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RE: Testing The Steem Dollar Peg

in #steem8 years ago

If the goal was to make a profit, couldn't someone just buy SBD (current .75cents), convert it and then sell the steem off at approx 2$, then take that 1.25 profit and buy more SBD if they're still at a low price?

I'm in it for the long haul, but is the above correct, or does my thinking need an adjustment to get back to correct?

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That's the idea... if the market is undervaluing SBD, we have to start abusing it. The only real risk is a sharp decline in the price of STEEM, which would probably further depress SBD anyway. As I show above, even in a week of a steady downturn in the STEEM price, you can still break even during a conversion.