Yes, you would be putting downward (sell) pressure on SBDs, helping to push prices back down towards the $1 peg. Right now, everyone acquiring SBDs should probably be doing this.
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Yes, you would be putting downward (sell) pressure on SBDs, helping to push prices back down towards the $1 peg. Right now, everyone acquiring SBDs should probably be doing this.
Right, guess I just misunderstood what you meant by your next two sentences:
So what you were actually saying here was the the conversion/trade itself would beneficial and doing it via exchange would make more direct economic sense for the person making the trade. I read it completely different, as "try not to convert directly, because selling it for a higher price on the exchange will be better for the currencies". =)
Well, you certainly don't want to use the conversion function. But selling it on the exchanges at a higher price is good. It's good for your wallet and it's good to get those SBDs out into circulation.
Just checking to see that I'm following here: For my own personal economic reasons, or because it's not good for the currencies? The way it looks to me, it would be good for the currencies to take the bid or lower on SBD, but maybe that's not at all what happens in conversion.
Both. When you use "convert," you are destroying SBDs. This decreases the supply, which can put upward pressure on prices.
When you use the "convert" function right now, you're losing out on the premium that SBDs currently have. You'll only get approximately $1.00 of STEEM even though SBDs are trading closer to $2.00.
When you sell those SBDs instead, you're likely putting downward pressure on prices. And if you're buying STEEM, you're increasing demand for them and likely putting upward pressure on prices.
Got it.... Maybe there needs to be a change to the user interface then. I can imagine there's a lot of conversions taking place right now considering everyone seems so bullish.