So what are the pros and cons of the following?
1.)Converting Steem Dollars to Steem over 1 week
2.)Selling Steem Dollars on an exchange, converting to Steem and sending that back to steemit in your wallet.
Does it depend on the amount of steem dollars being converted?
Eg. If you received $1,000 as an author reward would it be better to do option 1 or 2?
The exchanges have transaction fees, but would that transaction fee be negated by your increased steem power that you now have a week earlier than you would if you had waited?
I'm really curious to know, and you are right. Far to many people are confused about the dollar amounts and what you actually receive and how steem dollars are pegged to a dollar etc.
While I love the whitepaper, maybe someone could write a guide pdf to go alongside it in layman's terms by asking people what their biggest confusion is and answering them in paper for or faq.
The guide should have the approval of @ned and @dan, kind of like a "steemit for dummies," because there are many that are familiar with posting on social media, but cryptocurrency is way beyond them with the current whitepaper, and finding articles in the google search is not the easiest thing to do yet.
Note that option 2 can be performed entirely on-chain, simply by using the internal exchange between STEEM and SD.
Option 1 involves a certain degree of risk; you can't know exactly what price you'll get your exchange at, all you know is that it should be relatively up-to-date at the time the conversion takes place. Option 2 has no risk, but subjects you to the vagaries of asset markets. You can pick your own price, but will anyone be willing to trade at that price? You can choose a price you know someone is willing to trade at, but will you have to take a significant cut to make your trade quickly?
As market volume increases, though, the difference between the two options will probably begin to disappear (and no one will likely bother with option 1 at all).
That makes sense. Something I've been wondering for a while and didn't know exactly how it worked. Maybe you could do a post for newbies that shows exactly how a post is paid out. Like if it says $100 for the original blog and a few different comments have dollar values too. That might be helpful to some people. Especially since you have made a bite sized video that anyone can quickly watch and understand.
That is a good topic; unfortunately, I don't understand it that well. Perhaps it would be good for me to dig into the code and see exactly how it works, then elucidate it for others. :)