Should one convert SBDs or buy Steem from the market?


The markets have been going down for a while and I woke up to that I should be buying some STEEM with my SBDs.

I know that conversion is a process taking place on the blockchain (though not available at interface at the moment), which gives you exactly 1$ worth of Steem based on the average price of it during the 3.5 day conversion process.

Except it doesn't.

Because there is some haircutting rule when the dept level exceeds 10%, which means the conversion doesn't give an actual dollar worth of Steem.

So, if there's someone wiser than me, I'd like to know if I should convert my SBDs or just buy Steem from the market.

Which one gives you more?

Is there a risk with conversion?

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This is a screenshot from the Steem info page on

When "Internal Steem Price" is higher than "Internal Median Price," convert. When it's lower, buy.

When the median price gets closer to the actual Steem price then it becomes more complicated, but at the moment you can pretty much count on the median price not going up during your conversion.


Ah, I see. So it's a good time to convert. One more question: where/how can I do the actual conversion?

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The easiest way is the Balances window on Steemworld.


Ok, thank you!

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My convert gave me like SBD to Steem at a rate where SBD was treated as worth $0.70. So in theory buying SBD at best gives you an 8 cent advantage per SBD you buy. But the reason it gives this advantage is because if the price of steem immediately plummets when you go to convert, you run the 3.5 day risk. In the past, when conversions worked correctly, SBD would hold 90 cents or more.

So unless you can predict the market ahead of time, it's probably not worth doing SBD convert.


Well, I already started the conversion for a small amount. Let's see how it turns out.

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I'm not wiser than you (on this topic :D ), I just came here to brag to you that I found a working bitcoin atm from Tampere and immediately stuffed my euros in it that were hanging around in my wallet. And I exchanged that to Steem and Steem power.

A Christmas present for meeeeeeeeee!!! :D


Haha, niiiice! :D Better have them coins as Steem rather than laying at your pocket.

I've been converting small quantities of SBD from time to time...
It is true that is giving you more than going through the market but I found that perhaps was not so much as I was expected...
I don't think there is any risk while using conversion... additionally, there is another benefit on using the conversion method and it is that you are reducing the available quantity of SBD in circulation, so, in some part you are promoting the scarcity of the coin...which is good I thought...


Yeah, collectively it is better to get rid of the SBD. Just started a conversion myself.

So you mean the internal market is not it working for sbd/steem conversion ?


Exchange in the internal market and conversion are different processes; in the market you just exchange SBD and STEEM, but with converting the SBD is destroyed. Conversion cannot be done via, but with some other interface that I actually don't know.

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