The internal market pegs the Steem dollar at just $1.00, where as when you send it out and sell it on an exchange, you earn whatever the going price is, which allows you the ability to buy more Steem with it.
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That hasn’t been my experience at all. The internal market values SBD’s at much more than a USD. For each one SBD, I’m getting more than one SP.
I think you’ve made some inaccurate assumptions about the internal market. I think you’re thinking of the old “convert to Steem” option that was removed a few months ago.
So, when I use the convert to Steem right here in the platform, it converts it via the going price of the Steem Backed Dollar?
Using the internal market, you’re creating a limit order. Sometimes it converts almost instantly. Sometimes it takes a few minutes. Occasionally, when prices are volatile, it might not go through and you can cancel the order. But this is not the old convert to Steem link that took three days.
Experiment with 0.1 SBD and see if you like it.
That didn't answer my question, the question I had was, does the Steem Backed Dollar convert via it's current market price of Steem in the organic system?
Basically, yes. Another Steemian is selling Steem for SBD.
Try having two windows open. In one, sell 0.1 SBD the way you’ve been doing and see how much Steem you get. In the other sell 0.1 SBD for Steem on the internal market. Do the two trades as close together in time as you can. Compare the results.
I do not use Poloniex or Bitrex so have no clue about them. But I think you’ll be happy with the results because no middle-man exchange is getting a piece of the action.
Here for example is a trade I made on Saturday:
Coinmarketcap.com was showing SBD at $6.67 and Steem at $6.17, a ratio of 1.097
I traded on the internal exchange and got 7.668 Steem for 7 SBD, a ratio of 1.095
There might have been a minute between when I checked coinmarketcap.com and when I made my trade, which could explain the 0.002 discrepancy, but I doubt that the fees for an external exchange would be less than that.
I'll have to try it out.