Over the past week the SBD/USD has been on a downward spiral causing the loss of value of the Steem Back Dollar to the US Dollar. At the time of this post one Steem Back Dollar was only worth $0.69 USD, and it is expected to continue dropping to lows as far as $0.30 costing Steemians thousand if not hundreds of thousands in losses.
One of the main causes of this is the Steemit merger deal with Tron and the uncertainty pertaining to the future of the Steem and SBD currency, but it is also my view that there is too much SBD in circulation. As Upvotes are done, Steem and SBD is created and people aren't burning those SBD's and Steem to convert it into Steem Power. It't the basic principle of supply and demand. The more there is of something, the less it is going to be worth.
Think of a general economy. Steem Power is like the infrastructure, service and other investments made in an ordinary economy of a country to help the economy grow. You use the funds you have and it invest in those infrastructures and other thing to help with the growth of your economy. In the same way you need to burn your cryptocurrencies into Steem Power to help grow the platform. That way you burn your liquid assets to balance out the creation of and the amount of Steem and SBD circulation while at the same time reinvesting it into the growth of not only your own account but those of others.
Please comment below your views on this worrying matter so that we can learn from each other what the way forward is.
Lots of Steemian love!
Patrickob1
