RE: Hive Backed Dollar (HBD) Is Becoming A Stablecoin
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With 7% interest moving HBD into savings is very attractive. I started doing this with some of my rewards sometime in the last two months. I was very happily surprised by the interest earned.
In short, I intend to continue to increase my savings account.
The added bonus is that HBD just might become a truly viable stable coin for commerce especially in those areas of the world where fiat currencies are becoming unstable.
Wait, now that I think about all the fiat currencies around the world are becoming unstable.
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The big key is the fixed income market. That pays like crap. Could we see something like HBD step up as a viable alternative to that.
That is the real boom for DeFi and crypto. Try to pry the fixed income money out.
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Exactly! I have not seen 7% interest on a savings account in decades. And now that HBD is a little more stable, it becomes very attractive. My wife and I laughed at the fact that in a few months I had earned more money on 5 HBD then we earned on several thousands of dollars in our Money Market account.
Crazy times.
Isn't that the truth. Over the long term, that could really make an impact upon one's financial livelihood.
We simply need a way to onboard money rather inexpensively. This is where having a USD/HBD pair on exchanges would help.
That said, if we can get a lot of cryptocurrency using HBD, then we will really propel this forward.
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More stable? How so?
The hard fork was designed to prevent the wild swings shown on this chart. At one point HBD rose to $2.40. The range of fluctuation should narrow down significantly if the hard fork corrected this problem.
It doesn’t do enough. I’m just telling the truth. It’s not stable. Going from 100% plus moves to 7% isn’t making it a stable coin. It needs to be .99-1.01 or bust. But also there’s no backing to it and the process to control volatility hasn’t been tested much at all. It’s been weeks. I love this place so I’m definitely not bashing Hive platform🤟
But I am calling it like I see it. HBD like steem b4 it isn’t stable and hasn’t been yet any given week. New users are t going to care if it’s said we’ll used to be way worse so don’t worry it’s down 8% cause it used to be 80%.
It’s not what it’s supposed to be. And the volatility will get worse again the way it’s structured
I have read several of your comments on this post.
Here is where we agree:
HBD is very confusing to new users. I have been on the chain for four years and only recently have I chosen to put a very small amount into HBD savings. I did this in part because of the offer of 7% interest. I am simply exploring a new area of the chain.
The point of my initial comment was really to laugh about how little I am earning every month in interest in my regular bank account compared to the interest I earned in my HBD savings account. Truthfully, if there is anything I should be worried about imploding it is my FDIC insured bank account.
As to where we disagree, well disagree would be a rather strong word at this point, since I consider HBD to be more of a BETA Test at this point.
As to the current structure of HBD, I defer to your knowledge since I am an old fart who can barely "cut and paste" a meme onto a post and have absolutely no idea about the coding. :)
As to the fact that HBD is not backed by the USD does not really bother me because it would require a 3rd party to hold the assets presumably in a bank this has TETHER writ large. For me at least, all blockchain cryptos are an anti-banking assets. The larger concern would be an implosion of the Federal Reserve Note which HBD is tied to that would concern me the most.
Finally, the goal of establishing a "stable coin" for commerce and fixed income is a goal in my opinion that is worth pursuing.
At the end of the day, we are all living in very strange times. Everything from this point on is either hit or miss. Will this work? Probably not as well as it is hoped but better than expected.
We shall see. If I am wrong . . .
Thanks for taking the time to do a thought out reply👍 You Indeed make good points.
I hope it remains stable! I gotta say if it does follow dollar exactly well with inflation over 7% is it even worth it?
Besides the USA government is going to start going after “dollar coins “
It’s just confusing. I think it will hurt us not help long term.