We are back down to the $1.00 peg, but are we?
We are at $1.00 SBD right now, but my guess we are not as much pegged as SBD fell faster and hit $1.00.
I don't think we are at all pegged, and we will still see it go up & down as Steem goes up & down. The current depressing price is a result of many factors, the primary one being the entire market is a bloodbath. BTC has fallen below $6,000 support again, Ethereum is below $500 again, and LTC isn't even near $100.
Last 7 day rollercoaster ride
But is it really pegged?
When Steem recovers (yes please!) I believe SBD will climb with it until something actually changes. This price will likely result in the return of the SBD conversion on the wallet page, do you remember that feature?
Is a $1.00 peg a good thing?
This is a debate that likely will never end. As time goes on, I see less of a point of even having SBD in the first place. The original idea was that SBD would be pegged at $1 so you can use it as a trusted commerce token; sell a $10 widget, charge 10 SBD no matter the current price of Steem.
As we have seen with Tether and SBD, you can't always trust a pegged asset, and once it loses its peg it can spiral out of control. While it is really nice to be able to sell a $10 widget for a flat 10 SBD, as you can see with @steemmonsters, that's not really a requirement.
Commerce with a pegged asset
While using current market price to charge for a widget technical works, it requires customers to always use a third party shopping cart to purchase your widgets. They cannot purchase it ad-hoc by just sending 10 SBD to you, knowing the price is $10. A shopping cart or some third party website will always be required to make the conversion from SBD to your target price. This is what is called a barrier to entry and will create friction and reduce follow through. How much? Perhaps not much, perhaps a lot. I believe if we had a real $1.00 peg, you would see more @steemmonster sales as users can just do a transfer for 2 SBD per pack they want to purchase. Once you add a third-party site, shopping cart, SteemConnect integration there is a fall off.
Do we really need a pegged asset?
While I am one for fixing the peg, I'm starting to think SBD really doesn't have much of a place on Steem. It just adds more complication to a system that is already complicated, it isn't ever going to be reliably pegged unless witnesses get more tools to do so, post rewards could easily be distributed via Steem and Steem Power with very little change. I would prefer to have a pegged asset, I think there is a value to it, but if we cannot sustain it, it just makes things worse.
But a raised SBD price helps us acquire more users...
When SBD is worth more than $1.00 it acts as an amplifier for post rewards, making them much larger than normal. This is great for getting new users on the platform and the side of effect of encouraging spam.
We have already shown we are not very good at keeping new users with a user retention rate of 5-8% at best. There are a lot of things we need to do to acquire more users, and even more to keep them, but selling new users an elevated peg is a lie, a lie we cannot sustain forever.
Anyway, we are near or around the $1.00 peg. Party on or get a box of tissues, depending on the camp you are in. We are in for a wild ride, try not to fall off.
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When it was at $10/SBD, It was like trying to take away the crack pipe from an addict...not a good idea.
now that's it close to $1, I'm in for a 2-way peg or getting rid of it entirely.
I think that makes sense. But I hate getting rid of it, however if were cannot fix it then I believe getting rid of it is better.
It will help however to focus on one goal vs two, so I think everyone should advocate for giving witnesses tools to ensure the peg or allowing it to buy at some premium.
Look, the creation of an intermediate token for the absorption of emissions (payments to authors) is very beneficial for the algorithm. Because the speculators take it for accumulation and the subsequent pumps. The number of SBDs is very small compared to the main token, and this makes it very attractive for speculation. Thus. the issue is taken away from you free of charge, + it is nice sometimes to see SBD at 5-10 dollars for PR.
If you remove SBD, you will have to buy emission from author payments, as speculators are less interested in this because of the huge amount of Steem coins. It is much harder to raise it, which means that we will receive constant pressure on the price of the token, which is not very popular already.
I would beg that advertising a token to be worth $1 and then it doesn't perform as advertised is bad PR telling the world that our tech doesn't work as intended. It's nice for authors, but for anyone out there looking who doesn't know what SBDs are, it's bad. The new people don't understand that nuance and then are left puzzled.
Simply advertise SBD as a token, which can be guaranteed to be exchanged for 1 dollar in Steemit, and on the external exchange it can cost 5, 10, 18 dollars))) This is much better than just a 1 dollar, as for investors (which enter SP only for selling upvotes) , and for authors. Simply, higher ROI.
