Have cryptos entered into a BEAR market?
Yesterday I wrote an article and shared my thoughts about the recent sell-off in the cryptos and as I expected the sell-off continued. You can check that article HERE.
Surprise!
This morning I woke up to a lot of surprises and one of them was that Steem is down 8% while SBD is up 28%. The price of Steem in SBD in the internal market has dropped from approximately 1.520 to 1.200!
SBD is worth more at poloniex!
More importantly, according to Poloniex, Steem is approximately 0.888 SBD! Yesterday, Steem was about 1.22 SBD at Poloniex. However, @poloniex has still temporarily disabled SBD and Steem deposits. Does anyone know why?
SBD: a safe haven during a crypto-meltdown?
Having said that, this is a great lesson for those who have been paying attention to these price actions. It is now quite obvious that when Steem goes down, SBD is likely to go up! Now why is that?
Why would SBD rally though?
Because SBD is supposed to be pegged to the USD but pegging never really works so if I had Steem and I thought Steem is going to have a big correction, I would most likely exchange my Steem to SBD and hold SBDs until the correction is finished and then I would convert back to Steem. Not only that, many might do this with other cryptos such as bitcoin!
But why would they do that?
Simply because exchanging it to USD would probably cause them to pay taxes whereas exchanging it to SBD wouldn't and they can still remain anonymous. Higher demand for SBD during a sell-off in major cryptocurrencies is ultimately the main reason behind SBD's rally while every other cryptocurrency is tumbling!
Let's top it all off...
As a dear Steemian @hilarski wrote below, people buy SBD as a hedge and they don't have to take their Crypto off the exchange. It is pegged to $1 USD on the way down but nothing stops it from going up. If SBD ever drops below $1 USD it will recover pretty quick.
Don't forget to leave a comment!
Let me know what you think guys and if you like my thoughts, and agree with me, make sure you share this information with your friends. :]
Don't forget to UPVOTE, COMMENT, and/or RESTEEM!
FOLLOW ME ⇿ @msg768
UPVOTE, COMMENT, and/or RESTEEM!
FOLLOW ME ⇿ @msg768
People buy SBD as a hedge and they don't have to take their Crypto off the exchange. It is pegged to $1 USD on the way down but nothing stops it from going up. If SBD ever drops below $1 USD it will recover pretty quick.
Exactly! Thank you very much for reading and commenting! It's an honor and I appreciate it :]
Makes sense haha, thanks @hilarski I'm following you for more Yoda crypto wisdom lol
Makes a lot of sense...you speaking my language lol
Thanks for the insight
Was a great day to sell SBD if like me was holding for a rise to buy more steem so was awesome steem was down and SDB was up
I still haven't traded mine because there's a great difference between the price here in the internal market and other exchange centers like bittrex as opposed to poloniex which is currently not accepting SBD or Steem deposits. How much did you convert? Did you do it here in the internal market or did you do it through some other means?
I only converted 12 SBD but i bought steem at .0064 and now selling and buying on dips to make more. also doing this on bittriex.
You bought steem at .0064? That's less than a cent! Do you mean 64c?
.00064 btc my bad
Gotcha! :]
very informative post - much appreciated - Upvoted and following!
Thanks mate :]
As a new steemer, I'm encouraged to see steem at a lower price, get a better bargain buying in. Now on to the slow but steady upward march. @ironshield
Defiinitely! Me too :]
Great post, great explanation! I'm sorry I'm so low in voting power at the moment, I did upvote, but will not give you so much.. it deserves a high reward! Keep up the good work! I'm a fan of your blogs!
Don't worry I'm on the same boat but votes helps to give this guy a good reputation.
Thanks! :]
Still confusing but I understand...thumps up
Read the first comment too :]
Great post @msg768 I am now following you, love the insight. Thanks!
Steem is holding nicely still in comparison to this shit today lol
Thank you! My pleasure :]
Tax evasion keeps the world turning.
:]
So if Steem is down 8% and Steem dollars is way up as your article suggests, wouldn't it be a good time to invest those steem dollars into steem power???????? Anyone want to comment?
It depends whether you think this is the bottom or whether you think there's more sell-off coming and the bottom is yet to come! I'm willing to wait a bit more :]
Thanks for explaining this as I am still new to this and am learning.
So it mean investment time in steem
I've seen this a few weeks ago. On a Friday night (Europe) almost all currencies were in the red, only to be up again the next day. Bought some that time, only small amounts, but doubled, tripled or even quadrupled my money within the next two weeks! So even with small investments I managed to come out on top.
Yeah I bet there are more coins out there that haven't even become mainstream yet. I've been thinking of creating my own crypto too! LOL :]]]
well, you could always give it a go if you know what you're doing...I for one wouldn't even know where to start. After dogecoin maybe a kittiecoin? I don't know...
LOL!!! :]]]
I personally think there's still more downside to come. The current bounce is a cat bounce! :]
We'll see what happens. Some crazy stuff going on anyway. In the beginning I tried to keep track of it all, but soon enough gave up on that. And then there are coins no one's ever heard of or aren't doing anything at all that I've seen go up by 400% in a day! So in order to keep it simple and not to lose my mind I like to play it on the safe side for a while...Steem and SBD being quite 'safe' at the moment :)
This is similar to crypto exchanges, where when BTC starts to drop, the other alt coins go up as people transfer from one to the other. It is a hedge and also a great way to play the changes in btc/ alt coin pair rates.
COOL :] By alt coins, do you mean like alternative coins or ... ?
Sorry, I got lazy. Other cryptos. We do really need a more descriptive term for them. They are not limited to currency, and they are not just an alternative, they are the future.
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