What I would like to know is if converting hive to hbd is still profitable.
I'm leaning no, as I have to take .55 to convert but to replace that hive I have to pay .67 on the internal market?
That seems a losing proposition, to me.
I was in as long as the spread was the other way, but once the internal market is higher than what the convert feature gives it seems a loss.
Can you clarify that some?
You are viewing a single comment's thread from:
Yeah so the problem here is that as the price of Hive changes these conversions undergo major slippage. If the 3.5 day average is a lot different than the current price it makes less and less sense to risk a conversion when you can just spot-trade the market instantly.
You can be certain that multiple liquidity providers like BlockTrades use bots to figure all this stuff out automatically. Doing it by hand and thinking you're going to pull one over on the bots is a fool's errand.
It seems to me that irrespective of any manipulations by bots, trading my hive to hbd for a price lower than I can get hive for on the internal market is a fool's game.
It wasn't like that, at first.
I was trading hive for hbd that bought more hive on the internal market than I started with.
That isn't the case for at least the last four days.
Yeah honestly we just need better tools for these things.
Still the Wild West out here.
The initial price that you get on the conversion doesn't matter...kind of. The real price is the one that you get 3.5 days later. Since the conversion process uses the smallest median price for the last 3.5 days it looks like it's not profitable but the only thing that it does is limit the amount of HBD that you receive initially.
What really matters is the difference between the internal market and the median price feed at the end of the process.
Having said that I am a greedy bastard and I am waiting for the price feed to catch up to the external market to get a better price.
Thank you for confirming my belief.
As long as the price you pay for your hbd on the internal market is higher than what you paid in the conversion, you have traded your hive for hbd in return for less hive.
Those numbers should be a whoot to see.
So much carnage, so little math.