true, yes. however, I was thinking that it might be possible for the market value of HBD to be pushed down if Hive crashed to a very very low level, since if HBD can't be exchanged for an accurate price of Hive from within the blockchain and there aren't any external markets with good HBD trade volume, then holders of HBD would effectively be stuck holding a devaluing currency and would have to undersell it in the internal market in order to cash out.
i think it's safe to say that in this sense, HBD is 'Hive with a different hat on' and so it's ultimate stability is dependent on Hive's stability to some extent. as someone who holds a fair amount of HBD in savings (by my standards), this is important for me to understand (and for others too).
It is dependent on Hive yes. You can't guarantee value unconditionally and out of thin air. The stables that have claimed to do this are fraudulent. HBD isn't because it makes clear you are subject to a potential haircut (even a severe one) if Hive can't continue to support the value.
yes, understood - even gold back currency is not guaranteed.
aside from understanding the mechanics for my own use, my main interest is that potential investors have easy access to transparent and clear info on this topic. i tend to find that hive's details are available somewhere but not easily and definitely not in the very concise form that is beneficial in web UIs. people tend to assume that stable coins are likely to be scams at this point - since there have been several - which we saw in the recent twitter threads on this topic for HBD.
being able to convey in clear language/images/video how the relationship between hive and HBD works would probably make it easier to advertise/promote HBD.
Your witness price feed is stale.
Thanks, yes, I will get to it soon.
Good points.