The conversion of HBD is $1 worth of HIVE. This is not market driven but is written into the code. The amount of HIVE will vary for that dollar worth of HBD but it will still amount to that total in USD.
On the market, that is based upon trading. But when you have something that is convertible for $1, it makes no sense to pay $1.20 for something that is worth $1.
That means it has already been fix by the blockchain to be stable
Well stability comes in two ways.
The conversion of HBD is $1 worth of HIVE. This is not market driven but is written into the code. The amount of HIVE will vary for that dollar worth of HBD but it will still amount to that total in USD.
On the market, that is based upon trading. But when you have something that is convertible for $1, it makes no sense to pay $1.20 for something that is worth $1.
In that case the amount of HBD is encrypted for a long time and it can go pass or fall too far below ?amazing guess i learnt something new