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Really? What are the risks attached to HBD?

It's not stable that's for sure. And of course it has the risks of just about any other cryptocurrency. Just because it's called a stable coin does not mean it's 100% guaranteed to hold that $1 peg.

that is true, but the peg is not even so important as we can always do the HBD>Hive conversion guaranteeing the conversation being at $1

This is simply false. Market forces can drag this lower. There is no such thing as a low risk 20% yield. There is indeed risk. What do u think happens to Hive price if there is a massive move lower in HBD and this is the way it’s artificially kept close to a dollar.

but is it? I think you are not appreciating the algorithmic part of HBD. We are always guaranteed to get $1 worth of HBD as long as the hair cut rule doesn't come into play. And that would only really be happening in the opposite case: when Hive crashes and there is too much HBD (in HF26 30% of Hive supply). If HBD crashes then we won't have the hair cut rule and you will always be able to get $1 worth of Hive even if HBD sits at 20 cents. This would mean that HBD would be burnt at a massive rate with an already low supply. If anything there is then a massive incentive to buy HBD as it would be extremely profitable to buy HBD at 20 cents and convert it to Hive for $1... that's the whole point of how HBD gets its stability. The only real risk to HBD is the hair cut rule. Prove me wrong :) @taskmaster4450 made a good post about this a while back

It is indeed risky. Nothing offering 20% APR isn’t.

“ think you are not appreciating the algorithmic part of HBD. We are always guaranteed to get $1 worth of HBD as long as the hair cut rule doesn't come into play. “

Tiis is true today, it doesn’t have to be tomorrow. I love Hive and this community. I’m not pushing back for any reason other then I see people honestly believing there is almost no risk and it’s just not true. The push to put HBD on other/more platforms only increases that risk. It works for on sitevuse fine but once it’s something else it has to follow other rules and it just doesn’t make sense at all that anyone would think it’s safe. I
Tell me more about this “ hair cut rule” ?
Bit regardless you must understand the rate isn’t safe right? It can change anytime. If any semi reliable platform could give 20% wity little risk don’t u think we’d see the his offered everywhere? I again love the Hive community! Im not an enemy here, I’m just using common sense and it’s impossible to claim it’s almost no risk when it’s just a algorithm and no real backing. I also fear in a bad turn the hit Hive will take from pressure in a situation where HBD is crushed and Hive is used to prop it up. I’ve held less Hive then I otherwise would because of this risk and I know I’m not alone. You pay for the pleasure of 20% in some way and it’s likely going to be in Hive price medium term unfortunately. I did luck out and sell a bunch above $2.00 when I was bothered by this so that’s great but I’d rather hold more and not have this he going over my investment.
If HBD is successful is getting onto menu other platforms it will not be good for Hive. It will be a huge risk in general. Nothing is free in this world and we pay the price somewhere.

Now Hive given it’s not a pegged or claimed stable token I’d say should be the one getting high interest instead. We don’t really need HBD anymore with it being so easy to use lightening network directly to Hive to swap. But it could be fine for on platform use only, once the focus is HBD more then Hive it’s not going to be good for us long term. It’s a huge mistake.

you are basing your arguments on what exactly? That 20% interest just isn't possible? ("Nothing is free in this world and we pay the price somewhere.") That might be common sense at first, but it's not a strong argument because we have code. And code is law so to speak. Until you show me that HBD's interest rate isn't sustainable on a fundamental level, your argument is only conjecture. From reading your comments I assume that you haven't really looked into HBD (and the hair cut rule etc.) Maybe you start there and then you'll get a clearer picture. There are only 3 risks to HBD (listed in descending order of severity):

-a disruption to the hive network (e.g. sybil attack)
-hair cut rule (which has always been very temporary so far)
-the reduction of HBD's interest due to the witnesses

It might sound "crazy" that this list is so short, but this is why on Hive we call HBD a low risk investment.

I read all his posts and respect @taskmaster4450 a lot. But I couldn’t disagree more with him on this. I say this as someone who supports his podcast financially.

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Not even important? Now this do you really believe? Honestly?

💯 correct!

Good to see some sanity being honest about this! Cheers friend

20% APY and "risk free" do not go well together