Its the main question these days .... from the writing above you should take conclusions.
Because of the debt limit the HBD supply is small. Its 1 to 20 in market cap for HIVE atm.
HBD supply can not expand super fast as UST did. This is a pro and a con at the same time. It doesn't allow a significant grow in a fast period of time.... UST did 0 to 18B in just one year.Even if this small supply somehow becomes weight on the chain, super fast drop in the HIVE price, the HBD price will be lowered, meaning it cant print big amounts of HIVE. Say HIVE price drops to 10 cents in one day. First the feed price that is used for HBD to HIVE conversion will take 3.5 days to adjust to those levels. Meaning no instant massive conversion HBD to HIVE. Next if the super low price stays there for days, at the current level of HBD supply and a 10 cents HIVE, the value of HBD will be 0.5$ from the blockchain, reducing the weight on the chain. If it drops further to say 5 cents, the value of HBD will go to 0.25$, losing the weight and the ability to push the HIVE price even further.
The system has been tested and survived with much less adoption and security mechanics, that it has now.
Sounds pretty comforting
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Hive dumped more than x7 times from it's HIGH price. Hive quantity is an unlimited. why it will grow in price? any suggest?
well written
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