As Steemit continues to grow and expand, Steem Dollars are finding a new home in crypto investor's portfolios as a stable, upwardly mobile, hedge currency. Interested how? Keep reading!
SBD is Designed to Profit from Bull Markets and Ride out Bear Markets:
Many of us who use the Steemit platform are aware of the two currencies in which payouts are made: STEEM and SBD. We are also aware that the function of STEEM is to power up in order to affect payouts via voting power, and we know that SBD are each convertible to $1 US Dollar worth of STEEM.
This backing gives SBD incredible stability against fluctuating Bitcoin prices for those wishing to keep their purchasing power within the crypto space rather than exiting to fiat via high fee gateway only to want to buy in again at a later date.
SBD is a Safer than Tether for Storing Value:
Though Tether is also a US Dollar pegged crypto, it is growing exponentially, with each Tether requiring equivalent fiat to be stored in a bank somewhere. That somewhere has become more and more shaky, with Wells Fargo freezing $40 million in fiat backing last year, severing Tether's only US bank ties.
An external audit of Tethers backing has not been performed, and it is suspected that the backing, if it exists, is being held in private account in Asia. If that's not enough, Tether currently has no method of redemption back to real US dollars, somewhat nullifying any reason to even have backing.
SBD is a Desirable Currency in Both the Crypto and Fiat Worlds:
The good news is that Steem Dollars safer than Tether and has an infinitely greater chance of making gains against US dollars than simply holding US dollars alone! We can conclude that SBD should certainly be labeled as a hedge due to its peg and convertibility. SBD's history shows that it rarely dips deep below $1 for long, and on several occasions SBD has surged well beyond $2, and even was valued up to $18 just last week.
By now, it's clear that SBD is a solid choice when looking to preserve buying power against the US dollar long term. SBD exhibits great qualities in the realm of money choices and should not be overlooked. Exchange adoption continues to help push the value of this fantastic cryptocurrency going forward.
Are you holding Steem Dollars as a hedge?
Are you holding Tether to stay in crypto during bear markets?
Leave your answers in the comments below.
As always friends, be sure to check back often and click the follow button; my researchers, sources, and I follow the markets very closely and maintain a continuous feed of up to date fundamental analytics you should keep an eye on.
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