Yesterday I bought some more SBD with Fiat (not other crypto).
The price of an SBD currently on the markets = $1.
I just can't find any flaw with this buy.
Unless the market cap of SBD reaches 10% of the market cap of STEEM it's possible to convert 1 SBD into $1 worth of STEEM.
It currently is around 5%.
It would mean STEEM needs to go to 50 cents before this is no longer possible. But even then you can just wait for more STEEM to be created until balance is restored and the conversion works again.
On the other side there are a lot of benefits though.
The biggest two being:
No real risk of of SBD going lower than $1 (Fiat investment stays the same).
Benefiting from a rise in crypto if that would happen. SBD has shown already that it goes up with the markets.
Also no SBD is printed right now so in a scenario where it would pump no one would be able to earn it (and sell it).
I therefor now think it's not a super bad idea to just keep a little SBD on the sideline, just in case.
What do you guys think?
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Greetings, Great Exyle
I think it is a good strategy for those who have "stopped money" to invest. Perhaps a pump can occur in the SBD as it has already occurred in times past and the person has a profit around 20 to 30% if they sell on time.
But is it really SBD it's not below 1 dollar??? If it does not stay, it is at 1 excellent time of purchase, since it is almost 100% pared with dollar.
Thank you and good afternoon!!!
The SBD is now less $1, and the convert SBD to Steem is already removed in the wallet, how do we convert the SBD that peg $1 to steem?
I'm currently running a test with this tool on my test account. Convert has started since yesterday. Know more in 2,5 days but I'm sure it's fine because I can see it in the blockchain.
Here is the original post: https://steemit.com/utopian-io/@mwfiae/new-project-sbd-converter
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You can also use CLI-wallet for those concerned about the security of their Active Key.
The command is convert_sbd username "1.000 SBD" true.
I put some conversions through when it dipped down to $0.95 today.
So probably the best sign of trust I can get :)You can also check the sourcecode or trust @therealwolf about it. He does promote my tool sometimes and he is a well known witness and owner/maker of smartsteem :)
The biggest security concern is prob the RPC node in terms of your program, which is the same concern as with the CLI :)
Why would the rpc node be a concern regarding security?
The key never enters the node as far as I'm aware and all the encrypting/signing does happen on client side.
Please correct me of I misunderstood anything.
It's surprising how little convert is currently being used. Think they need to add it back to the interface ASAP or risk the whole pegging mechanism from collapsing due to the silly mistake of having convert removed from the user interface.
To be honest as long as a few people know about it, the pegging will work. :)
But yeah it is an advantage for the more techy/experiemced people, that's why I made the tool mentioned above :)
Good buy with a low risk in my opinion.
Could it also mean most other altcoins have reached their bottom? The last time the SBD was being traded at $1.00 was in november last year, just before the crypto-boom began. After the top in the market it took months until SBD finally returned to its initial value, $1.00. This is probably the bottom for SBD. Hopefully it is the bottom for the market as a whole.
Not sure about the other alt coins. I do hope so. But SBD just seems like a good buy for now with fairly low risk. It at-least protects me against more downtrend until STEEM reaches 50 cents.
i really wanna get myself some cheap litecoins and cheap dash too ;)
I don't see the upside potential, to be honest. With Tim Cliff's change to the print rate in HF20, I can't see speculators driving the price of SBD substantially above a dollar again.
Of course, I didn't foresee the intial SBD pump, so I've been wrong before :)
It will be interesting, with @timcliff's changes SBD indeed will still be printed at 9% market cap of STEEM but that's not now. HF20 is still 6 weeks away (or more) and right now it doesn't seem like a bad buy to put some fiat in.
Why do you think there is no risk of SBD going below $1? It has been as low as $0.60 in the past, and hard fork 20 is going to massively increase the potential supply.
Because I will be able to convert is to $1 STEEM. (unless SBD market cap reaches 10% STEEM marketcap).
Sure, but the conversion doesn't necessarily give you $1 worth of Steem. The conversion happens over a time period of 3.5 days, using the witness price feeds, and the actual amount can be less than $1 worth of Steem if the price has continued to drop during that time. It can also be more, but it's likely biased to the downside in a bear market.
