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RE: Steem Price is being pushed down by 1 person! Speculation on why and where it may end up
@williambanks. With conversion you get (about) $1 expected value of STEEM. You do not get literally $1 worth of STEEM, since volatility during the conversion period can work in your favor or against you (I've literally experienced both so I can assure you it works both ways). I think maybe that needs to be communicated better (though mostly my opinion is that the conversion option is unsuitable for most users and should be removed from prominent placement in the UI and left to experts).
I think the point is that if it's a 7-day moving average against STEEM like it is now it will be systemically undervalued due to built in STEEM inflation
@nikolai Yes but only by a few percent (will be more like 1% in the future). That can be accounted for by slightly adjusting the feed rate. I have already been aware of this and would be suggesting to witnesses to make that adjustment if I thought it were relevant. At the current time SBD has been -25% and +50% from par, so these small tracker errors aren't that important.