[QUESTION] Is it possible to convert STEEM to SBD on Steemit.com?
I know I can go to the market and trade STEEM for SBD, but what about converting? The SBD-STEEM conversion option is available, but currently not the other way around. Or maybe I've missed something and that's an option that simply does not exist.
For those who don't know: "converting" is a special operation in Steem where you take STEEM, send it to the network, and the network prints out brand-spanking-new SBD for you that's roughly the same value as the STEEM you sent.
Note: I do not actually want to do this right now, I'm just curious.
You can't "convert" STEEM to SBD.
The reason is that the conversion process serves to peg SBD to USD. Conversion "guarantees" that SBD will be worth at least 1 USD (more precisely 1 USD worth of STEEM).
Also, you talk as though 2-way conversion would somehow be inconsistent with the peg. That doesn't seem true to me. If SBD is overvalued, it would be handy to be able to issue new SBD on demand to lower the price. What am I missing?
I'm not sure if it would be inconsistent. I think the lack of STEEM->SBD conversion is supposed to make SBD scarce. It may also have something to do with stopping people from "harvesting" interest by creating SBD.
The point is, conversion in one direction is necessary for the peg while in the other it isn't. That's why the one exists and the other doesn't.
Yep, that makes sense. Thanks. Your answers are always appreciated!
Ok, good answer. So conversion is one-way, and the only way new SBD is generated is through author rewards and interest? Makes sense. Somewhere I thought I remembered that there was a two-way conversion, but I must have misunderstood.
What are the trusted markets to exchange (from Steem to SBD)?
Can anyone suggest some please..
The safest market is right here on steemit.com! Just go to the menu at the top-right, and select "Currency Market." You can trade Steem and SBD right out of your wallet.
Thanks.
It was useful to me as i'm new here.
You can. Go to the internal market and buy SBD with your steem.
Read my post, that's not what I'm talking about.
This is an trade or manule exchange. Best option I currently know of. Not automated I guess...
Still I don't understand the whole thing. Is SBD on the market more worth than Steem? So it would be the better option to trade SBD, right?
No, you cannot do it at the moment directly from your steemit wallet.
You need to use an exchange, either the internal one or an external one such as Bittrex, BlockTrades or Poloniex.