The price of STEEM has to drop below 50 cents for that to happen. Can that happen in 3,5 days....I guess so when it's really volatile.....it can also fly up (but in that case, I'll be happy anyway).
Nothing is 100% certain but in general I don't think it's a bad buy.
I think on the markets SBD will trade for around $1 for now. If it goes to 60 cents....it be a steal.
You get less than $1 from a Steem Dollar conversion if the final price of Steem after the 3.5 days is below the median price of Steem during the 3.5 days. It doesn't have to drop below a specific amount.
I will be buying up SBD as they go below $1, but I don't think it's a risk-free trade.
which exchange or procedure to get the 1 SBD to 1 STEEM conversion? The internal market is not price guaranteed and blocktrades neither as far as i know? thanks
There is a transaction type which allows you to execute the Steem Dollar contract. It used to be available on the Steemit.com wallet page, but I believe you can only do it in the Command Line Client these days.
Ah... So we will need to test this first to see if it works as we speculate at this time. Thanks 👍😀
I've done the conversion probably 100 times. So I know that it works.
Yeah but I mean you say... It used to be.... but now it is only available I believe... so it means at this moment we have not used the available option for conversion and I don't know about a command line interface
I think the HF20 changes make a haircut on SBD conversion more likely.
The changes to the print limits will allow SBD to be printed all the way up to the 10% debt level cap. This makes it more likely that the 10% cap will be reached. It only needs SBD to be a little above $1 to make 50/50 rewards the better option and for SBD to keep being produced.
In market conditions similar to the ones we have just lived through we could find ourselves in a market where Steem is falling but the SBD conversion guarantee no longer holds. (Imagine if the debt cap was currently at the print limits of 5% for example).
Something I think people should be aware of if they are looking to hold or purchase SBD.
Great idea and if everything works like it’s supposed to, a fantastic long tail investment.
I’m looking at it all right now. SBD but also STEEM. these are the prices that you OG’s talked about and we (new steemians) thought we’d never see again....
time to stock up :)
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Good buy! Steem below 1 usd is a good buy too.
i think it's always a nice idea to have a bunch of SBD in case. my plan, 100 sbd just sitting there for christmas times :)
I think that's a great idea. One thing to keep an eye on is how fast the debt ratio is approaching 10%. It's 5.6 % now. It was about 5.3 % yesterday.
What do you think would be the worst case scenario and how low likely is it? I mean it wouldn't be cool to be stuck with a lot of money in SBD and in the red for a long time.
Yes, you are right. If sbd is $1 now or lower we can keep some. A great idea but for those who are new it is opportunity too. Seriously I hope I have enough fiat to buy it too. If it get lower than it is real gain when it rises more than steem.
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I don't consider it a bad idea either, especially when we know the market will move in favor of Steem and SBD as the date of HF20 approaches!
I completely agree. Now... I just wish I had extra fiat to buy some with ;) Oh well.
Maybe it is not a bad idea at all...
I see SBD better than Tether...
We need more advertising regarding the goodness of Steem and SBD...
Well, the difference to Tether is, that you only get Steem for SBD. In this current market where the crypto bubble is burst, I wouldn't rely on any crypto - at least no until the AMA decision end of September.
In this situation @exyle I have some SBD do you think it would be a super cool idea if I use them to buy STEEM? or not?
I'm new to all the coin stuff, and very reluctant to buy into this bubble.
Yet it does look like a good deal.
Sounds like a good plan to me @exyle although I'm struggling at the moment trying to buy euros then crypto from the UK.
I didn't make any notes about how to get sterling into my Revolut account so I can change it to Euros. Spent tons of time on it yesterday and asked a couple of people to look for me and they couldn't work it out either.
I've done it before though so I must be able to find the information somewhere. When I do you can sure, this time, I will make notes!
Or maybe I can buy SBD with Sterling somewhere? If anyone reading this is in the UK and knows how to do it. Please let me know. Ta!
