We must not forget what happened with Terra and UST. Same 20% earnings rate. The problem is that it collapsed. I understand that Hive is very dynamic and we can make changes to the products. Now, changes are a double edge sword: it makes the ecosystem dynamic but it also makes it difficult to plan for the long term...
That is what makes #BTC so special, it has been programmed as a dynamic system which adapts its difficult according to the mining power availible.
Still, i have high hopes for hive.
There are a lot of differences between Terra and UST. The similarities are of an algo stablecoin that was paying 20%. That is like comparing two stocks that pay 4% dividend yet one ends up bankrupt.
Hive has taken more steps to ensure the security of HBD along with the fact there is greater utility for HIVE. The idea of scarce digital real estate could enter in the future. There was no reason to have the backing coin of UST other than to create more UST.
Posted Using LeoFinance Beta
Does it not apply negative pressure on the price of Hive?
Posted Using LeoFinance Beta
It only applies negative pressure if HBD is underpriced on a free market. It's because, when you can't sell for 1$, you can convert it to HIVE which increases its supply.