So this morning I woke up and checked my Steemit wallet to see if my request to convert 60 Steem Dollars to Steem finally went through and guess what?
I was right away disappointed to see that it did, because the 60 Steemdollars I was able to collect after 2 months of writing almost every day converted to frickin 37.641 Steem.
Just look at the screenshot I took to see the conversion:
Do you know what is the price of Steem Dollars today? It's something between 7 and 14 US Dollars depending on the exchange you are using.
And even 4 days ago it was about 3 US Dollars. With a Steem price fluctuating between 1.50 and 2 US Dollars my 60 Steem Dollars should have been converted to at least something around 100 US Dollars or even way more.
I'm not sure which price Steemit.inc is taking as a basis for that convention which is supposed to take 3.5 days. I would have thought they are averaging it out.
But in this case it seems they are not using the market price, instead it seems they are holding to the peg of 1SBD =1US$!
That's ridiculous and not what the market has determined to be the recent price for Steem Dollars!
If I had used Blocktrades to send my SBD somewhere else or transferred it to another Coin Exchange I would have gotten a way better deal.
Bittrex exchanges SBD now for 14 US Dollars. Do you hear, 14 US Dollars!!!
I got 1 !!!!
Even if I had powered up my post rewards 100% automatically I would have gotten more Steem at that time because Steem was below 1 US Dollar.
So everybody please be aware and don't use the Steemit wallet to change your hard-earned Steem Dollars to Steem!!
If you want to get a fair deal at the moment, use Blocktrades to exchange and send or transfer your SBD directly to another coin exchange.
I don't know what happened here but I'm right away disappointed. Can somebody explain about it or has similar experiences?
I was pretty much enjoying my time here on Steemit but my first emotions this morning were switching between being angry and puzzled about that mistery.
After calming down I thought I need to tell everyone how to avoid a bad deal and make the best out of your valuable Steem Dollars.
I hope this post reaches you in time and prevents you from having the same experience.
However, have a great day or a good night everybody. Thank you always for your great support!!
Steem on !
interested in my other posts?
please come over, leave a comment
and 
@maxinpower
Love and Respect!!
I still think what you did is great because you not only get more Steem power but when the price of Steem rises , you get more in return
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No it wasn't great at all because I got LESS Steem Power than intended!!
if I changed my STB on the marketplace or via blocktrades I would have gotten even more Steem Power.
Same if I chose the 100 % upvote for my posts.
Therefore for me it was a loss and not a win at all!!
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There is an internal market where you can get exchange instantly, and set your own price. I'm sorry to hear about your loss:(
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Yeah I figured that too.
But I thought why not use the Steemit wallet function, but it's was a bad idea.
I learned a lesson
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I wrote this several months ago, trying to help people use the internal market so they stop getting screwed by the wallet converter. https://steemit.com/steem/@allprowi/how-to-use-steemit-s-internal-market-and-review-of-whotiewho-using-the-sbd-converter-in-his-wallet edit I just realized it's no longer called the internal market, it's now the currency market.
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The system is built around a stable value for SBDs. They're meant to equal approx 1 USD, and that's what they convert to.
Some people outside of steemit are buying them for more than that.
If people outside of steemit were buying them for 50 cents, would you be happy for steemit to convert them for that price, or do you expect them to only honour the peg as a minimum?
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Of course I wouldn't be happy but where is it stated that Steemit will always convert to the 1 Dollar peg?
If I knew this before than I would have used an external exchange to get the price the market has decided on for the moment.
Wondering if this was stated somewhere, we couldn't figure it out yet
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Its spelled out in the white paper, but it's there in the name.
1 steem backed dollar is 1 dollars worth of steem.
If steem is at 10c, then its 10 steem.
If steem is at $5 then its 0.2 steem.
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So it isn't actually stated in the case the market price is higher
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No. It just states the steemit price, which is where you sold it.
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That's why if the SBD price is higher than 1$ the wallet's converter will give you a bad deal.
Well, I learned my lesson.
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I have been here long enough to know the difference, and I made your same mistake...22 SBD for 13 STEEM, OUCH!!! I feel your pain brother.
@mattclarke wtf is the point of the 3.5 day waiting period if the conversion is going to sit around 1:1 regardless of the market price? I thought the time delay was to account for people trying to dump SBD 'on the spot' at the current rate?
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That is a really nasty pitfall to avoid. I did get lucky in leaning the lesson while very young. This week Im just trading every wee bit of SBD I can earn...as opposed to two weeks ago where I was converting :(
I woke a few others up to it as well, being the big mouth I am
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I believe it's there to stop day trading and panic runs.
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Luckily I read a post warning not to convert using the 3.5 day option. It didn't explain why, but said it was a bum deal and to always use the internal marketplace instead. Now reading these comments on your post I understand why. Seems like the 3.5 day convert is working as intended, but they don't really state well how it works. Let's be honest, few people are going to read the whitepaper, so it needs to state this elsewhere, such as a "warning" message when you click convert.
Anyway, sorry you lost money on this. I hope @kafkanarchy84's post can help you recoup at least some of what you lost.
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Even the Whitepaper doesn't really seem to state this. Well, another lesson learned
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Yeah I was just looking thru the comments on his post and saw that. If it doesn't explicitly state it somewhere, that should be fixed. Well, try to keep a positive attitude. This is all play money until we actually withdraw it. I resteemed his post to spread the word about your situation.
