<code>@l0k1 but with SBD I can easily to my friends pay how much the value is than with steem. No, thus, I disagree, Don't Do it Man :p</code>

<code>But I have just voted for your post... why not - points make possibilities, as long as you stay down to earth.</code>

Hartelijk Bedankt voor Uw commenteren!

#### In response: 
**PRECISELY.** 

SBD = Payment Instrument. 

Steem = New Internet Currency Between Steemians. 

Steem Power = Proof you are Sirius about Steem!

# You could call it Proof of Steem.

Also it just made me think of something - you could have terms for SBD instruments, where additionally they will unwrap after some period of time in exchange for a discount for being shorter term. Longer term note: higher total cost. They would have an accounting feature where they are split in accordance with the discount they contain for their duration. 

So you can then instead say you want to lock the price to the dollar for a week, you put that dollar in escrow with the business you purchase something from, and they know that the dollar value of the payment is the same when the escrow is released, for example. This arrangement could be a lot cheaper than one with a 1 year validity. Automatic expiry as well as unwinding with some other administrative fee for early cancellation.

SBD has to sell off steem to raise its value. When steem's value goes up, the rate of selling off steem has to rise to hold the peg. What part of this is adding value to Steem? Not only this but apart from the stuff that goes into @null, the total amount of it is being added to at a percentage rate with the rewards payouts, and that which is not burning is slowly increasing in value, which will again increase in value, and continue to demand more steem to sell to hold the peg.

It's a debt instrument. Read the Whitepaper again. It is not a token like Steem (similar to a weight of silver or gold in terms of economics) or an asset like Steem power (which is like a corporate stock). Debt. It has to be kept in a balance with Steem Power because it has the effect of devaluing Steem Power, which should not devalue because it is Steem-Off-The-Market, decreasing Steem supply and thus raising price.

@dantheman even warned quite a ways back that hyperinflation of either dollar or Steem could cause a huge amount of damage to the Steem economy, even destroying it (by being worth less than is required to fund the infrastructure).