Difference between revisions of "Steem Dollar (SBD)"

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The Steem Dollar (aka Steem Backed Dollar or SBD) is a token that is meant to be worth about $1 USD, making its value much more stable compared to STEEM (see [[STEEM_Tokens]]. To be a bit more technical, a Steem Dollar is a promise to pay one dollars worth of Steem when it's redeemed.
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The Steem Dollar (aka Steem Backed Dollar or SBD) is a token that is meant to be worth about $1 USD, making its value much more stable compared to STEEM (see [[STEEM Tokens]]). To be a bit more technical, a Steem Dollar is a promise to pay one dollars worth of Steem when it's redeemed.
  
 
The benefit of Steem Dollars is that business can accept them more comfortably since they have a more stable value. Can you imagine being a shop owner and trying to sell your $50 product for STEEM which a couple months ago would have been for 500 Steem compared to today being less than 50. Pricing their products and services are much easier when using a stable value, as well as knowing that what they've already been paid, won't loose value.
 
The benefit of Steem Dollars is that business can accept them more comfortably since they have a more stable value. Can you imagine being a shop owner and trying to sell your $50 product for STEEM which a couple months ago would have been for 500 Steem compared to today being less than 50. Pricing their products and services are much easier when using a stable value, as well as knowing that what they've already been paid, won't loose value.
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If STEEM course is at 10 cents, one Steem Dollar could be redeemed for 10 STEEM. When STEEM is at 2 USD, a Steem Dollar would redeem for 0.5 STEEM.
 
If STEEM course is at 10 cents, one Steem Dollar could be redeemed for 10 STEEM. When STEEM is at 2 USD, a Steem Dollar would redeem for 0.5 STEEM.
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===Predecessor===
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[[Dan Larimer]], creator of the [[Steem]] [[Blockchain]], had the first insight to create a US Dollar pegged cryptocurrency with [[BitUSD]] and [[BitShares]] [[Blockchain]]. In June 2nd, 2013, he published the first idea of [[BitUSD]] in [[Bitcoin]] Forum – Creating a Fiat/Bitcoin Exchange without Fiat Deposits (see [[BitShares:Proposal post]]) – including a [[BitShares]] white paper.
  
 
===Notes===
 
===Notes===
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* [[BitShares]]
 
* [[BitShares]]
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* [[BitUSD]]
 
* [[Steem Exchanges]]
 
* [[Steem Exchanges]]
 
* [[STEEM Tokens]]
 
* [[STEEM Tokens]]
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==External links==
 
==External links==
  
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* '''Global Coin Report''' : [https://globalcoinreport.com/heres-take-advantage-steem-dollars-sbd-run-right-now/ Here’s How To Take Advantage Of The Steem Dollars (SBD) Run Right Now] ''Written by Samuel Rae, published in 12/8/2017''
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* '''The Merkle''' : [https://themerkle.com/what-is-a-pegged-cryptocurrency/ What is a Pegged Cryptocurrency?] ''Written by JP Buntix, published in 5/14/2017''
 
* '''Boxmining YouTube Channel''' : [https://www.youtube.com/watch?v=gS6BP3RxJFs STEEM Explained: STEEM, STEEM Power and SBD] ''Video tutorial by [https://steemit.com/steemit/@boxmining/steem-explained-steem-steem-power-and-sbd @boxmining], published in 5/8/2017''
 
* '''Boxmining YouTube Channel''' : [https://www.youtube.com/watch?v=gS6BP3RxJFs STEEM Explained: STEEM, STEEM Power and SBD] ''Video tutorial by [https://steemit.com/steemit/@boxmining/steem-explained-steem-steem-power-and-sbd @boxmining], published in 5/8/2017''
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* '''Alt-M''' : [https://www.alt-m.org/2017/04/06/dollar-denominated-cryptocurrencies-flops-tethered-success/ Dollar-Denominated Cryptocurrencies: Flops and Tethered Success] ''Written by Larry White, published in 4/6/2017''
 
* '''99 Bitcoins''' : [https://99bitcoins.com/making-money-with-steemit-steem-dollars-and-steem-power-explained/ Making Money with Steemit (Steem Dollars and Steem Power explained)] ''Written by Ofir Beigel, published in 10/14/2016''
 
* '''99 Bitcoins''' : [https://99bitcoins.com/making-money-with-steemit-steem-dollars-and-steem-power-explained/ Making Money with Steemit (Steem Dollars and Steem Power explained)] ''Written by Ofir Beigel, published in 10/14/2016''
 
* '''Andrew Levine YouTube Channel''' : [https://www.youtube.com/watch?v=g2TU6lyu90I Steemit 101 - Steem, Steem Dollars, and Steem Power] ''Video tutorial by  Andrew Levine [https://steemit.com/@andrarchy @andrarchy], published in 7/15/2016''
 
* '''Andrew Levine YouTube Channel''' : [https://www.youtube.com/watch?v=g2TU6lyu90I Steemit 101 - Steem, Steem Dollars, and Steem Power] ''Video tutorial by  Andrew Levine [https://steemit.com/@andrarchy @andrarchy], published in 7/15/2016''

Revision as of 23:50, 9 December 2017

The Steem Dollar (aka Steem Backed Dollar or SBD) is a token that is meant to be worth about $1 USD, making its value much more stable compared to STEEM (see STEEM Tokens). To be a bit more technical, a Steem Dollar is a promise to pay one dollars worth of Steem when it's redeemed.

The benefit of Steem Dollars is that business can accept them more comfortably since they have a more stable value. Can you imagine being a shop owner and trying to sell your $50 product for STEEM which a couple months ago would have been for 500 Steem compared to today being less than 50. Pricing their products and services are much easier when using a stable value, as well as knowing that what they've already been paid, won't loose value.

To try to keep the SD around the $1 mark, Steemit's Witnesses (see Steem_Witness) can change the interest rate paid (quarterly) for holding them in your wallet. Lately this interest rate has been 0% with the SBD price being higher than desired. When it gets near or under the value of $1 USD, we will start seeing the interest rate increase.

Steem Dollars may also be converted into STEEM in a process that takes 3.5 days.[1] But there is a quickier option using the Internal market.

Examples

If STEEM course is at 10 cents, one Steem Dollar could be redeemed for 10 STEEM. When STEEM is at 2 USD, a Steem Dollar would redeem for 0.5 STEEM.

Predecessor

Dan Larimer, creator of the Steem Blockchain, had the first insight to create a US Dollar pegged cryptocurrency with BitUSD and BitShares Blockchain. In June 2nd, 2013, he published the first idea of BitUSD in Bitcoin Forum – Creating a Fiat/Bitcoin Exchange without Fiat Deposits (see BitShares:Proposal post) – including a BitShares white paper.

Notes

SBD course isn't fixed, in some times like from May to June 2017 it has been closer to $2 USD. In August 2017 it lowered to $0,8 USD.[2]


References

  1. Steemit FAQ: What is the difference between STEEM, STEEM Power, and Steem Dollars? Retrieved in August 22nd, 2017
  2. Coinmarketcap.com : Steem Dollars (SBD) Retrieved in August 23rd, 2017

Links

Related articles

External links

In other languages




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