Can't agree. New people here do not need to anyone with their texts, they only needed for their money to buy tokens. And if people invest money, they will sort out all the nuances, and certainly will be happy with the high rate of SBD.
In any case, removing SBD will significantly increase the load on the main token, and it will fall more quickly, and grow more slowly. It is necessary to understand that the economy of Steemit is completely leaky, and only speculators on the stock exchange can fix its holes. SBD gorgeous pump and dump token. It is really bought up by speculators and sterilizes emission. For me, it's hard to come up with a more idiotic solution than to kill SBD.
But I'm not really worried about Steemit anymore, then what happens to the SBD will only accelerate its departure from the top 100.
agreed on the PR point and I work in PR since over 18 years
Exactly. Even seasoned authors don't get it, they just say thank you.
Exactly. Even
Seasoned authors don't get it,
They just say thank you.
- jefpatat
I'm a bot. I detect haiku.
100% agree with you on that comment.
I kind of like it here. Account growth atm is sped up 4-5 times. In the end that should be the goal.
Steem will hit, 5-10 USD in 6-12 months so its kind of a good thing prices are low if you arent looking to cash out. My last upload will make me more SP then my last 5 uploads combined when the prices were double this.
Its kind of weird that everything is worth less but you get more of what you need for growth.
How much high did it go...Can you tell me how this steempower works.
Can't agree more, two way peg is the answer.
then we should not sell it anyway.
I'm in favor of a 2-way peg.
@tabgerinetravels what is 2 way peg
Right now, the blockchain allows you to convert each SBD for $1.00 worth of Steem. This creates arbitrage opportunities when the price of SBD falls below $1.00, and this profit motive drives the price of SBD back up to $1.00. However, there has never been a similar downward pressure on the price when SBD is trading above $1.00. This is a one-way peg.
If we changed the blockchain code to allow people to convert a dollar's worth of Steem into 1 SBD, that would also create an arbitrage opportunity. When the price of SBD exceeded $1.00, people would convert their Steem into SBD and sell the SBD. This would create downward pressure on the price. When you add this element, it turns into a 2-way peg, which should do a much better job of keeping the SBD price around $1.00.
#cryptoctopus IT WAS REALLY $10/SBD??? I AM REALLY SHOCKED. I would pray that it comes to that again.
It went as high as $12... happy days.
Cg
I remember the days makeup tutorial videos and travel vlogs would make 30k a post.
SBD is not pegged anymore to USD, pegging it was the ability to exchange it automatically to $1 worth of steem, and i don't see that option available anymore.
It was users misconception that led SBD price to go up, while it shouldn't, why would you pay for something i offer you a price more than what i am telling you it worth?
i am with the pegged price, i believe it's very important for users who does not like volatility, and it's good for them to know their savings or earnings are somehow safe
That would be very difficult. The price feed peg turned out to be useless.
it worked out for 2 years and it's a proven concept, i disagree with you and it's definitely not useless.
My take on SBD is that it distorts how much liquid rewards are paid out on each post rather than amplifying post rewards.
I think this is detrimental at a fundamental level as it just encourages people to cash out their stake rather than locking it up a portion of earnings for some period of time and actually having stake in the platform to incentivise behaviour.
Back to the question do we need SBD or does it just complicate the Steem Ecosystem?
If we can first agree it is a good idea to have a stable asset, then we can discuss how to make it work, but without first agreeing on this premise we just keep going around in circles.
For the record I think a stable asset is a great idea if we ever hope to attract large numbers of people to the platform.
delete
Great point, so many people here get hooked on making money and forget this.
The promise of Steem in the beginning was an alternative to the advertising fueled model for social media (as well as a censorship resistant medium). But if people wish to cash out, the fiat money has to come from somewhere and without some form of commerce or utility that only leaves speculation.
For that reason I think it's vital we have an feature to support commerce on the platform. The single most important feature I think is a "stable" asset such as SBD.
Where we can achieve a stable asset or not is an entirely different question.
yet SBD is currently not stable...
Nothing in this existence is "stable" lol
@metama Do you really think SBD fall down even more?
It's definitely possible. If btc drops more, steem most likely will and and will follow
Posted using Partiko Android
@metama Thanks for your best opinion
Nice assessment.
Re: "We have already shown we are not very good at keeping new users with a user retention rate of 5-8% at best. "
If by "user retention" we mean account continued activity, there are a lot of factors to contemplate,
one of them is, of course, what kind of users are being attracted to steemit and what are their intentions towards the platform.
