UPDATE: Do not use the conversion function anymore as we are now under the Haircut Rule
It is a perfect time to convert SBD to Steem.
Lowest ask: 0.520339
Not only do you get to take advantage of the 2:1 trade, you also benefit a few percentage points as SBD isn't quite $1.
While posting with 100% Steem Payout will produce similar results, I prefer to use 50/50 and converting.
Converting is not the same as selling on the internal market
Using the internal market to trade SBD for Steem is just that, a trade. The SBD just changes hands and is still in circulation. By using the sbd conversion functionality on the blockchain you will remove the SBD from circulation and reduce our debt ratio.
The SBD conversion will give you $1 worth of Steem for every SBD you convert, right now SBD is $0.92, so you are not only receiving a great conversion due to the low price of Steem you are also getting an 8% bonus.
The conversion feature takes 3.5 days and will use the market average to determine how much Steem you get. If you need help converting, I cover an easy way to do it in this post as it is no longer available on the website.
If you are converting, you will notice the conversion will disappear from your wallet at times, this doesn't mean you lost anything, it is just a UI problem. You will receive a notification in 3.5 days when the conversion has completed like this:
Fill convert request: 3.231 SBD for 5.504 STEEM
If you need help doing this, feel free to post a comment with any questions. This is not investment advice and merely my opinion. Your results may vary and the sky is blue.
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Except, as may be the case very soon, when outstanding SBD is more than 10% of the STEEM market cap (this has happened, or may happen, in this case due to STEEM's price and market cap shrinking rapidly).
In that case SBD's conversion amount is reduced proportionately. So far the reduction looks to be small, and the low price of SBD provides a buffer, but if STEEM continues to drop the reduction may become significantly larger, and the conversion could come out at a loss. It is definitely something converters need to consider very carefully (and one reason conversion was considered an "advanced" feature and removed from its prominent position in the steemit.com wallet).
Conversion may still turn out to be a great play if STEEM recovers quickly. We will see.
Just for clarity can I ask, in proportion to what? Is it a linear reduction within a range like with the print limits? What is the range?
Proportionately to the STEEM market cap which mostly means STEEM price (since STEEM supply only changes slowly). So, in effect, SBD becomes pegged to STEEM once it passes 10%. So if STEEM then drops 10%, then the conversion rate for SBD would drop 10% as well (and vice versa). This assumes a constant SBD supply. There won't be printing so SBD supply can only change (decline) via conversions or burning. If it does then the reduction in conversion rate from a STEEM price decline would be correspondingly smaller, but that's probably a much smaller factor than movements in the STEEM price.
OK, thanks! That's clear.
Good point about the haircut rule, I should have mentioned that.
at any rate, if we reduce debt it's a good thing, right?
What is a terrible idea without a doubt is to be selling/dumping STEEM or SBD into the markets.
Yes, it is good to reduce debt in this situation and not good to dump (if you don't want prices going down, but on the other hand, if you dump and then prices do go down, it is good for you that you dumped).
I just wanted to make clear that thare are additional risks to doing conversions at this point since the conversion target declines along with STEEM once all SBD exceeds 10% of the total STEEM market cap.
We did convert SBD per your instructions and got a couple more STEEM for each SBD after the conversion... We're considering buying more STEEM but not sure if the price is still good after Coinbase releases the funds.
what to do...what to do...
No one can answer that. Will it go lower? Likely. When will it stop, and will it bounce back, and how fast? Who knows. Long term, I see this as a faded memory.
Even @freedom and @blocktrades have joined the wagon!! yussss... time to accumulate peeps! selling is a terrible idea
Thanks, @themarkymark!
I have taken your professional financial advice, sold my house and bought STEEM. I also reduced the debt ratio by converting 3.5 SBD :D
Lastly, I do not own a house.
Cheers,
OFI
I think it's a bit too early to do this, steem goes down a few days later,
Or could bounce back, who knows. I've been doing it for the last 3-4 days. Starting today would been better than 4 days but no one knows. It may bounce back up, it may hit $0.
Didn't realize this. Thanks for the heads up @themarkymark
This is really expository, I will make a trial and get back over here to testify to the experiment. Thank you 👍
I'm sbd poor bro... but I do have cash, bought STEEM
thanks for the heads up! i've never used my feature. i'll see if i can stop myself from buying more @steemmonster packs with my SBDs :) hehe
Great time to power up some more. Done!
Thanks man! I was wondering why my conversion disappeared yesterday. 😂
Posted using Partiko iOS
How low will steem have to get until we exceed 10% debt?
Also, I know you’re not a financial expert, but where do you think we’re gonna see a bottom?
Market looks like it’s been cut deep
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No idea what so ever. I can tell you what I hope, but I can't even remotely guess what it will be.
The fact it is happening to other coins (namely BTC) is a big reassurance.
It is right around 50c, and STEEM is already below that. There is a delay built into the system so the effect of the 9% and 10% rules won't kick in right away. Another factor is that SBD conversions reduce the amount of SBD and therefore reduce the price necessary to hit 9% or 10%. If STEEM recovers quickly they may never kick in. We'll have to see how it plays out.
Don't we hit the 10% SBD cap within the next 36 hours?
What happens to conversions then?
Won't change conversions, will just change payouts on posts.
9% changes payouts. 10% does change conversions. We are currently above both (once the delayed feed catches up). See my top level reply.
Isn't there a 9% SBD print cap at which SBD stops being given in payouts and then a 10% hard cap at which conversions get a haircut?
edit: smooth explains it!
yes and these two have both been reached almost hours apart.
I haven't done it yet, but I'm contemplating it. I'm probably going to wait a few days to see how the price changes tough. I would probably have done it earlier if it hadn't been for the fact that the feature has been removed from Steemit to be honest, because that was a quick and convenient way to do it. It's still pretty easy, but much more of a hassle compared to before.
This is a great feature and I recently converted the SBD I have been holding months and got 220 Steem for 129 SBD which is a great rate inbmy opinion. In fact, I have looking to see what exchanges are selling SBD with active wallets to buy SBD to convert instead of buying Steem directly. I hope I can find one...
I'll give it a try
Posted using Partiko Android
thanks for the tip! I made the mistake of buying steem with SBD, and din't know you could also convert. will look into it =)
All this is new to me. I hold some SBD at the moment (147). Should i be doing anything with it (converting)? Or is it too late?
Thanks in advance.
I am still converting my SBD to Steem.
Thank you 👍
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Oh man I love your cat meme!!!
Why didn't I find this post over the weekend?? Today it showed up as a resteem in the feed of a guy I'm now following because of his interest in sewing machines... @motoengineer
Ha! Apparently I already voted for you as a witness:
