NEWSFLASH: STEEM BACKED DOLLARS - Sell into the High
My 27 SBD was worth about $200 at the moment. I believe it is worth selling SBD above $7.00! Turned out to be a better buy than STEEM if you could buy in at $1 where it was safe.
With SBD the supply can only quickly contract, but it cannot quickly increase. There is nothing to easily bring prices down other than the normal supply that is created for posting on a daily basis. Oddly, the best way to bring down SBD prices over time is that if STEEM prices increase. If STEEM price increases, then payouts increase, creating more SBD on a daily basis. If more SBD is created on a daily basis, then there can be more selling pressure and supply of currency.
STEEM Rally Stage 1 Complete
If you followed my post a week ago, I said STEEM was an excellent buy at 0.95 cents. From that post, it has rallied over 100% and pulled back.
With STEEM on the rise, we should expect higher payouts going forward. Also, once a major decline has played out, and a rally has begun, the first rally is rarely the last rally. Multiple phases to a cryptocurrency rally are the normal behavior. STEEM has completed one leg of the bull market it is in. I believe there are more legs to follow.
Bitcoin Future?
BTC has done a pull back from 18k, down to 12k given some late investors a better entry point. It is hard to say what BTC will do for near-term prices, but if anyone understands the long-term mechanics of a currency existing as the base exchange currency for cryptocurrency markets, then you will comprehend 10k is probably cheap for Bitcoin long-term. There is talk of alternatives to BTC, as if something will replace it. But without the consent of major exchanges changing their platforms for trading, nothing will displace the functionality of BTC.
As more currencies are traded directly for national currencies, it does reduce the usefulness of BTC, but due to money laundering laws and traditional banking restrictions, BTC remains the least hindered manner to trade with cryptocurrency.