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Thank you.
And be sure I will, more important things to really worry about
Have a good night and a joyful Sunday my friend
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Hi maxinpower, you are right.
The SBD was created to be pegged to 1 USD, if you "convert" then the blockchain will give you an amount of STEEM worth in usd. This is the reason why the price of SBD cannot go under 1 USD.
I know that you are disappointed, but there is a problem with the definition of SBD... I think we need to add the possibility to convert from steem to sbd in order to reduce speculation. why, in this way the SBD will be pegged to USD forever and no that speculation to $10 or $15.
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But where has this been stated before. If I knew I would use an external exchange.
No point in getting Steem right now
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The definition of SBD is in the white paper
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Den Konverter würde ich nicht nutzen.
Wenn du auf dem Steemit Market tauschst, ist das Ergebnis ähnlich wie wenn man zu bittrex sendet, dort in btc wechselt und dannn steem kauft.
Ich habe für ca 11 SBD gerade über 60 Steem gewechselt und man spart sich eine riesen Aktion.
Resteemed :-)
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Danke. Hinterher ist man immer schlauer.
Da habe ich mal ein paae Steem Dollar und dann zockt mich der dumme Converter ab
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Sehr wichtiges Thema, kommt auf meine Wand :-)
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Danke. Kommt später noch einmal auf deutsch
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So is this a chance to buy cheaply?
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Volle 100% und resteemed :-)
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thank you!!!!
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Oh, das tut mir Leid, das ist echt bitter. Da bist du von etwas ausgegangen, was scheinbar so nicht ist. ...
Wie du schon sagtest: Die Lektion ist nun gelernt. Ich habe davon keine Ahnung und mich von einem Vertrauten beraten lassen, da ich ebenfalls auf dem Markt gewechselt habe.
Ich kann deinen Frust sehr gut nachvollziehen und den heutigen Anblick in deinem Wallet :-(
Du wirst dich davon erholen und die Ups und Downs werden weiter gehen so lange wir Strom für unsere Rechner haben. Heads up!
P.S. Hier ein Post, der da durch leitet, ist vielleicht auch für diejenigen interessant, die das hier lesen:
https://steemit.com/sbd/@lukestokes/sbd-is-worth-over-usd12-on-bittrex-right-now-how-to-sell-your-sbd
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Das mit Bittrex weiss ich leider schon seit gestern aber jetzt ist der Drops gelutscht.
Die Welt geht nicht unter, und ich hatte ein Thema fuer meinen Post heute ;)
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Resteemed and upvoted.
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You probably convert sbd to steem. You should have gone to the market.
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@maxinpower, what jon says is true, in your wallet, under SBD, click on Market, not Convert.. Buy Steem from there, you lose a few cents, but it's almost immediate, and you don't risk the chance of the currency fluctuating. Did this a few days ago, after googling online! A much more proven method!
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I Know I should have used the external market, I mentioned this in my post.
I'm just puzzled that Steemit is using the 1 Dollar peg to convert Steem Dollars because the market price is much higher.
It wasnt mentioned anywhere!!
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I just found out that the exchange in the waklet steemit cheaper than in the blocktrade. means many steemians are not aware of this problem. thank you for sharing your information. so it can be an experience also for other steemian.
@maxinpower
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Yes, or use the marketplace function but not the wallet's converter
Thanks for your comment!!
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You are absolutely right, i have experienced like this 'peg' often but i converted 1 or 2 sbd so i could not mind that. Thanks for your 'Alert'
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This is why I have never converted my SBD to Steem. ;-) .
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Blocktrades is working well
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Wow that sucks for you, I wont be using this method for sure, thanks for the warning .
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Extremely new to Steemit. Appreciate you sharing your insight into possible exchange issues.
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@maxinpower thanks for warning, Iwas also thinking of changing it into steempower, but I was not sure about the course. So I just let it in my wallet
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Did you use the convert thing on the wallet or the internal market?
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The converter which takes 3.5 days
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sorry just postet the wrong one. I got this about 8 hours ago. did you made something wrong?
8 hours ago Paid 0.032 SBD for 0.201 STEEM
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Where did you get it? And how did you exchange it?
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hi. ganz normal auf dem steemit market über das wallet
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Aber nicht über den Converter, ich denke mal über Blocktrades.
Converter braucht 3.5 Tage
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weder noch. einfach über dein wallet auf den market place und dort sbd in steem tauschen.
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Alles besser als der Konverter
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Go to market..not conversion..
You can see how much steem you got before you make the deal..
If you want to send your sbd.via exchange...i suggest changelly ....much cheaper
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I already converted via the Steemit converter. That's why I made this post and wrote not to use it to avoid the bad rate and get the best for your SBD
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Nice...
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Whoa! Good thing I was able to read this before my SBD has finished withdrawing from my savings. I was kinda confused whether to cash out or convert it to Steem to Power Up my account. I thought, this was a good time to convert because its gonna give more Steem because SBD is higher. Thank you for this. I’ll wait for more news. Hehe. Hopefully, SBD continues to go up! 🤞🏼
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Steem, is more strong that I tought.
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Thanks for the post
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