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What is the future of the Steem Backed Dollar (SBD)? During the early days of Steemit, the SBD was supposed to be pegged to the dollar. As a result the Steem Backed Dollar was often used as a port in the storm of a very volatile cryptocurrency market.
As a bear market approached, many investors would invest in SBD in order to stay in crypto, but at the same time enjoy a safe haven from the otherwise volatile market. As these investore grew in number we watched SBD hit unprecedented highs. The Steem Backed Dollar reached a high of almost $20 at one point. While this may seem like a good thing, this made SBD just another volatile cryptocurrency.
We have now seen SBD correct to lower levels, but will it last? More importantly, is it better for the price of Steem for the Steem backed dollar to remain low? This question seems to depend on whom you are asking. We are even seeing some discussion of getting rid of SBD altogether.
Steemit has enjoyed tremendous growth during the last year so it is only natural for Steem and SBD to undergo some changes.