This is a stumbling block for many. Bitcoin or BTC remains the entry point for other crypto currencies. You must first establish a Wallet to receive BTC. I use a hardware Wallet called Armory. But it doesn't work independently so you have to also install and run Bitcoin core wallet and once synchronized (this can take a day if you start fresh) you can start up Armory. Make certain you have enough space on your hard drive as this will end up occupying well in excess of 100GB. It is also possible to have an on line wallet, but they charge a fee and if they get compromised you go down with them.
I'm in the EU so I use Bitonic to buy BTC direct, without dollar conversion so I don't need a dollar account at my bank. A quick search produced the name of www.coindirect for a similar service providing BTC for GBP after the obligatory bank account verification etc. Still with me?
Once you have BTC in your wallet you can buy SBD or Steem from Blocktrades, ..if you don't make any mistakes. There are other ways to buy Steem or SBD, but this is the route I took and it may not be right for you or your situation.
What we really need is an exchange that trades fiat currencies direct for Steem; until that time Steem will always follow BTC in it's ups and downs. Hope this helps, greetings!
Thanks for your reply @onnovocks.
I know how to buy BTC and how to buy Steem or SBD via Blocktrades but @exyle said he was buying SBD with Fiat so that is what I was asking about.
Specifically how to buy SBD with Sterling, although I'm assuming I will probably have to convert to Euros first.
A fairly good Idea actually. It a no risk investment and the truth is that devs are in no hurry to peg the SBD. Only one way from here. Up!
I agree with you, now SBD buy time is good, because after some days SBD rate will high, i think now is the best time for buy SBD,
Thank you @exyle
I think Same if I have more free money in my pocket... I try buy also .
But just now I hold ... and HODL :))
I think it's a 'buy' time in the trading world. Buy the dip! Like the @coinbros song! Have you heard it?
@exyle I am completely agree with you and I found SBD at this level after a very long time and I believe after this correction market will jump up soon then we will just keep thinking ohh it was 1 dollor we should have got big amount at that time. Thanks for highlighting this i am looking forward to buy some at this point.
I usually go with my instincts and most importantly where I feel the price is good anough for investment. If you feel the price of SBD is good enough,you definitely do the right thing. I have been buying a lot lately some other cryptos. However, I still have some fiat on the sideline and if Steem, not SBD, if Steem gets another dump to below $0.9, I start investing with my fiat in Steem as well. I never thought there would be such a low prices like we have now. My mind was set to make an honest comments and perhaps earn by getting rewards. Now, my mind is changing slowly with prices getting cheaper and cheaper.
Gread idea, I think about it👍
I am still HODL all my steem.
I read somewhere that a person bought SBD at $0.96 dollars. how is this possible?
I think it would be better to buy 5k Star Wars mugs!
They will go up in value for sure!
😀
Mark @exyle I like the scenario that you just laid out for the reason to purchase SBD at this point in Time. I know you will maybe see and read this today, but I just wanted to repost the link because this too is a REAL BIG DEAL for Humanity........https://steemit.com/bitshares/@taskmaster4450/bench-team-changing-the-internet-and-freedom-big-release-tomorrow
Good for you man. Keep investing!!! That stormtrooper Mug is awesome, I loved it
Buying SBD at this point allows the investors to do something that doesn't happen very often in crypto investments, low/no risk.
And of course, you are investing on a project that has shown how big it can be and has a great team behind it, supporting a sustainable growth.
Seems like a good idea to have a little SBD on the side. These markets are crazy right now. It is really difficult to predict where they will end up, but I am not going to make myself sick trying to figure it out.
its a great deal to buy with fiat as you are in no risk situation with that the witness will try to keep the prices close to $1 mark and the pumpers will pump it hahah
While Steem and Steemdollar have such a low price, making a good investment would be ideal, it's an excellent option, I'll soon make my investment to buy Steem.
Well buying SBD in fiat is nit a baf idea because it just reduces risk and has no much disadvantages. I dont really agree with your view of SBD not going below $1. Though the fact is that it seems difficult because of the current market but it can happen. You'd be aware of SBD at $0.6 at a time earlier. Though it aint a baf idea and you have just got a good fetch.
No free fiat lying around yet. Let's bring SBD down to sweltering $.85 .Then it's time to smash my piggy bank and go hog wild before HF20 splits!!
Woohoo! Get ready for the ride!
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