# Follow that pig!

I think I was watching a [Tai Zen](https://www.youtube.com/channel/UC_S5FBcMfrFbeV1ZRa3dJmA) video when said words to the effect of, *'if you see pigs flying in the cryptocurrency market, don't stand around questioning it, go with it.'* For the last few months we’ve enjoyed a substantial mark-up on the Steem Dollar. I never thought I'd see such a premium on a pegged cryptocurrency. However I haven't been spending too much time wondering what the hell is going on. I've been taking Tai Zen's advice and going with it. 

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# Turkeys do vote for christmas sometimes…
I’ve been fortunate enough to earn a decent amount of Steem Dollars through posting here on Steemit recently. On one hand the recent Steem Dollars price has suited me. I sell the Steem Dollars I earn on the open market for a fantastic premium.
 
I’m no sage however I’m confident that a Steem Dollars (SBD) should be worth around one dollar (USD). Maybe +- 20% (maximum) depending on the climate. . So when I see 50% - 2000% markups on SBD, I’m going to sell.
 
However I am mindful that someone will likely be holding the bag when SBD corrects and gets back on it's peg. I'm a long term holder of Steem and I don’t think it’s healthy for the Steem eco-system to have people getting burned by buying over-valued SBD. SBD wasn't designed as a vehicle to be speculated on as it's value is intended to be fixed. 

So I’ve tried plenty of times in comments and posts to explain the nonsense of paying so much SBD, eventhough doing so is against my short term interest.
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# Hedge
Selling my Steem Dollars has had one downside. I think it's important in a bull market (like the one we're currently enjoying in crypto), to hedge against a downturn. I've always seen SBD as a fantastic tool to potentially hedge with. Being pegged to the dollar it allows me to retain a dollar of value without having to cash out into fiat.

# Profit over security
However the temptation of the premium has proven too much to resist. So it has meant me having to hold my ‘hedge’ in actual fiat. Either on an Exchange or cashed out to my bank account. I really don’t like converting to fiat unless I need the money. Also we all (should) know the dangers of holding anything on an Exchange. So profit has come at a price albeit a small one.
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# Returning to an Steem Dollar norm
Over the last couple of days SBD has been returning to its dollar peg. I can now look to holding Steem Dollars again. I like the idea of holding dollar equivalents in a crypto wallet. Steem Dollars really works for me because I trust the wallet (with its added security of the 'Savings' waiting period). Also there is the prospect of interest earnings returning.
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# Perfect timing
If crypto goes into a downturn, I suspect traders may treat SBD like ‘just another crypto’ (as they did in the bull-market). This might mean SBD gets dumped substantially below its dollar peg. If this happens buyers could pick up a massively discounted SBD. As an added bonus, a discounted SBD could increase the likelihood of interest being offered to SBD holders (as an incentive to buy and maintain the peg). 
 
Provided the Steem market is liquid and the network healthy, SBD is beginning to look attractive again. In an overheated crypto-market, it may prove the perfect safe haven during any downturn. I'll certainly be keeping an eye out and looking to pick up some SBD on the cheap!

#### Usual caveat, this is not investment advice, just thoughts on things I'm considering doing...