Why do we use SBD as our preferred currency here on the STEEM platform? Shouldn't STEEM be the currency of choice?
There is a lot of money changing hands here on the STEEM Blockchain. STEEM and SBD transfers number in the tens of thousands every day, and a lot of those transactions are to and from the bid bots. At the moment those bots accept both STEEM and SBD as bids, but the bids come mostly in SBD because that's what the rewards we get a given to us in. We have very little choice. SBD is our pocket change, and STEEM Power is our savings. We don't get STEEM to spend.
Yesterday there were 52819 SBD transfers to the value of 114054.741 SBD, and 10228 STEEM transfers valuing 312593.3 STEEM. Considering there is a circulating supply of 10,913,536 SBD, and 271,026,429 STEEM, it is clear that SBD is used for a lot of smaller value transactions, and STEEM for the higher value transactions. SBD are the coins, and STEEM is the banknotes, so to speak. But why? They are both worth roughly the same right now. SBD is just more readily available.
So what if all the major bid bots had to change their bidding currency to be exclusively in STEEM?
I'm talking about the bots like @upme, @sneaky-ninja, @jerrybanfied, @postpromoter, @buildawhale, @smartsteem, @promobot, @upmyvote, @therising, @rocky1, @appreciator, @boomerang, @booster. Perhaps all of them? These 13 account for, conservativley, over $620 per hour in bids. That is about 258 STEEM per hour. I say conservatively because this is based on incoming bids up to 75% of the upvote values of these accounts. More often than not the bidding gets above that threshold.
Here is a little table of info I pulled off @yabapmatt's really neat Steem Bot Tracker, with a few calculations thrown in.
What if bids were only accepted in STEEM?
For one, there would be a drop in demand for SBD, and an increase in demand for about 258 STEEM every hour, or just over 6200 STEEM per day, and that's just on these 13 account.
Accepting STEEM only would encourage people using these bots to go to the market, and buy STEEM with their SBD, causing an increase demand for STEEM, and an a lower demand for SBD as they are sold off.
I wonder if this change would make any significant impact on the price of either STEEM or SBD. I could definitely see the internal market prices being affected, and SBD dropping back down towards the $1 mark. But would the external markets follow suit at all? I don't know if the trading volumes inside the platform would be high enough to influence the prices externally much, or would it?
This is just a thought that popped into my head. Why don't more services make STEEM their primary method of payment, just like STEEM Power delegation leases through @minnowbooster are? If we had more services taking STEEM instead of SBD, that would naturally push demand for, and therefore the STEEM price up, right?
My challenge to those taking both is to stop taking SBD for a while, and only accept STEEM. If enough services do this, it could help to keep SBD at the peg, and send STEEM back on its way up again, making it the primary currency on the blockchain. As long as SBD is used as a primary method of payment, STEEM will be held back from reaching new highs independently of the SBD price.
Is it just too inconvenient to get liquid STEEM?
Is that the problem? Rewards are paid out in SBD and SP. It's just too cumbersome to go to market and traded your SBD for STEEM. Add to that the removal of the conversion function in our wallets, and SBD is hands down the most convenient currency to transact with. STEEM seems to be locked away, difficult to access quickly. It's like having to raid the piggybank for a few coins at a time.
So, how about we also introduce a 25%/25%/50% Reward distribution between SBD/STEEM/ and SP? I can see the need for SBD in some places, when the 1USD=1SBD peg is actually functioning as it should, but right now SBD is the currency of choice, and I don't thin it should be. I'd be interested to know what your thoughts are on this.
Have a great day!
