The more people power down, the higher the APR for curation becomes. Same amount of tokens distributed to less users. Also HIVE can go up in price while hbd not. Governance, resource credits/gas is another reason to hold HP
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Yes, that' correct.
But again, how robust is the pegging mechanism to shield the fluctuation as an effect of higher APR. Because DeFi is already front-running the crypto market. When the investors see HBD as a pegged token where the risk of dipping below 0.95 is fairly low considering the last one year's performance, they may not have any interest in content creation or curation, they might primarily join Hive to stake HBD for three days and let their HBD make passive income for them.
And not to forget HBD is a debt instrument, so any significant dynamics playing in HBD is going to affect Hive too.
Demand for HBD is a demand for HIVE
This is something that I think is being overlooked by many.
Outside money could start rolling in and in a big way. If that happens the price of HIVE can moon.
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