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RE: Thoughts on STEEM-Backed Dollars and Holding the Peg
While this post cleared up a few concepts that were fuzzy to me it also raised a few questions...
If you are not aware, it is not ideal to be converting your SBDs to STEEM on the internal exchange. You will receive much less STEEM using the conversion function in your wallet than you would selling the SBDs on an exchange, then purchasing STEEM.My understanding (which is questionable as I am fairly new to the cryptoshpere) is that the internal market has a trading price at almost half that of external markets for Steem (SBD to STEEM). Am I being deceived by posts of some bigwigs here?
Secondly, if this were to happen....
Have witnesses set a higher bias, which would create and distribute more SBDs per post payout - a position supported by @bacchist and several witnesses.What would the effects be with a 100% Steem Power post?
I hope my questions are clear and I don't sound like the complete n00b I am.
The listed price on the internal exchange roughly translates to the external exchanges if buying/selling SBDs and STEEM from your wallet, internally. However, the conversion function doesn't give you a premium like you would get on the external exchanges. You're still only getting approximately $1.00 of STEEM, despite the price being near $2.00.
None. When you do a 100% SP post, no SBDs are created. Don't do that. Take the SBDs as long as they are trading at such a high price. It's good for you and selling them is good for trying to maintain the $1.00 peg.
The fog has lifted....thanks for the info @ats-david!
@ats-david
I'm with you on this one cause actually had I not known @timcliff when I read his post about pegging it I was a bit shocked that he's proposing it and I thought - what happened to the free market? Let the market do its move - but knowing @timcliff always have good intent and consistently have shown that - maybe there's something I missed on that too intelligently written post.
As for pegging it - would it not make it almost like of that fiat money? Why peg it? Control? - why worry about the merchants having to keep watching the movement of the market - I thought .. but anyway these are all honest questions - there are many things that I still don't know of - so @timcliff I hope you don't get offended with these questions and enlighten us please. Thank you