- Any market could crash 90% tomorrow. That doesn't mean you should peg all those markets to $1 USD

- You don't want users around that are here for "the money"? Well, anyone is free to flag those users to decline their payouts.

- One shold make better financial decisions? Yes, of course, and that could be said about many many beginner traders. But this is still not an argument why one should destroy SBD and force it to $1, ruining the economy for everyone. Also, there is literally nothing that says SBD can't keep this price for years and go even higher. That being said, those financial decisions will in such a case be pretty good.

All these are non-arguments for destroying 700% of something's value. Go make your own cryptocurrency which is pegged to the US Dollar and let the free market work in peace.

For now I will vote on witnesses that are agains the forced peg at this moment. I say: first look if the price comes down itself from supply-increase with all the printed dollars. If not later, when more sbd's are printed and much more people joined steemit (yes I truly believe this brings alot of people to the platform atm) you can peg it to 1$ for the reasons you described that you think are an advantage of having a pegged sbd. however we'll need a larger supply before people use sbd to safely store their value in the pegged sbd. Then again thether hasnt that big of a marketcap right? I doubt that we would have more benefit from people storing in sbd (pegged) then having these prices atm of SBD. we also didnt capture the market in 2 years but finally this price does alot of good things to the platform. I wouldnt change it quickly. I'll also make a post about it soon to defend my points and tell people to vote to the witnesses they want to follow :). Thanks for putting your toughts in a post it is good to hear out everyone :) (upvoted for visibility)

A very long and informative read... Thanks to all the commenters and poster, i really learned alot from you all.

Hello greer184 :) Hope you doing well :) You have Highlighted a very strong topic. Stability of SBD is quite unsure. We never no when the price may go high or low. What we need to do is to directly payout it the moment we transfer it to any exchange. What I do is that I directly transfer it to bittrex and sell it between 7 to 9 Dollars . Because I am worried if it may go back to 3 Dollars which use to be. HODL is a good choice but not with this coin. 

This is my personal review. I may be wrong or correct.

I personally am in a similar mindset to @aggroed and @clayop, at the moment. I cannot in good conscience disagree with anything you have said here, and if anything you have turned me slightly towards the direction of implementing the reverse conversion route. However, I still think that we need to take at least a little time and think this through very, very carefully. I've been on this platform since mid 2016 and to be honest this is the most nervous I have felt about any change to this point. I think that we need caution, discussion, and to keep a very close eye on this at the moment. That being said, discussion should not take too long. I don't think it's unreasonable to talk this out for a week or two before we go ahead with anything. Thank you for your very well thought out post.

Yes if we earn on steemit tgen we can payout after 7 days. And if you eran more steem and the price high but you can. And after seven days they will but that time price will be low.

I agree with you 100%, will resteem and follow you now.

When I found about about the [true nature of SBDs](https://steemit.com/steemit/@doodlebear/steem-power-steem-dollar-and-more-explained-in-simple-terms) I was somewhere between surprised and shocked: It's an electronic fiat currency and it's in the hand of computer programmers who have only little knowledge about financial/economic aspects of that and zero experience in handling that. It led me to write [this post outlining the risks that come with running this kind of scam](https://steemit.com/steemdollar/@doodlebear/if-you-want-to-push-steem-dollar-down-to-parity-with-the-us-dollar-you-need-helicopter-sbds) (because that is what it is if you are honest.)

In the comment section I had a somewhat meaningful discussion with @timcliff, in which my impression got reaffirmed that besides good intentions (and some with Dollar signs) they have no clue about the economic end of Steemit or Steem let alone SBD and its difference to Steem.

This is very concerning because while it might go well for now in the hype-phase that cryptos are in, at one point there will be a reality shock followed by the first real bottleneck, in which cryptos without purpose are eliminated. SBDs are definitively among them because Steem has all properties that SBD has, but it is not fiat. That means, SBD will lose when the verdict by the market comes (Right now there is no verdict or any reality in the market, since nobody knows the difference between Steem and SBD and still SKoreans(?) pushed it higher again.)

One huge problem for the current construction is that markets tend to (ab)use loopholes/design errors as they exist with the two intertwined Steemit currencies. A major weakness is as I believe the idea of holding the SBD peg from below 1 US-$. Lifting it up again costs Steem and if you think it to the end, the peg could ultimately kill of Steemit because theoretically, it would have to eat up all bandwidth to thwart attacks on the peg (yeah, I know, theoretically, but after all possible considering the construction). 

As an investor I would also wonder if there is a good product (=Steem) and a bad one (=SBD) or if not both are bad ones because they come from the same cradle. (In an extended thought, that would also apply for Bitshares and EOS.) 

These aspects are toxic and they could end Steemit if there is a downtrend coming from the wrong side in the wrong way. 

Personally, I believe it is much too risky to keep SBD alive (or allow it to freely flow outside of the Steem environment) and that's why it should be either abolished or reformed that it doesn't harm anymore.

Given the current irrationality of the market, it might not work just printing out SBD to get the price to drop. After all that should have already happened.

