RE: CONVERSION ROLLBACK!
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The one thing that you have to remember when converting Hive to HBD is that the only thing that matters is what is the price that you pay at the end of the process.
That price will be the median (not the average) feed price for the last 3.5 days plus five percent.
In order to minimize the risk during a conversion, the price of HBD on the open market has to be at least 1.10. You could risk it if the HBD price is between 1.05 and 1.10 but, anything below that is losing by default because of the five percent fee.
If the median feed price is higher than the one on the open market by more than five percent then you profit, otherwise, you lose in the end.
The price that you see at the start of a conversion is irrelevant. At this phase of the process, the blockchain just makes sure that you have more than double the collateral needed to cover the cost of the loan.
Mean, median, and mode are all averages.
Not if you expect the price of hive to go up.
But this may be an extreme outlier and regular longs on MEXC are smarter.
This is an EXTREMELY important point that took me a while to understand.
We can think of it as a 3.5 day futures market with a forced sale at the end.
More specifically they are measures of central tendency. However, it is important to not just think that you can just interchange the terms. Since the way to calculate them is different they can yield very different values depending on the shape of the data distribution.
The blockchain uses the median, not the mean which is what people refer to when they use the word average. I just want to make sure that the readers do not get confused.
You are correct. If the Hive market price has an upward trend it is less risky to start a conversion. But the price has to be the right one to start with. Otherwise, you are just hoping that the market will be in your favor in the end. There is a risk regardless but starting from a losing position is not my cup of tea.
All good distinctions to make to be sure.
Thanks for the addition.