will go lower. This is speculation, and the fear or anxiety of the unknown future puts friction in economic behavior. This is not good for an economy.
Another benefit specific to pegging to the US dollar is that because of American economic and cultural dominance, the general value of a dollar is known to more people outside of the country than any other stable government fiat money.
Putting a stable-value token on Steem brings even more benefit. The post I linked, (Steemit's Evil Plan for Cryptocurrency World Domination), explains some of it. The basic ideas are:
Steem's linking and blogging ability is an onboarding platform for every day internet users (non-nerds, these days). These are people who might not otherwise elect to use a cryptocurrency network because they don't understand it, they don't like the idea of a speculative token with volatile value, the software is clunky, or they don't want to invest their own money into buying some. People can make posts and comments on Steem and earn SBD as well as stake in the network, all through their web browser.
Steem Dollars are immediately liquid and as we know, Steem users can cash it out for bitcoin and then to their local currencies. But looking at the broader picture, a stable-value token can also be used to purchase what people want or need directly. With people earning SBD, it's a much more direct route to simply pay for things with SBD. People using Steem can also see the opportunity to sell things for SBD.
Furthermore, Steem is one of the fastest networks out there. Paying with SBD can be as fast if not faster than paying with a credit card. With a three second block interval, transactions take an average time of 1.5 seconds to be included into the next block.
So with a stable-value token, without the speculative anxiety I mentioned earlier, running on one of the fastest and most easy to use networks ever made, you can see there is fertile ground to build a market around the Steem Dollar. But if nothing is done to actually remove the possibility of positive value speculation, it is a speculative token and many of the advantages of a stable-value token are lost. We have seen this play out as the market value of SBD climbed above $1 for too long.
Why does this matter even if you're only here for post rewards? I'll let Wikipedia do the explaining for network effect. If a real economy builds around Steem, the demand for the STEEM token will most certainly increase, having a positive effect on its market price. The way Steem is built, the higher STEEM's market price is, the more post rewards are paid out. This means more SBD for you to spend. And wouldn't it be amazing if it could be spent anywhere?
This is by far the best explanation I have ever read. I have been trying to explain why the SBD needs to be pegged at $1 to so many people but the level of detail you go into with it is awesome. I agree, if the SBD is pegged at 1 USD, it will open up so many different opportunities for the Steem block chain all over the world and for people in countries that really need it.
Wow!! I have been opposing this idea for long but with this amazingly detailed explanation, I am capitulated! This is very amazing. I can imagine chain positive effect this would have on steem ecosystem when the crowd start seeing our sbd as the internet equivalent of US dollar. I guess the adoption would skyrocket, indirectly pushing our steem to the moon! What are we still waiting for!? They should just peg this! Damn!
Thanks for taking your time to explain this to me. Gonna have to pass this massage around.
Regards.
@eurogee of @euronation and @steemstem communities
Very well said. I hope @ned and team can be convinced of the value of SBD.
I feel it's the same responsibility for backups too. What happened during that crisis was a testament to that. While some top 20 witnesses were up and running, some were forced to replay, and the backups who updated, without a forced replay, where helping restore network participation, i.e. they became top 20 temporarily. In the end, big or small, we're all valuable for the network.
Well said drakos....
This is my ultimate dream, to be able to spend my Steem Dollars as actual money in brick and mortar places and online as well. By now, I should be able to purchase things with it at almost every online store that accepts crypto - but SBD is not there yet :/ I don't get it - it's fast and cheap to make transactions, why are people still so far behind? I could care less about the other crypto out there - steem blockchain already does what they all aspire to do yet people are blind to the fact or something...I can spend it in Korea as UpBit exchange has a direct KRW/SBD pair which is awesome. I've already convinced a few of the shop owners here to start accepting it as payment and they're absolutely in love with it! But that's not enough...
There is so much awesomeness in this post. Witnesses like you definitely deserve to be in the top 20. Hopefully your date understood that you basically have people from all over the globe relying on you and your technical skills. I am sure once you explain it like that, your date will think you are pretty much think you are a superhero and want to marry you.
Thank you for all of the support for my photo contests and all of the other projects across the platform that you support. Without the support of people like you, it wouldn't be possible to reward people for the awesome stuff that they are doing to help keep this platform alive.
I'd love to vote for you as a witness. Alas, I have no idea what that means or how to do it. Can you direct me to Witnessing for Dummies please? I'm behind the times in all this newfangled lingo. 😃😁😀
Thank you!
I once wrote a witness guide when there were not any better ones, but it was a while ago and it's pretty outdated, so here's a pretty good one from @timcliff: https://steemit.com/witness-category/@timcliff/witness-voting-guide
Thanks! I'll go check that out.
Much as I might want to care short-term if the price of SBD’s is X or Y, I usually just dump them on the internal market in exchange for Steem to power up.
But I do see the long-term potential for a stable SBD value. I’d certainly have more faith in SBD’s than in scams like Tether or Ripple.
The discussion about implementing the "reverse conversion" for SBD was supposed to be re-started when SBD will be close to its peg, wasn't it ?
Now we are almost there.
SBD actually reached around $1 for a bit. As of a while ago when SBD was >$3, most witnesses who responded to an informal poll supported doing something to fix the peg, at the very least when it returned to $1.
Cheers for the update. The devs and witnesses did a good job of getting things running again. At least this was caught before Steem went mainstream.
I really want to see SBD get used for buying and selling. I used it previously when it was more stable, but there were not many places to spend it.
Witnesses did a good job this time around considering the situation which is nice to see. Good job to all involved.
Is this picture from your date?
Hahaha you can read into it however you like.
Hats off to Steem Dev Team and all the witnesses, especially those in the top 20. You guys truly are amazing - we together help build a better, stronger steem blockchain. PS: voted you for witness!
Thank you for your vote!