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| comment | | "parent_author":"",<br>"parent_permlink":"steem",<br>"author":"cabi5boh",<br>"permlink":"no-free-lunch-for-sbd-a-failing-peg",<br>"title":"No Free Lunch for SBD. A failing peg.",<br>"body":"<html>\n<p>Despite the pegging mechanism,<br> the price of SBD has been consistently trading at a ~15% discount for the last couple of months. However,<br> there is no way of taking advantage of this (<strong>no free lunch<\/strong>),<br> because the feed-based conversion,<br> from SBD to STEEM,<br> takes a week,<br> and the price of STEEM <strong>has been consistently losing ~15% per week<\/strong>.<\/p>\n<p><img src=\"http:\/\/i.imgsafe.org\/39ae7b56a3.png\" width=\"1200\" height=\"1040\"\/><\/p>\n<p>It looks like this is the driving market mechanism right now. Past the pump phase,<br> the conversion function forces down the price of STEEM (at a weekly rate) instead of pushing up the price of SBD. In face of this,<br> there is no incentive for buying SBD*.<\/p>\n<p>This is why I am cashing out.<\/p>\n<p><br><\/p>\n<p>* Notice that the 10% APR interest has a neutral effect: It is a universal interest rate (invariant to any spending\/saving decision),<br> so it cannot magically create value in the (SBD-based) economy. In this sense,<br> it is more like a <strong>remurrage<\/strong>: Prices cannot be expected to be SBD-stable,<br> thus removing any apparent <em>saving<\/em> incentive.<\/p>\n<\/html>",<br>"json_metadata":" \"tags\":[\"steem\",<br>\"market\" ,<br>\"image\":[\"http:\/\/i.imgsafe.org\/39ae7b56a3.png\" " | | vote | "voter":"cabi5boh",
"author":"cabi5boh",
"permlink":"no-free-lunch-for-sbd-a-failing-peg",
"weight":10000 |
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