About two weeks ago, I wrote a post in which I wondered what would happen if the price of SBD would go below 1 USD.
And well .. it happened.
As the time of writing - SBD trades on Bittrex for around 0.99 USD.
While the difference to 1 USD currently is very small, I can see the bear market continuing and the price to drop even more.
Now, in contrast the price of STEEM is falling as well.
Upside of SBD
The great thing about SBD is, that STEEM has an internal smart contract which allows anyone to convert 1 SBD for STEEM worth 1 USD.
Which means:
No matter how low the external SBD exchange price is - it could even be 0.5$. SBD always has a value of 1 USD internally.
And you could even make a margin profit, if you'd buy SBD below 1 USD and convert it to STEEM.
SBD to STEEM conversion
Now, the conversion takes 3.5 days and the 3.5 average STEEM price is taken. (You can see that price at: https://smartsteem.com/buy - internal STEEM price.)
Additionally, the conversion is currently not enabled on Steemit.com - but it can still be used via code.
steem-js
steem.broadcast.convert(wif, owner, requestid, amount, function(err, result) {
console.log(err, result);
});
dsteem
https://jnordberg.github.io/dsteem/interfaces/convertoperation.html
Don't sell SBD if below 1 USD
Due to the conversion - SBD is a lot more valuable than STEEM in the bear market - as the value of SBD can't go below 1 USD.
And because of that - you shouldn't sell your SBD except through conversion as long as SBD is well under 1 USD.
The 0.99 USD value right now - wouldn't be enough for me to convert - I would simply hold it, but if SBD were to be at 0.8 USD or 0.9 USD - I would def. convert it instead of selling.
100% SP Powerup
When you create a post - you're able to decide between getting rewards 50% in SBD and 50% SP or 100% SP.
Now, the thing is - when you choose the 50/50 option currently, you're getting about 19.2% SBD, 30.8% STEEM, 50% SP and the current trend is towards 0% SBD and 50% STEEM. (Take a look at: https://smartsteem.com/buy - at the bottom of that page are the current payout percentages)
So it doesn't really matter right now, if you choose the 50/50 option or 100% SP.
SBD APR
On top of all that, SBD also has an APR if SBD is hold in savings - which has the goal of reducing the SBD in the free-market and thus increasing its price. However, this APR number is currently at 0% and is changed by witnesses.
As I'm a witness myself - I'd be interested what my fellow witnesses think about this.
When should we increase the APR % and how high?
Well and that's all I currently know about SBD. I hope you learned something out of this post.
Best of luck in these downward times,
Wolf
I am a programming illiterate. Can you give a tutorial how to use this convert feature via code?
I just made a project so that "normal" users can use the convert function, too.
https://steemit.com/utopian-io/@mwfiae/new-project-sbd-converter
Big thanks to @therealwolf: without you I wouldn't have known about this operation :)
That's great Sir, hope to spread it to more people
I think that's a good idea. Download my wallet and read up on Beem. Check the source code. The Python version is functional but console mode only. They are in my blog https://steemit.com/boost/@leprechaun/steemboat-development-looking-for-other-marketers-coders-and-artists
Good information right there therealwolf.
This price fall however should not worry us, because it is soon rising and high.
How do you do the 1 to 1 conversion?
Great info.. Thanks @therealwolf for sharing SBD insights...
I am bearish for the other cryptos but I am optimistic that SBD will not fall much below the peg. It did not drop below 1 on coinmarketcap. It didn't even hit $1 on coinmarketcap. https://coinmarketcap.com/currencies/steem-dollars/#charts
Me just hold my sbd waiting a price like 1 sbd = 20 usd.
Haha, thank God I am not the only one who is doing that, I am also stacking more SBD and waiting for SBD price at least 10$ per SBD, I know we gonna go there, the main key is the patience. Stay strong brotha!
Thank you for elaborating these aspects.
We should wait and see how the sbd prices move in the next couple of days but if it stays around 1$, let's say 0.9 to 1.1, the conversion should be re-enabled for everyone on the site.
Hopefully this time it stays in the peg, because I still believe that keeping sbd is good for the long term of steem, especially for new businesses looking to get established on the platform? what's your stance on the whole remove sbd thing some people around here have going on?
I was wondering how this would all work out now. Thanks for the write up.
delete
SBD is used for promoted posts!
Buy ebooks at Steemfiles.com. https://steemit.com/steem/@steemfiles/steemfiles-service-announcement-for-june-22-2018
That's a good news for those who wanna buy some more SBD. Cause eventually it's gonna rise high. Keep stacking those SBD ;)
Thank you for your great insight.
I'm inclined to think that holding SBD will add value to it since there will be more SBD in existence. I'm just hodling everything for now. I'm actually not worried at all. I think can be good and things will balance out anyway in due course.
Thanks for the info @therealwolf I don’t understand why it’s possible to see a SBD over a dollar as it supposed to be pegged on USD ...
thanks for this information.> VERY useful!
Im curious about what you think.. if SBD supply is going down as the SBD rewards are so low would this not cause the price to want to rise as supply is low ?
That's the idea of the smart contract designer.
Steemit is Tanking , and Tanking and ... oh blame bitcoin https://steemit.com/steemit/@vaerospace/steemit-is-tanking
Don't worry there will still be some gold around....
This is greatly helpful in bearish times like this
The only good thing here is SBD finally can be his true self by pegging to $1 USD. LOL
I think everything will be ok, we just have to hope for the best and do everything in our power to make it rise again. I've writen this post about adding steem dollar to binance and I think it's important for all the community. I hope for your support.
https://steemit.com/steem/@buggedout/impending-steem-dollar-purge-the-1-key-indicator-to-watch#@geekpowered/re-buggedout-impending-steem-dollar-purge-the-1-key-indicator-to-watch-20180625t084607628z
i know , can you suggest about bull run and when market will recover ?
i have spent more than $10000 in cryptocurrency..
There is no reason to sell, When SBD Down..
I get There have money game playing on SBD...The investor take back their money
You could always deposit your SBD into my bank for 6% APR.
Great info, and easy to understand article, thank you sometimes people make it so complicated.
Price of Steem is low = buy.
-Truce
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Now @allasyummyfood will stop posting. At least we won´t have to see her saggy tits.
Ha you and all the big whales know that the SBD peg is a lie.
If BTC or STEEM continue to go down in a big way the peg breaks.
We are at %4.2 SBD circulation vs marketcap now. After 10% conversion amount starts to degrade.
By 20% debt ratio converting an SBD will only get you $0.50 worth.
Just going to sit back and watch the sheep get fleeced.
You shouldn't assume.
And yes - that's how the debt rate works. If STEEM markep cap continues to rise, the debt will sink again.