In an environment where a large fraction of incoming users are here to abuse the platform a low "user retention rate" is appropriate, it means the abusers are being worn down and driven out by one mean or another.
I mean, those abusing users that cleaners (including yourself of course) hunt, and then end up leaving the platform are a part of the "user retention rate".
In short, in my opinion the onboarding process should focus on onboarding actual quality content producers instead of bodies with a pulse.
Regards,
Walden
@walden do you thinh STM willgo down more?
When you look at it as there can only be two variables, "quality content producers" and "abusers" you see where the retention problem lays, Steemit doesn't offer, want or promote anything in between, I don't know what the "inbetween-er" percentage is but my guess it's the vast majority on the internet supporting the popularity and growth of many, many sites.
Oh, I dont look at it in a black and white fashion, I see the whole spectrum of greys,
and when I say abusers, I mean hardcore abusers, serial plagiarists, spammers, ID theft, etc
PS. in your example there is one binary/boolean variable, not two.
except it's not this at all. The 5-8% of users, are the people who abuse... or are just the top1% that we see on the front page, Every. Single. Day. Five. Times. A. Day.
I would says only 1% of those indicated retained users are abusers, or just use bid bots.
you have no clue what you are talking about.
such an insightful comment. Way to upvote yourself. Proves my point.
SBD is pegged in a way so that it doesn't go below 1 dollar. But the upper limit is not pegged. The price feed is generally set to 1$. That is not really a good way to peg a currency.
It went a to 0.97 USD but its reverted back.
Nice post! Steem and all cryptos to fall further before any real gains, so be patient. Some big time forces at play here and they're having fun. If you think crypto will survive in the long run then take advantage of these planned crashes and add to the bags. Of course that's if you can handle seeing more dips before rewards. :)
So sad
It will absolutely go back up when the markets go back up! It's been tracking with Steem through the whole drop. Give or take a few cents here or there.
Smooth will now have to power down the burnpost sell steem and purchase SBD to burn. haha.
When human's try to manipulate the markets it almost never goes well.
Well marky, obviously all of us Steem/SBD holders want to see the price of SBD go up, who doesnt like money? But the truth is that the best thing that can happen to SBD is that it gets pegged 1-1 to usd. Great example using steemmonsters, but let me put a better one :D
Lets say i sell tshirts, i want to sell a shirt to marky that says "MarkyMark Fan Club" at 10Bucks flat. You send me 10 SBD (unpegged 1-1) and it takes you 7 days to recieve the shirt cuz im 10000 miles away, during those 7 days SBD moves to 2 bucks a pop. You just paid 20 bucks for a 10 dolar shirt.
#PegSBDtoUSD
-Cheers
The exception to that is when:
Indeed when buying something like steemmonsters, I have the choice of either:
a. sending some euros to Bitstamp or Kraken
b. buying BTC there
c. sending the BTC to Binance or Bittrex
d. exchange BTC to STEEM there
e. send STEEM to steemit
f. use STEEM directly to buy monsters through steemconnect
OR
a. SBD is supposed to be pegged so even if exceptionally it can go for a time far above, it won't
normally "moon" to make my cry for having spent it
b. I'm continuously earning more SBD thus over a long period the SBD spent on monsters will be a
small proportion of my holdings
I believe the SBD adds indeed complexity but if done right it adds stability and value to the platform. Rather than making them disappear, it would be better if witnesses got more tools to try and maintain the peg
Imposible to peg something like SBD to a FIAT value unless there is some smart contract available with collateral, so SBD would in turn need to be created as a smart contract, a great example is the pegged USD asset on the Bitshares exchange (Bit.usd)
Which uses a smart contract and holds BTS as collateral to maintan the price with the slightest of variations being it 1usd-1.05/0.95 bit.usd spread at most.
I agree perfect pegs are almost impossible to achieve - but one can add efficient mechanism to try to approach a peg as well as possible. I reckon the current mechanism for pegging SBD while far from perfect is a good start. It pegs pretty well on the downside. Add some automatic mechanism for SBD emmission when the price increases (to peg on the upside) and see how it goes.
It will already increase the velocity of SBD because people will hoard less (in the hope that it shoots for $10 again) and will spend it more freely.
