One other killer feature of HBD that I just realized: if HBD is below $1, instead of selling the HBD, you can always convert it to $1 worth of Hive. Meaning, if you have 1 HBD and HBD's price happens to be $0.95, then instead of selling for that price, you convert your 1 HBD to Hive, and you get $1 worth of Hive. So if you hold HBD, you are pretty much guaranteed to keep your dollar value. A really unique feature. And this hadn't occurred to me until now.
Due to how the conversion works, there is a slight possibility you will get less than $1 worth of Hive as measured by the Hive market price at the moment the conversion is completed. You get $1 worth of Hive as measured by the median price during the 3.5 days of the conversion. If there is a price spike, for example, the median 3.5-day price and the current market price may be different to a noticeable degree. People taking advantage of the conversion function should have some understanding of it and keep in mind that there is a slight chance they will get less than $1 worth of Hive as measured by the market price at the moment the conversion completes (it will always be exactly $1 as measured by the 3.5-day median price). Depending on whether they want to sell the Hive right away or hold it for some time, they may be happy or unhappy with how much Hive they got. Long story short, while it should be understood this is not an absolute guarantee that you will get $1, it comes really close to a very good guarantee. Mainly an upward spike in the price of Hive will cause you to get less Hive (but it'll be worth more), and then if there is a sudden drop in the price, the less Hive you got will be worth less. So, an unlikely but possible scenario. And even if it happens, you don't have to necessarily sell your Hive right away, you can wait for a better price if you are not under pressure to sell.
That is true although it is completely guaranteed.
The conversion mechanism does put some of what is being converted at risk of a price spike (or decrease depending upon the direction one is going).
But it does provide some insulation and an opportunity to scalp a few percent.
Posted Using LeoFinance Beta