There is a lot of discussion about Stablecoins and how they are heading towards an end.
This is going to be something that we hear for the next 12 months. I hope people learn from the experience with UST and grasp what it takes to build value.
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I hope so.
It's high time we push the focus from short term success to long term by not just holding stablecoins alone but making sure we build utilities around it.
It will be nice to see HBD have more than 10 use cases here on HIVE, in let's say 5 years from now. Ragnarok is on the list, let's see what comes next*.
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I don't think just Ragnarok is enough. We need more applications and platforms to use HBD. However, the first thing that needs to change is to increase both the liquidity and supply of HBD to make this feasible.
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Yes, Ragnarok isn't enough, we need more use case and that's why we have time on our side rn, being underrated is a blessing in disguise for now.
We'll see how much can be built around HBD with time.
PHbd pool is doing quite well and our liquidity issues is being solved slow and steady, we'll see how big the pool can go in a year from now.
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That is one of the first things that we need to do. Derivatives need to be created off HBD.
We need to get into many different financial products surrounding it. I wish the team would bring out bHBD quickly to have another derivative out there. Could open up the door for more arbitrage.
That is what we need, then can build more advanced derivatives on top.
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It would be nice to see that(bHBD) roll out sooner than later.
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We have to first make it stable.
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We actually have to get into the bonding first. This opens up a host of other possibilities.
Of course, since few who are dealing with these things understand the existing banking system, they are looking at things the wrong way.
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How's Ragnarok gonna use HBD?
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I believe it is the payment coin for purchases relating to the game. So whatever anyone wants to buy, it will use HBD.
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Need to hit up on the 4 different factors I discussed in my posts last week:
Most, at most, focus upon payment. Certainly required but the others give it resiliency.
If we can build these out, it is going to make HBD a lot more stable along with deterring attack.
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The problem with the stablecoin is that, we don't have the coherent doctrine of a true algorithm to preserve the fundamental value of a stablecoin, it is still in the experimental stage, there are alternatives to USDT, but for a variety of reasons they dont gain that kind of widespread adoption.
The problem is that people are trying to get the value out of an algorithm instead of building value into the stablecoin.
This is a point that I am trying to spell out to people. There are many ways to build it and we need to focus upon the four different areas with HBD.
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Exactly, that's the point. With a sound capital, and taking advantage of the algorithm, there are people who are making their fortune safely. And that's the problem.
I would be curious if USDT is fully backed. I'm using BUSD lately.
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USDT keeps on changing its stance on whether it is fully backed or not. So apparently it's not transparent and if you look into the on-chain stat of how they print USDT every single time BTC dips, it raises suspicion.
Unfortunately, in a decentralized ecosystem, we have a single large concentration of USDT which is a manipulative stablecoin IMHO, most of the users are gullible, so they prefer to keep USDT as a hedge on the premise of its market cap. So I think the people should do a favor to themselves, and make a why-why analysis on USDT as the stablecoin. An informed choice is always better.
Unfortunately, hard days are waiting for stablecoins. The problems do not appear to be fixable.
That's the key point
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But do they really learn?...
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I don't think most of them care. But they will have to learn one way or another.
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Which problems?
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Most people don't make an effort to learn. And they fail to learn from events. I think very few people know what cryptos and blockchain mean.
Not being aware of this is also an important problem.
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People will learn from it but I still think it highlighted a larger issue in the crypto ecosystem. We still rely on fiat to cash in or out of the system and it can cause some massive damage if these were to collapse. I think the other coin people are looking at is Tether and they still have a large amount of the stable coins out there. So a collapse there might be another hit that will definitely hurt
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Yep… agree with you. We still rely on fiat.
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That is because people are looking to the backing instead of the value building.
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Better now than later. Somehow this luna crash has been handy because it's cleaning the space of potential future wrecks hurting investors.
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