Printing TOO MUCH money is certainly bad otherwise we could print infinity and everybody would be rich. The question is how much is reasonable to print? Given the current debt ratio and other factors, the current 20% seems fine, at least for now. Also, whenever the interest rate is changed, it probably shouldn't be in large chunks. If we really wanted to reduce it, maybe go from 20% to 18% or 19% and then reevaluate again down the road. Otherwise, like you said, there's likely be be a lot of people dumping.
Points that others have brought up about what really creates value in hive:
- The value of hive will ultimately be determined by the applications built on the blockchain
- Because of #1, there really can't be too much investment in infrastructure
- Because of #1, most hive advertising/promotion should be aimed at developers (unless it is the apps themselves being promoted)
On a side note, blocktrades is currently signalling a 12% interest rate. Among the top 10 witnesses there are 6 at 20%, 1 at 12%, 1 at 19% and 2 at 15%
Indeed blocktrades has been signaling 12% this entire time since before we even moved to 20%.
Actually more than just applications, the utility of Hive to the community is what will determine it's value, which is why applications matter. The interest rate on HBD of 20% made it facile for me to counter IRL inflation, which is higher than that IMHO. Cutting interest on HBD will, as I told Ausbitbank, eliminate my use of HBD to counter IRL inflation, and I will seek other options.
In some goods, inflation has reached >100% in the last year. I know, because I just bought some of them today. There are ways I can counter that inflation, such as doubling the hours I work, entering industries with higher markup than that, such as crack sales or manufacturing, and loaning money at higher rates. Some of those things I am willing to do, and others not so much. But holding HBD at 12% won't do me any good.
Thanks!