It seems preferable to me at the moment to slowly take SBD out of the circulation outside of the Steemit currency market and make sure it gets unlisted on coinmarketcup and other places. An article in a big crypto magazine about the true idiotic and counter-crypto-intuitive nature of SBD might help as well to push the price down again.

As soon as that is done, a controlled peg can be installed, so that services using SBD plus the blockchain as payment system can be developed. But first: Get rid of SBDs in their current form.

Sbd is capturing some of the gains that should accrue to steem. If we increased supply of Sbd and reduced supply of Sbd steem would go up while Sbd down. The best way to do this is allow post to pay out 100 pct Sbd. Then the supply will double and steem supply will grow slower leading to steem up and Sbd down. This seems like an obvious move. It takes so long to change things here though.

I agree with all "arguments" about why we should keep SBD as worthless, just the same as you. 

As I've mentioned in my SBD peg discussion addiction rounds, to me it's obvious that the peg will eventually be reached when the supply is sufficiently large. The question that remains to me, is *why do we need it right this moment?*

I've heard that perhaps we are competing with other stable tokens, but I just don't buy it yet. And it's not like having the peg will magically make people flood the gates to  STEEM. A peg wouldn't necessarily be trusted unless it can hold steady, which is a long term observation anyway. I am willing to admit that I do not necessarily have the big picture.

But anyway, in terms of my "obvious" comment. My vision is:
1. STEEM price sustains high price
1. SBD gets more printing
1. SBD price goes down below 1 USD (eventually, maybe very eventually)
1. More monetary tools to prop it back to 1 USD (not the least of which is interest rates and conversions)

I think of this steem ecosystem as "too young for the peg to work", much like the rest of the cryptosphere. (I suppose tether is "provably working", though they could certainly use more transparency for their actions. bitUSD I'm not sure about, it also seems not to have too large of volume).

One last point of thought-- recently I did a [two-way conversion pump and dump thought exercise](https://steemit.com/sbd/@lukestokes/should-sbd-be-a-pegged-asset-if-so-when-should-we-peg-it#@eonwarped/re-twodollars-re-eonwarped-re-twodollars-re-lukestokes-should-sbd-be-a-pegged-asset-if-so-when-should-we-peg-it-20180128t145129467z) that I would like to see refuted.

Buyers have driven the price up. Users are driving the price up. Deciding to peg this to the dollar now would set a precedent that a crypto can be revalued to what the creators want and punish the buyers and users of that currency by decreasing their wallet value. 

If SBD was to be decreased to $1, then there is no point in even having the asset at all. Power up post 100% and you would have the same argument that Steem being worth so much is about greed. SBD is worth so much because of economics. Supply and demand. Developers would have to increase the amount of available SBD again and again and again to keep the value stable around $1. This is the same issue with tether. I dont think there is a problem with SBD being a speculative asset. 

Being speculative allows for it to rise and fall and grow as a currency. The price will stabilize eventually when the circulating supply decreases because everybody has the asset. To keep SBD around a dollar you would need to contract and expand the supply with every purchase of SBD or sale of SBD. To me, this is market manipulation. That is basically what governments do, just print more money. Crypto is supposed to be different.

I am ANTI-PeggedSBD

This is an incredible well thought through set of arguments, so props to you for that. I don't necessarily think any of your arguments are particularly right or wrong. As you said, a lot of this future thinking is just speculation until it occurs. A couple points:

1. I agree that an unstable currency like SBD makes the system way more complicated, and thus not user-friendly. It's a huge pain to explain to my friends just how much my post rewards are worth, and afterwards, I can see that they all kinda think this is funny money. 

2. I disagree with downplaying the importance of the financial benefits of participating in the Steem Blockchain by contributing content. While certainly, the vast majority of users will never make a living off of Steem Rewards, there will need to be a subset of creators who have said opportunity. Recruiting and developing that level of creator within this ecosystem drives user growth, and will generate more value overall. To that end, the current valuation of SBD makes for a much more intriguing and potentially viable full-time job prospect. Yes, instability in the system might worry some, but pegging it to $1 USD, lowers the ceiling on potential payouts for individual posts. 

While one could argue that a text based post, or an image shouldn't be worth thousands of dollars anyway, that is not the case with regard to the creation of video content. The liquidity of SBD is necessary for creators to maintain their finances, vs SP which has a 13 week payout, and is only rewarded in relation of the value of the post, not linearly on a 1:1 payout. To that end, the opportunity to earn significant liquid currency for a creator who only posts 1/week is critical. Otherwise we are creating a system that incentivizes well-meaning creators to post more often, even if creatively that isn't what they want to do, in order to make a living. 

All speculation, sure, but by pegging the SBD to $1 USD, it does put a lower ceiling on earnings for individual posts, which would certainly create new and different problems (maybe better problems to deal with, but who knows)

hey wow.. how you achieved that.. two upvotes worths 79$.. 

Just followed you.. 
its been a long time with steemit.. but still wondering how others increases their reputation..

if you have any idea share with us..

seems like you are successful on steemit.

if you post something that is relevent to steem would be greatful for us...

thank you..

@aggroed,I am happy to see you, every day can collect a lot of money with a steemet account. Of course there are many obstacles before you get results like this, please info and knowledge that you can share for me new to steemet

Hello @greer184; first, allow me to say: thanks for this well-explained overview of the issue at hand. You've touched on many things I think are important. I agree with you on many fronts. 

Firstly, where we agree: SBD should and *must* return to $1 in order to serve any rational purpose on this blockchain. In addition, there are some *real issues* with the irrational SBD that are hurting our community *here today*.

But introducing a reverse conversion is **not the answer**, at least not the way it's currently being proposed. The current proposal does not do enough to protect the community against bad actors with deep pockets.

What started off as a comment I was writing here ended up as my own post [on why the witnesses have the right idea but the wrong execution](https://steemit.com/@lemony-cricket/the-dangerous-reverse-conversion-proposal-and-how-to-really-fix-the-peg).

**TL;DR**: We need a rebalancing of reward payouts first, to curb the stakeless actor problem. When that's taken care of, we can talk about *gradually* bringing the SBD price to dollar parity in a controlled manner.

i think you are right there..sbd is dependent on steem which is still unstable and i think the biggest problem is that you cannot payout before 7 days so if the price goes higher and you want to payout or sell it which seems not possible as in other crypto currencies..i think this really slow down the steem value which is still not very stable and people will not be much intrested to invest as it process so slow.

Hey @greer184!
I am glad I stumbled over your post. It's good to read well-presented thoughts from one who seems to actually knows of what he speaks about. 🤗 
I also read quite some of the comments here and saw, that we have a suprisingly great variety of different views on this topic.
Many of them are contradictory AND understandable. Somehow curious.^^
Nonetheless i want to emphasize only one of the points, which you also brought up and which does have more weight than all others:

# A stable currency value allows sustainble Crypto-establishment<hr>
Cryptos as currencies primarily used for unregulated trading, do not provide any real lasting benefits for society. It is just a playground for those who want quick money. As long as there is no 'real value' added, there always will be the easy opportunity for the total crash. And unwanted FUD is related to the 'bubble burst' event.

To establish and indeed **use** a cryptocurrency in a long lasting way, a reliable financial value is an inevitable prerequisite. I'm totally with you on this one.

Again: Thx, for the nice post full of insight!
Best,
mountain.phil28

This community is strong and growing BECAUSE of the financial rewards, not despite them. Financial benefits encourage people to fight to improve, to compete for readers by becoming better.
There is an element of strategic gaming involved which again, I think many people enjoy.
Accept it for what it is, a community exchange of ideas and place of learning with added reward. The only way to grow and keep the quality improving is to leave things the way they are. ( in ref. to pegging SBD)
The financial rewards also help to clean the group of spammers and chancers also, this happens to those that come here JUST to earn, if they dont quickly make money with their one word comments and copied posts, they just as quickly stop. This is a benefit of course.
Greed you say ? In some cases, perhaps but in the majority no. Many simply want to work harder and be rewarded accordingly, many others want to create content to earn to give away, others simply want to earn to help lift themselves out of a difficult life. This community allows these opportunities. This is NOT greed and its a rather presumptuous and not very nice thing to say.
Leave the Steem and SBD as they are, it's a dynamic most people enjoy.

I think any manipulation of the SBD value (directly or indirectly) goes against the founding values of Crypt-currency. If we begin to manipulate these free market cryptos we are essentially returning to the same issues that existed in the FIAT markets.

Hello @greer184

I would like to add an economic view on the discussion, based on fiat currency economics. I think it is a needed perspective, since we are talking about how Steem economics should works. Could you take a look?
https://steemit.com/witness-category/@phgnomo/sbd-usd-peg-taking-exemples-from-the-real-world-economics

I wrote [About those high SBD prices](https://steemit.com/sbd/@remlaps/about-those-high-sbd-prices) a while back, and came to a similar conclusion.

Another point is that high SBDs accomplish another result.  They allow authors - the stakeholder group who already has the lowest incentive to hold steem - to immediately cash out a higher percentage of their post's value instead of waiting for 13 weeks, which is probably a big part of why so many people favor it.  If that's the goal, though, it should be addressed as an explicit change in the rewards algorithm, not through a back-door.

You missed a very important anti-hard-peg argument (or set of arguments):

Making such a huge change is trying to invasively regulate and control a booming market. Regardless of what motivates people (and greed is always a part in *any* asset), trying to do that especially by implementing a huge change with a flip of a switch is something markets don't respond kindly to.

<center>https://steemitimages.com/DQmZyAUroQG2Eb9q1qc9LCY25L9bog6BNBFsMerXVxw65EM/dont.png</center>

I hope you realize you are advocating for advocating a free market pretty heavily and drastically. If a country was considering doing something like that, wouldn't you be against it?

The intention for having two tokens on the same blockchain doesn't matter that much now, what's more important is what the market has decided to do with those tokens and if you try to artificially dictate to the market, you are bound to get your hand mangled up. The free market is always going to be a better authority on what the value of something should be than a whitepaper.

If you're right (and I suspect you are), then it's going to be difficult to make changes. Greed - especially short-term greed - can be a __very__ powerful motivator.