RE: More on Increasing the Peg of HBD to Account for Inflation
(Edited)
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With the USD hyperinflation wouldn't be smarter to create a HBD pegged to x amount of satoshis instead to peg it to dollars?. If the dollar would have good health could be interesting to make HBD more stable but as it is now with the FED printing money like crazy I don't see that a good move and in fact the SEC has several issues with stablecoins pegged to dollar seems like they could try to search legal actions against them.
Just asking is not like I know much about economy.
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By definition HBD would not be "pegged" to anything but our own monetary policy. We would be constantly adjusting the peg with community voting (collateral requirements and conversion rates) in an attempt to keep the value stable. USD would just be an anchor point that we use to try to determine what the current "stable" value would be given the circumstances. We could just as easily do the same thing with a "peg" to gold or even Bitcoin, but those assets are inherently more volatile than fiat, and are more likely to both and gain lose value (while fiat only loses value most of the time). It's easier to gauge the stable value with a peg that is already stable and prone to losing value slowly or consistently (aka fiat).
I agree with this. USD shouldn't be the ultimate peg of HBD, but the initial anchor point. Of all the stuff you mentioned in the post and in the comments, this made an impression to me. I don't understand some because I'm not an economics major, but this one I understand and agree. Our stable coin (aka HBD) should be pegged to our own monetary policy. Pegging it to other policies which are both volatile and devaluing is counterproductive to our own ecosystem as it creates unnecessary problem in the future.
You might be right, your post is ahead of its time. But it doesn't mean that possible scenario wouldn't happen in the future. There should be mechanisms to be put in place to counter or make us prepared for those scenarios. That's being proactive as opposed to human's reactive nature. I love the discussion. I may be an ordinary user, but I would love to understand the inner workings of this space. The things that are not talked about at the surface. The things that made this space function, but not very much appreciated.
Nice read!