Is it true that converting SBD into steem will worsen steem prices on the global market?

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I assume that we are talking about the SBD "convert" process (i.e. the redemption of SBD debt for Steem using the convert functionality) rather than exchanging SBD for Steem on an exchange.

A circular process of SBD conversion as detailed below could add downward pressure on the price of Steem:

1. SBD conversion to Steem using "convert" functionality;
2. Steem exchange for SBD on internal or external market;
3. SBD conversion to Steem using "convert" functionality... and so on.

Stage 2 would increase the supply of Steem on exchanges which could reduce the price according to the laws of supply and demand.

However the volume of such SBD conversions is low, since the convert function has been removed from Steemit and so is used by few people. As such I think the impact of this process is small.

Thus in theory it is possible, but I think any impact is likely to be small.