BITCOINHere’s How To Take Advantage Of The Steem Dollars (SBD) Run Right NowPublished 2 days ago on December 8, 2017 By Samuel Rae
steemit image
Between November 20 and December 8, 2017, the price of Steem Dollars (SBD) rose from around $0.96 a piece to $7.36.
That’s a close to 670% increase in what essentially amounts to a couple of weeks.
Here at Global Coin Report we’ve taken a look at many of these sorts of moves over the past few months and, as part of our coverage, have outlined what we deem as being the driver behind the action we have seen and in turn what we expect to come next from the tokens that are moving.
This time around, however, things are a little bit different.
Before we explain why it’s worth noting exactly what SBD is and how it relates to the platform Steemit and the cryptocurrency Steem (STEEM).
As many reading will likely already be aware, Steemit is a sort of social media and content curation type platform over which content creators get paid for the content they create.
This payment is made in STEEM and SBD is a sort of sister currency to STEEM that’s designed to track the US dollar and offer a quick and easy way of figuring out exactly how much each Steemit user is getting paid for the content they create.
As such, inherently, SBD should always trade in and around the one-dollar mark.
Take a look at action over the last three months, as illustrated on the chart below, and this becomes apparent.
SBD Chart
Of course, pegging something like this to the US dollar is going to have its inefficiencies and the latest run is one such example of this potential for inefficiency.
The thing to realize, however, is that this isn’t like a normal cryptocurrency – it’s not running to the moon. It will return to one dollar as the blockchain mechanisms on which Steemit rests adapt to the increased price and, in turn, push it back down.