It is also stabilizing the price of HBD, discouraging people from buying it speculatively
It doesn't seem that way at present, and I wouldn't be surprised to see this uptrend continue.
Do you think the speculators are aware of hbdstabilizer?
And, is it the case that the higher HBD goes, the more HIVE is bought, and in the long run this project will have a positive influence on HIVE price?
The impact of @hbdstabilizer is not within a vacuum. We can only compare to 1) previous Steem bull runs and 2) the current Steem bull run, which is a near like for like project technically if not socially.
HBD is tracking much closer to $1 than during 2017 crypto bull market and compared to current Steem bull run. It's also a simple function of basic economic principles that it should work this way.
I think the speculators are mostly clueless, and @hbdstabilizer exploits their inefficient pricing to the benefit of Hive stakeholders and speculators. All we can do for those HBD speculators is to inform as many people as we can about HBD and how it works, so that they can make more informed decisions. I actually think the stabilizer being on the front page every day helps raise awareness to the benefit of preventing HBD speculators from making bad decisions.
Yes.
Thanks.
I hope that most of the Hive community is aware of the project. Not that I would normally be speculating on HBD, but hbdstabilizer is another reason not to.
However, I will be holding what I collect due to what I saw in previous Steem bull runs where SBD reached multiples of STEEM before STEEM took off.
While HBD is still not a true stablecoin, it is doing far better than SBD historically during bull markets.
It looks that way on the charts, but the real test is coming in the next 3/6 months I think. HIVE has fallen in price throughout that stable looking 75c HBD and now it's starting to move, so is HBD.
That's 75p, my local setting on Coingecko is GBP 😅
I think it will be necessary and beneficial for either the @hbdstabilizer to convert HBD when prices are below eg. $0.95 or to be directly funded with Hive from @hive.fund.
That would create Hive inflation from HBD - however as it will sequester the profits back to @hive.fund, the overall inflation should be much lower than it would be if only private individuals were converting Hive and releasing the full amounts on the market (which can in principle have a compounding effect on conversion-based inflation).
Oops, I should have seen that!
Also - Steem was mostly pretty flat during the time of the SBD boom in 2017. It's my view that eventually excess SBD value was channeled into Steem by a slow mechanism, and that's what caused Steem to have a boom significantly after the rest of the crypto space.
A full causal analysis is very difficult, but we are in a unique position where Steem vs Hive is nearly a like for like, A/B test. Perhaps with a few months more time we will have the kind of data that we can say with confidence what kind of causal link there is if any.
I'm looking forward to a potential analysis in the coming months. I think i said similar a few weeks ago, but the best data might come to light at the end of the bull market - SBD swinging high then low, and hopefully HBD not going too wild in either direction.