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RE: HELP!!! Need to solve a Steemit SBD conversion mystery.
Actually the explanation is very simple:
- The steem blockchain always considers that one SBD equals one USD.
- It looks like at the time of the conversion the price of Steem was around 1.59 (60 divided by 37.641).
- More accurately it's the median of value of the Steem price feed that the witnesses feed to the blockchain.
You should never convert SBD to Steem if the price of SBD is above 1 USD. It's better just to sell it on the internal market.
Really? Wow. Can you show me an official reference stating this? I guess I'll have to re-read the white paper.
The white paper does not say it explicitly but on page 11 it says:
How is this done? There is only one price that is fed to the blockchain...the price of Steem. So the blockchain does not have a way of "knowing" what the market price of a SBD is. The code only takes into consideration the steem price feeds and there is a reason for it.
Let's assume a wild scenario:
If the conversion of all Steem Dollars were to happen at the market price there wouldn't be enough steem to make the conversion.
This makes sense as a possible explanation, but it must be explicitly stated somewhere. I’ll keep digging.