I assume that we are talking about the SBD "convert" process (i.e. the redemption of SBD debt for Steem using the convert functionality) rather than exchanging SBD for Steem on an exchange.
A circular process of SBD conversion as detailed below could add downward pressure on the price of Steem:
Stage 2 would increase the supply of Steem on exchanges which could reduce the price according to the laws of supply and demand.
However the volume of such SBD conversions is low, since the convert function has been removed from Steemit and so is used by few people. As such I think the impact of this process is small.
Thus in theory it is possible, but I think any impact is likely to be small.
No...... it will not worsen the steem price further and neither it has a big impact, the reason is, SBD although being a separate cryptocurrency, its economy is composite to the steem ecosystem, so whatever sbd token you are seeing, that is virtually staked with steem tokens.
The real problem is something different, the number one being negative sentiment from Bitcoin and secondly the whales are selling their steem and that is why it is facing downward pressure.
Thank you and Have a great day.
Converting SBD into STEEM = Sell SBD and Buy STEEM. It will make STEEM price better. But, need more buy order to realize that, and this time FOMO's always sell everything they hold.
I don't think converting sbd to steem would worsen steem price. Converting sbd to steem will make you earn more steem since the price of sbd is like double that of steem that is why sbd has been reduced in reward pay out. Buying steem with sbd is supposed to make steem price rise because it means that there's demand for it. Though it also depends on how much steem is being demanded
Honestly speaking its a question of economics. Keeping aside the technical aspects of ratios calculated for destroying SBDs lets consider an example of 10 houses available for purchase to a single seller. He is going to negotiate it hard to a last rupee to get the best deal. Since all ten sellers will have to sell the house, they would offer the revise the rates lower. This in turn would affect the market rate.
Same logic applies to steem market. When theSBDs are converted to steem, availability or supply os steem is more than buyers and the desparate sellers would look to monetize any offer for their coins. In nutshell, when supply of steem would increase, it would lead to lowering the market prices