ir.hn (OP)
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Activity: 322
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Consensus is Constitution
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June 09, 2018, 01:26:22 PM |
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Steem dollars. What a great idea! Miners get paid in steem at a value that is tethered to the US dollar! Whenever they want to cash it out, the Steem blockchain prints out of thin air one USD worth of steem and gives it to them.
Now that is all well and good...until the price of steem starts going down. When this happens there will be a "run on the bank" for steem and people with steem dollars will be cashing out into steem to sell. The problem here is that in order to give someone a dollars worth of steem, when steem price is low, the blockchain has to make ever greater and greater amounts of steem to equal a dollars worth. Now this creates even more steem supply so steem is worth even less so even more steem will have to be created to pay out the next steem dollar.
Why has no one realized this?
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