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RE: Please Who Can Explain What Happened
Unfortunately, when the price of SBD are too high, converting is not a good option. Some witnesses put in price biases which impact the conversion process but also increase the amount of SBD being created to (in theory) bring some downward pressure on the SBD price. Right now they are trading on Bittrex for over $12!
There is no price bias in effect. The problem is simply that the conversion option is inappropriate to use whenever SBD is worth more than one dollar because it still only converts into one dollar of STEEM. So you lose all of the premium. Don't use it. Trade your SBD for STEEM using the internal market or sell them on an external exchange. This is pretty much the better option the rest of the time for most people anyway (otherwise you unnecessarily waiting 3.5 days and unnecessarily gambling on the price of STEEM in the mean time). Bottom line: Just don't use the convert option unless you are an expert and know exactly what you are doing.
I agree and think this should be made clear in the interface. I just mentioned that to @TimCliff as well.
Currently, three of the top 20 witnesses are advertising a price bias, but yes, it seems it's not currently in place. If it was, people would probably be even more frustrated by the results of their conversion. Could that frustration be a good thing and force them to get educated about it next time? Maybe... but I'm doubtful. There's already a "loss" (at least perception-wise) going on right now, and many still don't understand what the convert function does.
Good to see that the interface has been changed. You guys are very quick. Thank you @lukestokes
Good tip :)
I was just reading up about the differences in SBD, STEEM and SP and you guys have made it a bit more understandable. Will still away from any and all convert options for a long time :p
so in short that is a huge loss
Unfortunately, yes. When SBD is overpriced, they should be sold on the market as explained in my recent post. Did they understand the convert function before using it? I hope we can make that more clear in the future.
he was owing me steem so i told him to convert his sbd to steem to pay exactly the amount he owes me. he does not know much about the platform and i never knew he was going to use that option. i should have told him sell. i guess it is my fault that both of us are at a loss.
well the deed is done and there is no point brooding over broken eggs. Thank you for the help sir
Really sry for you and your friend.
Im giving you a full upvote too, even if my vote is not as powerful as the one of our teacher.
thank you bro. your well wishes is enough for me
Very sorry to hear that. Here's another full upvote to at least get something out of it. Now you have a story to tell to help educate others.
Wow, you continue to amaze me sir, you could have ignored, buy you instead decided to help.
We all benefit if we help each other. That's how we create a world we all want to live in.
Really i appreciate. Thank you very much. I just sent a broadcast message on my whatsapp groups and telegram. I want to make sure people do not make the same mistake. Thank you very much.
You are so generous @lukestokes
Steemit community continues to grow up since whales like you help minnows like to come out of anything and everything.
Have a good day!
Thanks a lot for the explaination.
It could have happened to me too!
I notice there is always this one person always on the top of the ask and bid with $10 always skimming the little bit of difference between the ask and bid. Does anyone know if this is a market maker working for steemit, a bot trader, or very very fast person?