RE: More on Increasing the Peg of HBD to Account for Inflation
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We might have to confirm for sure that USD is hyper-inflating
Given the Fed has been accelerating fiat creation for several years now, and the super acceleration most recently it's coming. They've masked it for years between import slave labor coupled with immigration and spreading the misery worldwide as the world currency. Those tricks are used up.
I've never studied the math behind the chain, but I've always wondered why a stable coin would fluctuate as that seems to defeat the designation/purpose of stable. I really should understand the mechanisms they employ. I never bothered as my sole focus has always been on the Hive (Steem before) coin. I always viewed HBD as a nuisance for the most part, lol.
I never thought about it the way you framed, when you pointed out that we too are chaining ourselves to the inflationary dictates of the Federal Reserve. I'm not sure what other framework one could use, and understand the use is due to people wanting to have a value comparison both familiar and practical, as fiat is what is used to purchase most everything. Even something like gold, which is also manipulated, would be subject to the whims of outside influences.
Will be curious to read more informed/knowledgeable back and forth so I can shed some of my ignorance on this.
Okay so originally I was thinking this as well. By piggy backing on USD we tether ourselves to the Fed and are at their whim, correct? However, this is only true for those who hold HBD. If the Fed hyper-inflates USD they are the ones that get fucked over.
Meanwhile, because HBD is also tethered to Hive, we actually gain the same benefits of leeching value from the HBD holders just like the Fed leeches value from USD holders... the more I think about it the more crazy these dynamics are.
In the example above, if USD loses half it's value HBD loses half of its value, but because HBD is the debt of Hive all Hive holders just lost half of their debt! Like... WHAT?! It's weird. It's also a good reason to keep things the way they are as long as USD remains a "good enough" solution for the world.
Well, there is no such thing as a stable coin, all currencies fluctuate relative to each other and we shouldn't expect anything different from HBD. The best we can hope for is for it to fluctuate within an acceptable range.
As of late it has been tracking the value of the dollar very closely (except on 4/30 and 5/1) but the price is very sensitive to the debt ratio: