You are viewing a single comment's thread from:

RE: Hive Meetup Vienna: How to make Hive great again (MHIGA), Fix inflation, Hive Open Days (04/30–05/03) in Alicante, Spain

Is anyone able to briefly explain to me how higher interest on HBD contributes and how lowering the rate makes things better. I don't understand such thing but I'm genuinely curious if anyone is willing to explain briefly and simply

Sort:  

Short answer, HBD is not backed by a Dollar treasury like USDT but is only backed by HIVE, so when you print HBD you are actually printing HIVE at a very high rate depending on the current HIVE/USD price.

Oh okay gotcha. I see what what you're saying. Thanks for clarifying. That makes sense. It does seem like the price of hive has been steadily decreasing over time over the past few years. I often wonder if it will ever even hit $1 again. I have my doubts.