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RE: Thoughts on STEEM-Backed Dollars and Holding the Peg
For my own personal economic reasons, or because it's not good for the currencies?
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.