We can monitor the situation and profit on it the next time around. HBD printing only gets out of control when the price of HBD spikes high and doesn't come back to $1 for a long time.
Printing the HBD isn't the problem... the problem is that HBD doesn't get burned when the price starts going down. It's a good thing all Dev funds are printed in HBD because this puts downward pressure on the price.
HBD printing only gets out of control when the price of HBD spikes high and doesn't come back to $1 for a long time.
Do you think this is because everyone wants their author rewards 50/50 in HP and HBD in that case? I think it makes a lot of sense to opt for 50/50 when HIVE spikes because you'll get a lot of HBD that has a price floor unlike extremely volatile HIVE that has massive downside after it has spiked.
HBD does get burned at the bottom when HIVE has stabilized and risen enough to make HBD's market cap relative to HIVE's market cap to get to 10%. That's when we'll see a long-time suppression of the price of HIVE owing to all the HBD->HIVE conversions happening.
We really, really need a collateralized debt based stable coin like DAI implemented on HIVE. Fees on Ethereum are atrocious. Hive has zero fees. Wrapped versions of major cryptocurrencies and HIVE itself could serve as the collateral.
That could bring capital to HIVE and make its price go up in a sustainable and stable manner along with allowing the creation of a working stablecoin.
Party in the bull, worry about the bear tomorrow. :)
In all seriousness though, that's probably not the problem. Many of the projects that went up a ton in 2017 eventually went down by over 90%, projects that didn't have SBD/HBD. I think STEEM/HIVE would have probably performed in a similar fashion even without the over printing of SBD/HBD...
We can monitor the situation and profit on it the next time around. HBD printing only gets out of control when the price of HBD spikes high and doesn't come back to $1 for a long time.
Printing the HBD isn't the problem... the problem is that HBD doesn't get burned when the price starts going down. It's a good thing all Dev funds are printed in HBD because this puts downward pressure on the price.
Do you think this is because everyone wants their author rewards 50/50 in HP and HBD in that case? I think it makes a lot of sense to opt for 50/50 when HIVE spikes because you'll get a lot of HBD that has a price floor unlike extremely volatile HIVE that has massive downside after it has spiked.
HBD does get burned at the bottom when HIVE has stabilized and risen enough to make HBD's market cap relative to HIVE's market cap to get to 10%. That's when we'll see a long-time suppression of the price of HIVE owing to all the HBD->HIVE conversions happening.
We really, really need a collateralized debt based stable coin like DAI implemented on HIVE. Fees on Ethereum are atrocious. Hive has zero fees. Wrapped versions of major cryptocurrencies and HIVE itself could serve as the collateral.
That could bring capital to HIVE and make its price go up in a sustainable and stable manner along with allowing the creation of a working stablecoin.
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Party in the bull, worry about the bear tomorrow. :)
In all seriousness though, that's probably not the problem. Many of the projects that went up a ton in 2017 eventually went down by over 90%, projects that didn't have SBD/HBD. I think STEEM/HIVE would have probably performed in a similar fashion even without the over printing of SBD/HBD...