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RE: Buying SBD with fiat a good idea?
Sure, but the conversion doesn't necessarily give you $1 worth of Steem. The conversion happens over a time period of 3.5 days, using the witness price feeds, and the actual amount can be less than $1 worth of Steem if the price has continued to drop during that time. It can also be more, but it's likely biased to the downside in a bear market.
The price of STEEM has to drop below 50 cents for that to happen. Can that happen in 3,5 days....I guess so when it's really volatile.....it can also fly up (but in that case, I'll be happy anyway).
Nothing is 100% certain but in general I don't think it's a bad buy.
I think on the markets SBD will trade for around $1 for now. If it goes to 60 cents....it be a steal.
You get less than $1 from a Steem Dollar conversion if the final price of Steem after the 3.5 days is below the median price of Steem during the 3.5 days. It doesn't have to drop below a specific amount.
I will be buying up SBD as they go below $1, but I don't think it's a risk-free trade.