When HBD is valued under $1 it is beneficial to the ecosystem to convert your HBD to HIVE, but is it profitable?
When the HBD peg drops below $1, we have the option to convert HBD to Hive. There is always the option to do so, but it only makes sense to do it when the price of HBD is lower than it should be. Converting eliminates the HBD from circulation and if the price of HIVE stays constant during your conversion, you could get some extra HIVE for your HBD as if it was still worth $1. This in turn will help boost the price of HBD back up to where it should be at $1. Remember if HBD is ever above $1 DO NOT convert it or else you would be giving away a token valued higher than $1 for just $1 worth of HIVE.
How to convert
Simply go to your wallet on https://peakd.com/ and go down to your HBD, the drop down arrow will give you the option to convert. The process takes 3.5 days. This gives plenty of time for the markets to fluctuate, so convert at your own risk.
Is it profitable
It depends, if you get lucky you could make some extra HIVE. I decided to try it out with 33 HBD 3.5 days ago. Today my conversion results arrived in my wallet. Below is a screenshot from my blog when I began the conversion a few days back.
I received 6 less HIVE by converting HBD than I would have if I had just quickly swapped for HIVE using https://blocktrades.us/en/. So in this instance it was not a profitable move for me, thankfully the difference was minuscule and I am part of the buff that HBD has recently received. Within the past three days the price of HBD has increased to .82 and HIVE has went up and right back down to where it was sitting around .23.
Did you know that you can convert your HBD?
If the price of HBD were say .50, it could be a wise idea to buy a bunch of HBD from the market and convert it to HIVE right away. I do not think that now is the time to do that, but every day is different. It is wise to stay vigilant.
Thanks for checking out my blog.
I hope you learned something today and if you have more to add please leave a comment. I think that this topic is rarely covered and with HIVE being just over a week old, there is no better time to educate.