A Friendly Reminder: Opt To Receive Your Hive Rewards as 50% HP And 50% HBD
Speculators have been buying up HBD at a 40% premium for the last week or so.
Speculators have apparently been hoarding HBD in hopes of HBD spiking the way it did two weeks ago so as to have an opportunity to separate fools from their money.
Why this is a problem
What this does is weaken the value proposition of our stablecoin. This nonsense is possible because its liquidity is thin.
The reason why I'm calling speculating on HBD a fool's errand is that it's a liquid coin whose only use case is payments on the Hive blockchain. It cannot be powered up to gain access to a revenue stream. Besides, HIVE has much more of an upside than HBD because once HBD spikes it will be slammed down hard by everyone who receives rewards from the Decentralized Hive Fund, all of which are paid out in HBD. Also, the high price of HBD incentivizes every author to opt for receive 50% of their rewards in HBD because the system prints them to a certain degree assuming each is worth exactly $1.
Holding HBD risks missing out on HIVE gains
If you hold your funds in HBD when the price of HIVE is as low as it is now, you risk missing out on large gains when HIVE starts moving. HIVE is traded on a much larger number of exchanges some of which have very large volumes, unlike HBD.
Because HBD is currently priced at $1.40, opting for receiving 50% of your author rewards in HBD makes your author rewards 20% in value than if you opted to receive all of them in HP. To realize this advantage, you only need to trade your HBD for HIVE on the internal market.
Swap HBD for HIVE, do not convert it
DO NOT CONVERT them into HIVE! That's because the conversion process assumes each HBD is worth exactly $1. You will lose out on the 20% discount on HIVE! You can also use swap.app for convenience. If you're using peakd.com, you only need to select "Swap to HIVE" from the drop down menu and follow the instructions.
Swap.app is a third party service but I have never had any issues with it. I believe it can be safely used for small sums.
I hope this helps!
Posted Using LeoFinance Beta
I always convert my HBD to HIVE. I don't see why we still have a HBD.
Posted Using LeoFinance Beta
HIVE is ridiculously volatile. A native stablecoin has very big potential value in facilitating payments. There would be no way for the DHF to function if the rewards were paid out in HIVE. No one can pay their bills if they work full time on a project if their daily income can fluctuate between $1 and $50 within just a few months.
HBD can be improved by ways that @edicted has talked about in length. His proposal is very much worth looking into and brainstorming by the developer community here.
Posted Using LeoFinance Beta