I was about to write about a profit opportunity as chapter one of “THE ULTIMATE GUIDE TO MAKING MONEY WITH STEEM for non-writers” when I come across this expellant post by 
So for more details just read that post. In short SBD is currently 30% and sometimes even more overpriced. That is to say it sells for 1.30 usd worth of both STEEM in the internal market and 1.30 usd worth of bitcoins on the exchanges. In order not to repeat what was already posted I will concentrate here on:
- How to take advantage of this in practical terms
- Why you should do so. I was surprised to see a lot of replies and up votes were disregarding the opportunity and proposing to hodl… I will try to explain why this does not make sense.
- My take on the reason why this opportunity exist on the first place.
How to take advantage of this in practical terms
So you start with say 1000 SBD. That is same old $1000 US in your pocket. And you want to end up with same stable $1000.
A reasonable approach is to go to bittrex.com or poloniex.com exchanges; trade your 1000 SBD for 1300 worth of btc.
- With the 1000 worth of it to buy USD stable asset [Choices here include 1.actual USD (not my recommendation) 2. Virtual asset stable to USD – like Tether (USDT) available on poloniex.com directly; or bitUSD 3. Or even keep it as BTC (reasonably stable as of late, also spendable in by far in more places than any other crypto currency.
- As for your 300 usd profit? It is totally up to what are your expectations for the future price of different assets… May by keep it in the same asset as the 1000 usd above, maybe you believe STEEM it is headed for the moon? If STEEM is your choice buy STEEM and vested it. Not sure? Put money in several of those options.
Why HOLD in the face of this opportunity makes no sense?
What do you mean hold to the 1000 USD you have if you can sell them for 1300 USD. What is the point? Do you expect them to be 1400 USD tomorrow or next week? If you think so sure hold them and sell at 1.4 per. But other than that you are not holding something that is generally expected to go up in value. So the smart thing to do is to sell for 30% more and keep 1 USD worth of every SBD sold in other stable asset (as explained above) and pocket a profit
Why is SBD worth 1.30 USD?
When I started writing this guide I promised to myself one thing – to be totally honest and to state the facts as I see them. No sugar coating. So here is the first no so flattering truth.
Steem has internal liquidity reward program. It currently awards liquidity providers on the STEEM:SBD market in the neighborhood of 100,000 USD PER DAY! As it stands the whole program is dominated by a single person… to keep its dominance, control over substantial part of the total supply of SBD is essential. To keep his control the said person has to, and can afford with that 100K subsidy , buy SBD for more than $1 a piece… There you have it.
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