That is the objective - to have SBD as a currency circulating inside the steem blockchain economy, with a value that people can relate to (~$1). And with "jobs" allowing people to earn SBD and "goods" such as steemmonsters allowing people to spend the earned SBD
I agree, just showing the most efficient way to peg an asset. :D
Good point
all the crypto can again up and hit the market???@themarkymark
@themarkymark what will be the bottom of steem price in these bear market???
I answer that in great detail here
The answer is 42.
The answer is 50
AROUND 40
Hello mark,
Can you tell me how much time take to increase our steem market.
Who knows.
I hope it's go moon as soon as...Thank you @mark.
▀
nice, the topic is quite new for me. however I am really liking this and found it informative. i would be waiting for some more new posts of you.
Hello, 👍👍👍
you have a beautiful block. And nerpsya all with the course will be good.
It's a crypto currency))) 🔥 🔥 🔥
A beautiful what now?
https://steemit.com/birthday/@technicalguruje/birthday-of-a-star-lionel-messi
Wow SBD back at $1? Massive fall since the bull market
All crypto specifically sbd and steem are very much following the price of Btc as all coins generally depending the price of btc as all coins are ruled by btc..
pegged asset is not a good idea as it is no guerranted
The peg is jus half a peg, what is kind of useless. Now would be the chance to introduce a peg in the opposite direction and make SBD a truly suitable services coin. I'dd propose allowing for a bit of bandwidth between upward and downward pegging and as we already have the $1 downward pegging, adding a $ √2 upward peg.
An other thought is, with the current looming trade wars, is the USD really the most logical fiat currency to peg against. It might be a good idea to look at a different currency, euro or yuan maybe, or better yet, peg it to silver. The most essential thing though, make the peg a double one with a realistic bandwidth between the upward and the downward pegging.
If we ever want to regain the promise of a services based economy, doubly pegged SBD is truly the only way.
Just made this blog on the subject, arguing for a quadrupal peg. Think it's relevant to this discussion.
This has been devastating to my family. We are in a tight spot right now, and when sbd was higher, I was using my earnings to buy things we needed for the household. Now I'll probably have to go to the local pantry soon.
I don't care what the arguments are. I think keeping it pegged at a dollar has a demoralizing effect for many on this platform, and it also takes away some of the incentive to even be here.
Snowpea you should go to the pantry at every available option to you, a lot of those products are self stable, in your current position it is always going to be a huge plus to be over stocked then under stocked.
Yes, it makes sense to do that. Thank you @sunlit7! :)
Many years back I had a friend who had four kids and I use to go with her to the pantries and these, what I called "make shift" churches which were some building that wasn't a church converted into a neighborhood church inside, "neighborhood outreach ministries" that if you sat through a sermon they would give you a box of food, that way she was getting a double load of whatever they were giving away. We had some absolutely wonderful times together doing that, at times it was completely hilarious. Like one time we sat next to this guy and she bumps me on the shoulder and points her finger....the guy had a cockroach crawling around in his hair. Another time I dared her to go up front where the minister would pray and then forcefully extend his hand out towards whoever he was praying for and they'd fall backwards while someone caught them that was standing behind him. I am sure you've seen similar scenes play out in movies. Anyway we were always curious if people actually passed out or it was fake. I'll be damn if she didn't get up there and he did his thing and the next thing I know she was on the floor passed out. lol. I told her she must have been full of demons, something like that would never happen to me....lol, lol.
It will go back absolutely when the market goes back! It has been tracking with Steem through the whole drop. Give or take some cents here or there.The horrendous situation in the current market has remained in the same position for the last 23 months. We do not understand when the price of steemit in the market will increase.
I think it only touched $1 on one of the exchanges.
Since its very low right now, the chances of it coming up is higher as far as there is support. Fear not. SBD shall rise again
I agree with you. Because SBD is currently not stable
I'm a peg, buy me...
You make a good point about SBD being confusing and user retention being low. Considering that those people were actually smart and patient enough to wait the three days and figure out the complicated password thing we need to try to make them stay. But is it the SBD that sends them running or all the crypto talk and angry anarchists dominating all the content?
HEY themarkymark what do you think the price will increase of ltc and eth and btc
one day it will for sure...till then buy buy buy!
can u upvote me
@themarkymark i think Steem and SBD Price go up next few days and if some one need to buy this time to point for buying steem power and sbd for invest. what your suggestion for steem buying???
