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RE: What is the Price of 20% APR on HBD Savings? .:. Late Night Blogging
Are we shooting ourselves in the foot by having this high APR on HBD savings?
Yeah I think we are, as you said all APR comes from earnings in the end, and in this case I think the price of HIVE iteslf is suffering because of it, HIVE is what is backing up the value of HBD, Hive Backed Dollars is the name, so with a very high APR for a very long time it will eat the value of HIVE, at the time when it was implemented and for a short period it could have been good to give HBD a boost, but for the long term it needs to be at a sustainable level.
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The conversion mechanism should fix certain issues when the price start dropping HBD for HIVE... But, even if that part works, I still think that HBD is taking a lot of value from HIVE... And that makes more damage at the moment than we can even measure... The social aspect of the network is going into the background and that is the purpose of HIVE... Isn't it?
The things we build on top of the blockchain, including social, is the purpose in my opinion, and the monetization is there to pay for it and incentivize users, which leads back to the value of HIVE being under pressure due to too much focus being on earning interest on HBD rather than building value for HIVE itself, the fact that the price of HIVE has not dropped more is a show of strength though, so with less pressure from HBD interest it might have gone up quite a bit instead.
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@ph1102! You Are Alive so I just staked 0.1 $ALIVE to your account on behalf of @flaxz.ctp. (1/20)
The tip has been paid for by the We Are Alive Tribe through the earnings on @alive.chat, feel free to swing by our daily chat any time you want.
