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RE: What is the Price of 20% APR on HBD Savings? .:. Late Night Blogging
If the goal is to create enough HBD so that it could actually be used as a transactional stablecoin the I don't think that has been achieved yet. Not even close. I agree that at some point HBD interest must come down (slowly). I just think that time is now. Demand for HBD will create demand for hive (for conversion if nothing else). I believe we've actually seen that with a deflationary effect on hive. The point being that I don't think the HBD interest could be hurting the value of hive. As far as other tokens are concened, it's not the responsibility of hive witnesses to create value for those. That's up to the token creators.
0.00085903 BEE
I agree with some of your points... Yes, HIVE is deflationary and if it would be as you are saying (people running to convert HIVE to HBD, etc), it would push the price of HIVE up... Which didn't happen... On the other side, we have ETH that is deflationary as HIVE and the price is still holding nicely... I know that we can't compare these two, but still...
I agree on this too, but... It's not the HIVE witnesses' concern to "overvalue" HBD and harm the complete ecosystem... 😃 20% HBD over 12% on HIVE is favoring second tokens over the primary one...
Over the long run, hive is held pretty steady. It's approximately the same price now as it was two years ago. If you look at how much hive has been converted and even at how much HBD is in savings, it's really not that much in the scheme of things. Other factors have a bigger impact on price.
Not sure what you mean by overvaluing HBD. It's supposed to maintain a value of approximately $1 which it is doing. For HBD, maintaining that loose peg is what is important. The value of hive itself could go up a lot or down a lot. That's dependent on it's utility more than anything. More apps that use hive will equate to more demand and more value. Nothing else is really going to do that. Of course, HBD as a useable circulating stable coin would help if that could ever be accomplished...
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