The one week conversion is a bit of a head scratcher. Never made sense for me... It's either the Internal Market or the Exchanges.
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The one week conversion is a bit of a head scratcher. Never made sense for me... It's either the Internal Market or the Exchanges.
the one week conversion is very useful if the steem dollar price is significantly below 1 dollar like it is now. In this case you can buy steem dollars for example 80 cents. and then convert them to steem worth of 1 dollar in one week. sell this steem and then buy new steem dollars etc. If you are luck you make 20% with this in one week. the only problem is, that it takes the average steem price of one week. so if the steem price goes down, the average one week steem price is higher then the current steem price and you will therefore get less steem for your steem dollars. I wish also, that the one week conversion time is drastically reduced, so that 1 steem dollar is worth one dollar and not 80 cents....
You are definitely right. I believe it considers the median price as quoted by the witnesses. But this is quite a risky option, and might fluctuate significantly.
thats true, its a little bit risky, but not fully. currently you can buy steem dolalrs for 80 cents. Thats 1/0.8 = 1.25
So you can make up to 25% win. In average the steem inflation per day is round about 1%, so lets say in a week 10%. So in average the price should drop 10% per week if the steem market cap stays the same. So the week average is 5% steem price drop. So in average with currently a steem dollar 80 cents you make 25%-5% = 20% win per week. Thats not too bad :)