I agree with you, how SBD are actually created. Let's think this through:
SBD price goes down further
People start to use "convert" instead of selling into the market
A week later, they get STEEM
Steem are sold
The market cap of Steem goes down
Less SBD are created from posts (because the market cap went down)
Less sell pressure due to SBD sell-off and convertion due to less amounts available
Meanwhile people start to understand the implications of SBD (free instant micropayments, interest)
Buy Pressure for SBD starts to build up again
Meanwhile the network grows and demand for SP grows aswell
People buy into Steem to get SteemPower to obtain more VotingPower and higher rewards
Marketcap rises
Rinse and repeat until sufficient market traction slows down the process
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