As the market goes down so does the circulating supply of HBD and the support levels.
The debt limit is hard coded, everyone knows the risks upfront, and users adjust there positions in time!
When prices goes up, HBD supply expands again.
Noticed a few big accounts, mainly @mika converting/burning a lot of hbd into Hive recently, wonder who else is doing it and if they are betting on Hive not going much lower than this.
Here are the top 10 finished conversions in June , excluding the stabilizer
| owner | HBD |
|---|---|
| mika | 130,000 |
| seed-treasury | 16,530 |
| funnyman | 10,707 |
| ecency | 6,248 |
| peakd | 4,000 |
| cedricguillas | 3,235 |
| steembasicincome | 2,611 |
| jelly13 | 2,000 |
| rubymooney | 1,500 |
| jeyf123 | 1,009 |
Can you determine how profitable those conversions were over buying on the open market?
If I'm not mistaken the internal market maintains hbd very closely to 1usd.
Only on the external markets is it possible to arbitrage.
Maybe price at starting the conversion versus what actually paid out?
This is the difference between the price of hive when conversion started (theoretical instant sell price) and the 3.5 average.
Each conversion is different story ... almost like trading ....
I guess the blockchain doesn't track external prices to pull the prices at the time the conversion starts and the time it completes?
I'm just looking for broad numbers to see how people do converting compared to having bought on the market.
The blockchain do track prices as a 3.5 days average.
Its simple ... if the HIVE price of the conversion is lower than the one when it started, then it is better.
When you start converting this is the bet you put in and you will only know after it is finished.
In most cases if the price didnt fluctuate a lot, the differences are small
That is what my napkin was saying.
Burning the hbd is the only difference.
With the stabilizer running it is difficult to take advantage of a low hbd price.