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RE: HBD or HIVE? An Analysis Of Both

in LeoFinance3 years ago

I would say comparing the two is only normal, but saying one is better than the other is just insane!

Hive is volatile, yes, HBD is supposed to stay stable. Having this in mind, It's rather fascinating that people can so much forget that HBD needs hive to survive, if it's paying 20% interest, it's literally drawing that value out of hive, so if hive was to tremble to the floor, HBD would do same because the work hand in hand.

HBD is an incentivizer, HIVE is what backs it up, if you take away HBD, you kill an investor's joy, something that had added value to the chain, and then if you take away Hive, HBD doesn't exist anymore...

It's better to say we're just looking to understand which to focus more on as a long term investment or as a short term investment just to maximize profits, this will help anyone make a better decision.

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Having this in mind, It's rather fascinating that people can so much forget that HBD needs hive to survive

That is true although it is exaggerated at the moment because the use cases for HBD as a medium of exchange are rather small right now. Build that up and it takes on a completely different meaning.

if it's paying 20% interest, it's literally drawing that value out of hive,

This is not necessarily the case. While conversion will shift the "value" around, at least in theory, HBD can actually add to HIVE's value.

The challenge is people only see one or the other because the commercial use cases for HBD are non existent. However, there are a lot more potential use cases for a stablecoin than just staking for APR.

People simply do not correlate the attributes properly. That is like saying the USD only can be put into a bank and earn interest. That is one use case and, quite frankly, a minimal one.

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