It would probably be overvalued at first and take a little while to decline. We'd destroy a lot of HIVE creating HBD to dump on to the market to push its value down to the new value of USD, which could be good for the price of HIVE (over and above that the price of HIVE would likely go up in USD terms just due to the USD flash crash itself).
If it seemed like USD had utterly failed as a currency, we'd probably switch the peg to something else such as a basket of commodities, after some time to debate what the new peg should be.
Ok, thanks for the explanation. This was my only concern before considering a larger position in HBD. Hopefully we could move fast enough to switch the peg if and when that crisis arrives.
Honestly if you don't have confidence in USD to survive your holding period, I wouldn't buy it. Right now it is intended to track USD. Yes that could change, but if you don't trust USD you shouldn't trust something that tracks USD either. The idea of switching peg would be to preserve utility going forward (hyperinflation makes a currency nearly useless), but you shouldn't infer from that a promise to protect HBD holders from taking a loss if USD collapsed.
Ok, thanks for your response. Maybe Hive is the better investment for my needs then.