I'm going to revisit the original premise and put forward the most basic (and essentially important) of questions: why should HBD exist in the first place?
I can think of reasons why it shouldn't exist, in fact, between us all, I think we could make a long list. But why even bother with that until we first have an argument for why it should exist? What needs does HBD satisfy (that already aren't met by dozens of others already - only a couple of which are really successful - and by fiat itself!)? What value added does HBD give us?
The advantage is a local stable coin that doesn't require going offchain and thru exchanges, etc., with all the issues that entails.
It's still a taxable event in most places, going from HBD to HIVE, or vice versus, that is, regardless of whether it's done onchain or not. As @blocktrades says, the only advantage is internal, otherwise it's the equivalent of having fiat on the blockchain (to each his or her own I guess, but that kind of defeats the purpose of being in crypto to begin with, I would think). Was much more interesting pre-2018, but now it's only an "easy way" to calculate DAO funding (which could always be done on a theoretical basis and ultimately paid out in HIVE).
The problem I see with paying only in Hive, is that there will only be more liquid Hive and there will be more inflation which would make the price of Hive lose even more value.
you get it @encrypt3dbr0k3r 100%! DAI is better and it works because of the loan mechanic. For that reason, it is stable and works well. It can also better scale as HDB, that's the reason I think we need a loan mechanic on Hive to lock up Hive and create HDB.
That's a pretty limited "advantage", but I imagine you guys have thoroughly gone over the cost-benefits. Kind of seems like a dead-weight to me, but, again, like I always say, I'm not here to convince anyone of anything, just to share my thoughts and opinions. There must be other advantages that you haven't mentioned . . .
Hi blocktrades, Thanks for this reply
Honestly I consider this as off topic and a distraction. HBD exists and there is no consensus among stakeholders to get rid of it. It is unlikely there will be such a consensus any time soon.
I'm aware that in the past, like maybe four years ago, there was some musing by high level people involved with Steem that perhaps it should be gotten rid of, for reasons that were never persuasive broadly, which is why it didn't happen. The idea may linger on, but it is a zombie that is hard to kill, not anything that is seriously going to happen.
Since it exists, I'm proposing how to make it work better and add more value (by channeling demand to HIVE).
I highly suspected that to be the real reason. Thanks for the answer.
EDIT: On related note, great to see that you're still as committed to this project as always - I've always really respected you, all the way back to the early bitcointalk days! Good luck with this current proposal and everything else you set out to do. Cheers
Thank you for the words of support.
Hbd precludes 30m usd pizzas.
It is worth 1usd in hive, regardless of if hive is a dime, or a dollar.
As long as you only use hbd to purchase things, you don't have to worry about a price spike in hive causing you to transfer those opportunity costs with the purchase.
It also allows free conversions back and forth depending on your assessment of future price rise, or fall.
No need to trust exchanges, nor tether.