Power-Down Arbitrage Profit
When the big whales Power Down, that means that their Steem Power will get converted into Steem in a few days. This could cause a temporary price increase of Steem that you can profit from by buying before they do.
Powering Down takes a few days to complete, but whenever a big whale or many small whales are due to Power Down the same day there is a profit opportunity.
Use this tool: http://steemdown.com
You will see there the big whales, when they power down, and how much time there is left until they do. If there are many whales that power down in 1 day, then the price of Steem could go up that day.
If you buy Steem 1 day before there is an opportunity to arbitrage this, price goes up, you convert to Steem Dollar, and enjoy some profits.
If the whales power down and then sell that Steem for Bitcoin (then USD presumably) - surely the price will go down on those days, not go up.
Wouldn't it make more sense to buy Steem 'just after' they power down - while the price is low?
If they sell, but they might not sell, they might just put their money in Steem Dollars.
There is opportunity there too, my next article will talk about SD, stay tuned!
After they sell, it's random, you dont have any useful information after it happens, you have to do it before.
isn't it a year before its converted to a steem?
2 yeare for complete conversion, but you get credited every week. Still if many whales power down the same time, that can impact the market.
This is the exact opposite of what actually happens.
Wouldn't that inflate the both SteemDollars AND Steem? You would need to make sure you sell right before the market goes on a downtrend.