PROS AND CONS OF THE HIVE BACKED DOLLAR (HBD)

The Hive Backed Dollar as the stablecoin of the Hive Blockchain is a gem known by many but held in high esteem by few. In this guide, we will look into the pros and cons of HBD.

PROS OF THE HIVE-BACKED DOLLAR.

One of the challenges faced by cryptocurrency investors when it comes to interacting with stable coins is regulatory attacks on stables. Coins that are pegged on a 1:1 ratio with the US Dollar stand the risk of being shut down by regulators. The Hive Backed Dollar is one such stable that has a feature that keeps the regulators away(it is not pegged at 1-1 ratio with USD, its value ranges from $0.95 to $1.05 but stabilized by HBD stabilizer making it possible for 1 HBD to give 1$ Hive). Hodlers of the HBD will not fear waking up to news on regulatory attacks or insufficient Liquidity for the issued HBD coins because the Hive network through Debt Limit makes it possible that the market cap of HBD will be lower than that of Hive by 10%.

Hodl HBD savings gives 10% interest. This is a good way to earn passive rewards with the funds that you intend to keep away from fluctuating nature of cryptocurrency.

Unlike in other stablecoins, the decision on HBD is not taken by a single entity but by selected witnesses, and decisions are made through public voting. ( One of the beauties of the Blockchain).

Conversion of the HBD to Hive or any other Hive token is done on the Hive network, this means that liquidity for the trade won't be a problem.

CONS OF THE HIVE-BACKED DOLLAR.

The HBD is available for purchase mostly in one exchange,
Bittrex and has only one pair BTC. This is a huge challenge for investors who may likely want to buy and hold the stable outside the Hive network.

In conclusion, Hodl the HBD is very desirable if not for the interest that comes from Hodl HBD savings but for the fact that the regulators will not have any reason to interfere in the usage of the HBD.
Check out guide on Hive backed dollar for more insight

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