Unless you want it to be a store of value, HBD needs to be pegged to currencies widely used in the economies world wide. So that its value can easily have a representation in real market prices for the users.
Once crypto economy develops, who says we can't peg to a crypto coin instead of fiat?
I would love to see it become re-pegged to a basket of currencies and commodities.
Eg.
10% Dollar
10% Euro
10% Swiss Franc
10% Gold
10% Silver
10% Platinum
10% Oil
10% Corn
10% Lithium
10% Copper
It wouldn't be very difficult technically. The harder part is just getting consensus on doing it and when to start. The starting date would determine the weight of each commodity (ie. find the weight of eg. copper that = $0.10 on that date, and that represents a portion of the peg from then on)
Nothing changes for usage. To the user the only change is the concept (pegged to basket of commodities instead of USD), so it's like holding a foreign but still stable currency, like holding Euro even though you live in UK.
The challenge, besides the technical one, is the representation of value for the user. They can't understand its current value easily. How many burgers do you get for 10 HBD?
First, USD (and all fiat money) is depreciating currency against Bitcoin (crypto). So, this means if HBD is pegged successfully to 1$ then HBD will be a depreciating coin, not a stablecoin. A stablecoin is the one pegged to Bitcoin, Ethereum, etc. Moreover, pegging a token like HBD to fiat money is a sign of backward thinking. This is even funny. We are crypto enthusiasts and, all of a sudden, we start to peg a token to fiat money. This is very strange.
Second, yesterday, I saw a post about the HF25 saying that one of the 'reasons' behind pegging HBD to 1$ is useful for businesses. Come on! This is funny! This just means that HIVE ecosystem is not decentralized and people controlling the HIVE ecosystem live probably in the USA. That's why they pay attention to the USD while doing business. In my part of the world (Bulgaria, EU), if you ask the people what is the current rate of 1 USD they will even don't know. Because nobody uses USD. Europe has EURO. And people are not familiar with the US dollar, and nobody is going to use it here. That is why if we are going to peg HBD to fiat money, why not choose EUR? The population of Europe is bigger than in the USA. Or why don't we choose Korean Won, or Indian Rupee, etc? I am pretty sure for the HIVErs from Europe, HBD pegged to EUR will be much more understandable for doing business. For the people in Korea, a peg to Korena Won will be much more understandable.
So, pegging HBD to 1$ is a sign of centralization. This means that people controlling the ecosystem probably live in the USA and don't understand what is going on in the other part of the world.
In my part of the world (Bulgaria, EU), if you ask the people what is the current rate of 1 USD they will even don't know. Because nobody uses USD. Europe has EURO.
That's the issue?
That has nothing to do with pegging. It has to do with 'presentation'. HBD can be pegged to USD but presented on the front ends in whatever currency the user prefers (out of a list).
I have a suggestion for front-end devs then. When they have time, they can add a 'preferred currency' on their options page, and everything they express as USD on their front ends they will express in the 'preferred currency' going forward. Would that sound fine for you, if they'd implement it (because it's quite some work to do it, but it may be worth it)?
P.S. By the way, I live in the EU too, and I know both. It's a matter of habit.
What if there where pegs for all fiats and you can choose the one you use?
Just a imput, I am not bulgarian dough hahah
Greez from Switzerland 🇨🇭 ,I would choose HBCHF hahah
Looking forward zo all new features
Maybe there should be more than one pegged coin, and the user can determine which one they are paid in, e.g.
hive backed Dollar
hive backed Euro
Hive Backed Yen
Hive backed pound
Hive backed BTC??
Unless you want it to be a store of value, HBD needs to be pegged to currencies widely used in the economies world wide. So that its value can easily have a representation in real market prices for the users.
Once crypto economy develops, who says we can't peg to a crypto coin instead of fiat?
Posted Using LeoFinance Beta
If I understand correctly, it can be re-pegged to anything. Having it properly pegged seems like the challenge. But you can peg it to whatever.
I would love to see it become re-pegged to a basket of currencies and commodities.
Eg.
10% Dollar
10% Euro
10% Swiss Franc
10% Gold
10% Silver
10% Platinum
10% Oil
10% Corn
10% Lithium
10% Copper
It wouldn't be very difficult technically. The harder part is just getting consensus on doing it and when to start. The starting date would determine the weight of each commodity (ie. find the weight of eg. copper that = $0.10 on that date, and that represents a portion of the peg from then on)
to complex never work. It should be super simple :D
Nothing changes for usage. To the user the only change is the concept (pegged to basket of commodities instead of USD), so it's like holding a foreign but still stable currency, like holding Euro even though you live in UK.
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if it should be a mix, it's like an index and very complex to peg.
Other currency pegs could be with smart contracts made. For example with collateral ones.
Sure and people need to agree it is worth this amount. Look HBD, it is worth 1 dollar in Hive.
Doesn't work. Do you think with a more complex product it would work? I can tell you, nope.
It would need a creation on demand mechanic.
The challenge, besides the technical one, is the representation of value for the user. They can't understand its current value easily. How many burgers do you get for 10 HBD?
Posted Using LeoFinance Beta
Why is that?
Posted Using LeoFinance Beta
Because of the following:
So, pegging HBD to 1$ is a sign of centralization. This means that people controlling the ecosystem probably live in the USA and don't understand what is going on in the other part of the world.
Considering the USD is the reserve currency and more than 70% of the global transactions are in that currency, I am not sure how that is centralized.
And I would saw that more than half the witness are outside the US.
As for Bitcoin, the problem with that is that it is deflationary. Anything that is tied to that will end up collapsing the economy.
Posted Using LeoFinance Beta
That's the issue?
That has nothing to do with pegging. It has to do with 'presentation'. HBD can be pegged to USD but presented on the front ends in whatever currency the user prefers (out of a list).
I have a suggestion for front-end devs then. When they have time, they can add a 'preferred currency' on their options page, and everything they express as USD on their front ends they will express in the 'preferred currency' going forward. Would that sound fine for you, if they'd implement it (because it's quite some work to do it, but it may be worth it)?
P.S. By the way, I live in the EU too, and I know both. It's a matter of habit.
Posted Using LeoFinance Beta
What if there where pegs for all fiats and you can choose the one you use?
Just a imput, I am not bulgarian dough hahah
Greez from Switzerland 🇨🇭 ,I would choose HBCHF hahah
Looking forward zo all new features
!BEER 🍻
Posted using Dapplr
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BEER.Maybe there should be more than one pegged coin, and the user can determine which one they are paid in, e.g.
hive backed Dollar
hive backed Euro
Hive Backed Yen
Hive backed pound
Hive backed BTC??
Posted Using LeoFinance Beta