About two weeks ago, I wrote a post in which I wondered what would happen if the price of SBD would go below 1 USD.
And well .. it happened.
As the time of writing - SBD trades on Bittrex for around 0.99 USD.
While the difference to 1 USD currently is very small, I can see the bear market continuing and the price to drop even more.
Now, in contrast the price of STEEM is falling as well.
The great thing about SBD is, that STEEM has an internal smart contract which allows anyone to convert 1 SBD for STEEM worth 1 USD.
Which means:
No matter how low the external SBD exchange price is - it could even be 0.5$. SBD always has a value of 1 USD internally.
And you could even make a margin profit, if you'd buy SBD below 1 USD and convert it to STEEM.
Now, the conversion takes 3.5 days and the 3.5 average STEEM price is taken. (You can see that price at: https://smartsteem.com/buy - internal STEEM price.)
Additionally, the conversion is currently not enabled on Steemit.com - but it can still be used via code.
steem-js
steem.broadcast.convert(wif, owner, requestid, amount, function(err, result) {
console.log(err, result);
});
dsteem
https://jnordberg.github.io/dsteem/interfaces/convertoperation.html
Due to the conversion - SBD is a lot more valuable than STEEM in the bear market - as the value of SBD can't go below 1 USD.
And because of that - you shouldn't sell your SBD except through conversion as long as SBD is well under 1 USD.
The 0.99 USD value right now - wouldn't be enough for me to convert - I would simply hold it, but if SBD were to be at 0.8 USD or 0.9 USD - I would def. convert it instead of selling.
When you create a post - you're able to decide between getting rewards 50% in SBD and 50% SP or 100% SP.
Now, the thing is - when you choose the 50/50 option currently, you're getting about 19.2% SBD, 30.8% STEEM, 50% SP and the current trend is towards 0% SBD and 50% STEEM. (Take a look at: https://smartsteem.com/buy - at the bottom of that page are the current payout percentages)
So it doesn't really matter right now, if you choose the 50/50 option or 100% SP.
On top of all that, SBD also has an APR if SBD is hold in savings - which has the goal of reducing the SBD in the free-market and thus increasing its price. However, this APR number is currently at 0% and is changed by witnesses.
As I'm a witness myself - I'd be interested what my fellow witnesses think about this.
When should we increase the APR % and how high?
Well and that's all I currently know about SBD. I hope you learned something out of this post.
Best of luck in these downward times,
Wolf