Great read, thanks.

Great post thanks for sharing

Keynesian economics have been dominant for so long that some establishment ‘experts’ can’t even accept that the world has passed them by.

Reading your posts and with the level you earn rewards is so astonishing. It is very hard thing for the newbies to get.

Great post thanks for sharing

Amazing Post!

Very interesting post ..

Courage is the basis of everything when you find courage and you find love and find the ability to succeed

exelente

Thanks for the information, i have learnt a lot on this post and my doubt has been cleared. Now i know better why beloved SBD goes fluctuating. Nice

Amazing Post thanks for sharing

Amazing post

Actually had forgotten most of my Managerial Economics degree (from over 10 years ago) until i started reading the steem white paper recently and suddenly, suddenly, it was like.... Ohhh yea _that_, _that's_ why we care...

Oh, this post gives me an different view on the issue mentioned. Thanks.

I've always believed that while sbds are above 1$ it makes the platform more attractive for newcomers.

“The "peg" is working perfectly to normalize the price of SBD and has already cut price by 85% in the last 3 months.”

In the context of the overall market correction this seems a bit of an exaggeration. When normalized against STEEM a bit of a different picture emerges. The floor appears to be the price of STEEM and not $1 of STEEM. Do you believe this is this is a psychological level at which point the market forces step in?

Good post, let me resteem, visit my blog. Thank you, happy to work.

Don't get KRUGGED, learn Austrian Economics.

Thanks, now i have a post to direct people too next time i find myself in that conversation.

I like your post. Don't let "The Wealth Of Nations" hit you on the way out, mini-Krugmans.

I wish I joined when it first started. :(  Three months in and the prices has decreased from 3.82 to 2.25.  Not too bad.  I met great people and even got my creativity going in my posts.  The way you explained it makes me feel better.  Thanks for helping us understand Steemit and the block chain. Appreciated :)
Joy

Have a look at Maker Dai which will take over the SBDs first mover advantage (if it hasn't already)

It's not about Keynesian economics vs free market.  It's about stable crypto that can bring commerce to the platform.

I don't know what tell for thanks your post very very interest.  I like it

Thanks for getting that out of the way.

Listening to opinions will keep you sick, stupid and poor

So gentle men

If people get more than they should, they will not complain :-) 
Good thing if SBD is fixed at 1$, it could be competition to bitUSD and Tether.

No, it isn't pegged, but there is no clear argument that it is falling  because the system is working to get SBD down to $1. It is more likely to be tracking the general trend of the market. SBD has nearly identical trend charts to all 30th-50th place coins over the last month. When you consider that a dozen other coins, including Dogecoin, have had the same price movements, it becomes hard to argue that the value of SBD is being driven lower by design.

![](https://steemitimages.com/DQmUKmVS7zxX9E3yaQ8ASSoEQWbL74x2tpq5pAzhuxayjyx/image.png)
![](https://steemitimages.com/DQmPSosqTUjVr53vyG9Q8bUt775M78iYG4kaymV6nWWEVib/image.png)
![](https://steemitimages.com/DQmaPGRtkdqroNt7sed44gft38bWZb8nF8jqiViG4BGaudC/image.png)
![](https://steemitimages.com/DQmavFXvThck6HMZ7dkXbNHZPvVt1HZdYzy9v3yLXieJEmx/image.png)
![](https://steemitimages.com/DQmU8AkvxeuKMSBfTriFFX7FdJPdmSPYn64V6msCaFa9uUn/image.png)
![](https://steemitimages.com/DQmT9gBV3V4rW342iHgnZeW9CyEsneMDC3J9PLLovB3om6U/image.png)
![](https://steemitimages.com/DQmRTEH9dmmiaV86GAB5suMmX292LdEUuwt5Yu2yjTppi8s/image.png)

I never had much use for Keynesian economics, and here's a nice illustration why. 

Independently of this, it *would* be nice if SBD were fairly stable, at least if we every have ambitions of having an actual economic marketplace inside the Steemit ecosystem.

I think Paul Krugman is an orthodox. What is your opinion?

"The steem whitepaper is not a bible and is not immutable unlike the blockchain" - coming to think of it, wouldn't it be a good idea to have it on the Blockchain in an updated version ? When I search I can only find the posts dating from 5-7 month ago (or from 2016). Too bad there's not a more active thread around the current code base and how it should be described in an up-to-date version of the whitepaper.

"The steem whitepaper is not a bible and is not immutable unlike the blockchain" - coming to think of it, wouldn't it be a good idea to have it on the Blockchain in an updated version ? When I search I can only find the posts dating from 5-7 month ago (or from 2016). Too bad there's not a more active thread around the current code base and how it should be described in an up-to-date version of the whitepaper.

The precious whitepaper clearly mentions that a peg is intended, but it is imperfect. I've cited that two-way conversion segment before as well, but now I'm beginning to wonder whether @smooth is correct in that a severely gimped reverse conversion mechanism would actually set us in the right direction and achieve the peg more quickly.

From my observations, people that are against the peg like that SBD is worth more than a dollar. We don't have to peg the SBD to a dollar. We can peg the SBD to 2 dollars  (for example) :P

Having a peg is obviously better than not having a peg, and I can see where the proponents of the peg are coming from in term of having a stable base on which to offer services without having to resort to on-the-fly conversions or even having to worry about price fluctuations at all.

Nice post 
Follow back plzz

the arguments I have read for this 'pegging' are to have a stable currency for an economy built on steemit.  Let me give you an example.  I pay 10 SBD for a months subscription to steemsql.  The first month this subscription came in it cost me 70 US$ due to the price of SBD.  My monthly gym membership doesnt cost me that much. Now at current prices this will cost me us$ 22.  Without a stable price on SBD its difficult to run an business where people know what they will be paying each time for a product or service.  For this reason, I understand and accept this reason for pegging SBD.

Now let me change hats.  I am an author on steemit and spend many hours preparing an analysis before I do a post.  When the price of SBD is higher, I win......simple.

So that leaves me as one of the undecided on what is the best course of action for SBD.  My preference, let the markets decide.

Which brings me to my next point.  The markets are deciding and as shown with other charts, the price of SBD is following a trend that other coins are following and when it hits $1, well lets see if it does stay there!  

As for the whitepaper - I read it some time ago and know at the time it was out of date.  For some reason I did think steemit brought out a new one, guess I was dreaming...

Great SBD rant! While I don’t understand the inner workings of this market, I can certainly tell from where I’m sitting that the SBD don’t need to be messed with. They seem to be working just fine for my taste and I’m happy to see them to continue operating this way moving forward! Thanks for the post!