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RE: How to Buy STEEM on the Internal Market with SBD

in #steemit6 years ago (edited)

Purchasing directly I ended up with 66.564 SP. Going the SBD > STM >SP route, I ended up with 64.024 SP.

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Here is my own simple calc (in my "crypto" accounting spreadsheet):

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[Tech Note: I have an API link to CoinMarketCap for STM and SBD, then calc SP ...]

Having done this for the first time, what I don't know is if there is any sort of time lag in powering up from STM to SP, i.e. it would somehow change in time. From what I could tell from my wallet transaction (see above), there is none.

Is that your understanding?

P.S. While waiting for your response, I was away and came back. Just ran a quick update on my calc:

Wow!! With the downturn in the market today, there must be a LOT of people buying SP!! But, back to the point of my comment, we now see SP is clearly of greater value than STM. On "Powering Up," is the conversion from STM to SP 1:1? If so, then I could now see how the SBD>STM>SP route might be worth pursuing.

As coincidence would have it (Murphy's Law?! 😊), perhaps I just chose to run my little "experiment" at the wrong time.

Looking forward to hearing your further analysis, as your time permits @paulag.

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lol I was in bed, I live in Ireland.

SMTs will not always be 1:1. That will depend on how the SMTs are valued, but the exchange will change to all this when SMTs does happen. I think they are talking Q4 for that.

since your efforts the prices have changed again. SBD is now only 1.06 :-( . If it goes below $1, we have an internal system that backs it to $1 so the internal market will never go below this. I wish I had cash to buy Steem now.

The steemit internal market is all automatic, the pricing updates from the feeds supplied by the witnesses and the matching of orders is automatic, so when there are large price changes such as today, it will also depened on the order books within the internal market so there are some factors at play that could cause the difference. You must also remember that coinmarketcap uses an average of all exchanges listed, and the price on coinmarketcap may be different to the exchange too. I know there was a big difference at the start of the month because on one of the exchanges SBD went way up compared to others.

you might find this useful
http://steemcommunity.org/steemit-internal-market-visualization

Good morning (here anyway) @paulag! 😊 Fascinating "new world" we live in, with our Steem Community making the world so much "smaller" ...

SMTs? I thought I had seen reference to that before, so looked it up - Smart Media Tokens? Hmmm. Not sure I understand the tie-in between this reference and "powering up" from STM to SP. Must be related, as you indicate here, to the overall structure of the internal Steem "market forces" ...

Thank you for the link to your excellent work on the Steem Community. Very nicely done! 👍

And yet another new Steem blockchain interface of which I was previously unaware ... Wow!! So much to learn about it "in here" ...

I'll close going back to the central point of my writing to begin with. Before I called it a night last night, I executed the exact same trade again, while "the window of opportunity" was open. Or least maybe it was open (it changed fast and closed the "gap" between STM and SP ...).

Bottom line: Once again, I ended up with less SP going through all the trouble of the SBD > STM > SP route rather than simply using BlockTrades to exchange BTC > SP directly. Unless and until I can find some "advanced" detail somewhere about how to pull this off successfully, I will not do that again. Losing proposition ...

Have a great rest of your day in Ireland @paulag! Your response 100% upvoted.

Steemin’ along and on the move ... Posted using Partiko Android