What you suggest about buying steem please tell me@themarkymark Do you really think that steem and sbd go up so it's the right time to buy steem if it's not going down?
I answer that in great detail here
We should see the current state of the market as a buying opportunity. If gas prices goes down to $2.00 a gallon we buy more. We don't complain about the low price of gas, we instead buy more because we know the utility.
U need more active users here, than real user activity needs to be rewarded on steemit. Right now I will get punished for real user activity because I will get more rewarded for delegating or paying auto-bots. This need to be fixed. I actually have an idea...
lets see what happen
@themarkymark i'm happy to see your post related to SBD coin, and definatly i leave here a comment to appreciate your work and upvote you, and bro i will be double happy if you will follow me and upvote my blog..
PRETTY BOY, I WANT TO KNOW SOMETHING ABOUT ALL THIS STUFF YOU WRITE!
Hello #themarkymark i need a steem power this time best? but to steempower
I think you are right and i am agree with you
@themarkymark the future is blockchain and currency were going on digital, crypto also may be ++++++ only when the world knows the power of those things and supported all worldwide we no need to calculation about price it will show itself
working hard
Hello Sir I am new on the steemit so how can i improve myself please give me some advise please...@themarkymark
@themarkymark What do you think, will SBD reach its ATH again ?
Steem is great coin!
@themakrymark its very beautiful and useful blog, thanks for sharing such kind of information. really forward to see you in future.
Don't worry! Steem dollar is fluctuating every day so it is usual there is no surprising. Because every Cryptocurrency at their initial starting phase they behave like this. But in future they will equal or more value than bitcoin. Thanks to STEEMIT.
@themarkymark... Sit back and relax will soon touch 20$... future is crypto
hii @themarkymark, how can you see this bearish market for SBD coin future.. and when we can see again better time for Crypto Investors
If the steem and steem $ price reach to 0.4usd or less then the steemit worke is worth full or Not please reply
@themarkymark
If steem reaches 0.40 USD, I will buy a shit ton.
hopefully you will replyBut my question is that than steemit blog post us worth full fo new steemit user unlike you a big man @themarkymark
I do not understand your question.
Bro my Question is that i am new on Steemit if the value of steem gose down than the new user how eacn 0.01$ on their post if they got 10 upvote then that value is so low for new user.
what they do than. Work on Steemit or not ?
I hope now you understand.
▀
I am proudly going nowhere. If anything, I'd love to increase my involvement here. Love the Steemit community regardless of the price of STEEM/SBD
I think the SBD should just be gotten rid of once and for all. I don't think a stable peg is possible. My guess is this window of opportunity where the SBD is actually worth $1 won't last long and we'll be back to the same old broken peg like before.
The 100% SP payout option doesn't look so bad now.
I expect it's just passing $1 on the way down for now. Everything is in freefall
@themarkymark your analysis reminded to ask you one question. Can you tell me what is your personal long term view of SBD as i am preparing to hold it for next few months and going to average if it show some good signs. what do you tell ?
Holding SBD is a risk as anything over $1.00 is a gift when it was pegged it was usually around $0.96.
Hello Sir I am new on the steemit so how can i improve myself please give me some advise please...
'can you help me by upvote'
Hi, one thing you haven't mentioned is the plummeting "SBD print rate". now at 35%. I suspect, as you say, that the SBD=$1 level is a function of the overall markets, hence I wonder why that print rate is being dropped so much when the external market is doing the "necessary" work anyway? It means if that lever is needed, it has very little room left to go lower.
Indeed, if SBD drops well below $1 and the print rate is increased back again, will we see the desired effect? We wait and see.
I'm starting to think SBD really doesn't have much of a place on Steem. It just adds more complication to a system that is already complicatedExcactly, why can't we just get rid of it? I am not into steem economics but I don't see value in SBD either.
Remember, everything that goes down eventually have to rise up... don't give up, don't abandon the platform..
Actually, no that is not true. There is no guarantee anything will go back up again. Anyone who believes this will be burned over and over.
I agree that there is no real point to having SBD if it isn't truely pegged to the US dollar or Euro. If the value stayed at $1 whether or not the price of steem fluctuates, it would be far easier to be used a base for a market on the steem blockchain.
On a separate note, I love Firefly and my doggy is named Malcolm after the beloved Captain of Serenity. He is our little browncoat! :)
BUT Steemit is good website in video