RE: Recap for Dec 2023

I don't know why people would leave over 20 percent interest.

The acronym HBD means HIVE Backed Dollar.

The HIVE conversion algorithm backs the value of HBD with HIVE. HBD is a loan against HIVE.

You may not have noticed, but there is a button in your HIVE Wallet that allows people to convert HBD to a dollar equivalent of HIVE.

People who understand investing look at HIVE. They see that isn't an intrinsic value to HIVE like traditional stock. They see that there is an 11 million dollar loan against HIVE. The loan is currently 7% of HIVE and will jump significantly if there is a market disruption.

People who really understand numbers understand that the HBD loan costs HIVE more than 20%.

People tend to invest in HBD when the price of HIVE is strong. They convert their HBD to HIVE when the price is low. Last year I bought HBD when HIVE was around $4.44. I converted it back to HIVE after the price dropped below $3.

The market capitalization of HBD dropped about 2 million between the peak and valley.

That means that HBD investors bought 2,000,000 HBD at $0.4 HIVE. That is about 5 million HIVE. They converted the 2 million HBD to HIVE at about 0.3. They dumped about 6.6 million HIVE on the market during the market dip. This market move generated 1.6 million HIVE.

The market had to absorb this HIVE at a low!

As for my claim that the high interest drives away users, I beg you to look at the statistics by @arcange. The "Monthly active Users Chart" shows that there was a precipitous drop in users after the decicion to raise HBD interest to 20%. We lost about 2/3 of our users since this decision.

I can also prove that the sharp decline in HE coin values followed the decision to raise the HBD interest rate to 20%.