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RE: Hive Haircut Rule: Will It Ever Need To Be Changed?

in LeoFinance2 years ago

Wouldn't it be the same as swapping Hive for BTC if you're replacing HIVE for HBD? Trading/Transacting with just Hive would just increase sell-pressure for Hive. Having HBD as a mandatory option should give more stability and should lower volatility to the downside (as it is pegged). But I guess it's all theory until it's not. So I think it's good to test things out for longer periods of time before making adjustments.

It also makes for a valid reason to hold and transact with HBD if you want to chip in and do your part btw. At least, this would be the case for me to hold some/more HBD, and to put more in savings to mint new HBD (which also increases the supply).

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No worries, English isn't my first language. Mandatory wasn't the right word, 'secondary' would've been correct.

I am not sure what you refer to. Did anyone ever use SWAP.BTC to buy a product?

You missed the point. But sure, indirectly it's probably how one may see that, as in: "I sold my BTC to buy X". Whatever form of (wrapped) BTC, in your case; SWAP.BTC is then sold (note the selling pressure if thousands will do this)/traded by buyer/merchant for a currency to cover costs and expenses. The same would go for HIVE, and obviously HBD as well. Since HIVE is a governance token, and HBD has more properties that resemble a similar stablecoin (like a dollar), it's a no-brainer which one to prioritize to use to transact, but that's indeed not my business. Fair, anyone could use HIVE to transact, I wouldn't mind. I price HIVE much higher than it is right now, so I'd be more than happy to accept HIVE -right now- as a receiver. Understand that uncertainty will grow when prices of Hive will be higher, are volatile, spike, etc., and the risks (insert your Utopian Coin here) and volatility probably grow with it as well. But another important factor is that buying pressure -needs- to be equal to the introduced selling pressure to cover costs/expenses of products that are being bought/sold with HIVE (and not with HBD).

If you have purchased Hive for 10 cents, and you can buy something for 10 dollars for 1 Hive in the future, let's say 30% is costs/expenses. Guess how much money is actually flowing out of the ecosystem at the price of 10 cents? Sure, this is great for the early investor, but the newcomers are paying for that. Do the same basic math with HBD. This could be easily countered with transacting in HBD, as prices have shown to be quite stable over time. At this point, I'm not even considering the Utopian version. It would be the same as "Hey, I bought this with HBD", even if this meant using HBD to swap for BTC, which then swaps for USD or whatever currency is accepted. The point is, that such a thing will decrease selling pressure -to the downside- of Hive (and increases that of HBD).

OK, HBD is minted according to fixed rules but this exercise should help understanding why HBD is not a dollar.

No one is saying that HBD is the same as a dollar. It is aimed to be pegged to a dollar equivalent worth, do note the difference. With your logic: Hive isn't a dollar either.

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