A Reminder On The Advantages Of Utilizing The Internal SBD Conversion To Your Advantage While The Trading Price Remains Below 1 USD.

The price of SBD was inflated between 30-100% during the first half of the year, but has since returned closer to the price point of 1 dollar.

Many of us likely got spoiled from making almost double what our liquid payout was due to the inflated price of SBD's, the price has been under the 1 dollar price level the majority of the time over the past several weeks. While this is a bummer for active authors and their liquid rewards, the drops in the price of SBD and Steem can actually be used to our advantage. The easiest and most lucrative method of taking advantage of the decline in trading value of SBD, is utilizing the internal conversion offered in the Steem wallet. The internal conversion tool always accounts for SBD's as having the value of 1 dollar of the average weekly value of Steem, so by utilizing this tool an individual is guaranteed to get one dollar worth of Steem at the weekly average price of Steem 3.5 days after their conversion. Currently the weekly average price of Steem is still above 1.5 USD, but the price has experienced a retreat over the past 36 hours so the weekly average will likely drop significantly over the following days. 

While the drop in the average weekly trading value of Steem will lead to a decrease in post payouts and the liquid SBD that authors receive, I believe that it also gives authors the ability to convert their Steem at a point when the average weekly value of Steem is lower. SBD is currently trading at around .91 USD and Steem is currently trading at 1.19 USD, which means that it is a very lucrative time to utilize the conversion tool. The conversion will fill the order exactly 3.5 days after it is placed, which is why I believe that the weekly value of Steem will likely be much lower than it is now. Instead of trading SBD for under 1 dollar, individuals should consider utilizing the internal market or conversion tool to take advantage of the price inefficiency that the recent fall in the price of Bitcoin has caused on the price of Steem. I am a firm believer that the price of Steem will recover shortly after the market begins to 'settle' out, and I intend to convert all of my liquid posting rewards into Steem to take advantage of the temporary price level. 

Utilizing the internal market provides a greater level of liquidity, but it is based upon the trading price of SBD rather than recognizing it as 1 dollar. 

The lower that the price of SBD, the greater advantages and benefits that are likely to be obtained by using the internal conversion tool. The internal market is typically very closely tied to the actual trading price between the trading value of SBD and Steem, but the conversion tool will always recognize SBD as 1 dollar worth of Steem, regardless of the trading level of SBDs. I believe that the current retreat and fall in the price of Steem is rooted in the overall downturn of the market, I have no doubt that prices above the 1.60 USD level are very likely going to return in the near future. While the tactic of holding liquid rewards in Steem does offer individuals a chance to increase their 'exposure', it also may require that an individuals is okay with waiting several weeks before the price reaches a point at which they feel they should sell their liquid holdings. While I believe that the price is likely to pick back up very soon, there is always the slim chance that it could be some time before the cryptocurrency market is able to regain the support it once had.

If the price continues to retreat, it only means that you will be receiving more Steem per SBD upon conversion, and is a fabulous method of increasing exposure to Steem in times like this. As I'm sure many of you know the market has been very volatile recently, and has once again lead to some great investment opportunities for individuals wishing to increase the size of their stake in positions. The cryptocurrency market as a a whole has seen so much attention and investment over the past 6 months that I don't think there is any chance we don't see a continued level of support and investment over the following months. The uncertainty surrounding Bitcoin and it's future have caused a decline in the cryptocurrency market as a whole, but I believe that the market will continue to experience growth and increased investment regardless of what happens with Bitcoin. 

Utilizing the internal conversion tool can likely give individuals earning on the platform a chance to increase the value of their liquid rewards by being able to hold their liquid Steem until the it experiences a price increase. This is an easy and unique opportunity for authors on the Steemit platform to have a chance to increase their exposure to the price level of Steem, and likely help them to be able to increase the value of their holdings before they seek liquidity. A great resources that I use to determine the weekly value of Steem is steemnow, which was created and is maintained by @penguinpablo. The site also features a very convenient vote calculator, which makes this one of my go-to third part sites regarding Steemit and Steem. 

I really hope that you enjoyed this post, and I urge you to leave any questions, input, ect. in the comments below! Thanks for reading!

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