Using the present 12 million in circulation (not including what is in the DHF)
Actually it is around 9M HBD in circulation!
HBD is in a great spot right now, with the debt level at almost all time low, at around 2.5%. The haircut is at 10%, so a lot of safe zone even with this extremely low levels of allowed debt.
With the upcoming hard fork and increasing the debt level, holding HBD with be much more comfortable for investors.
Hey @dalz, what is debt level? What is haircut? Could you please explain? I am a tiny pleb. 😢
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Debt is HBD supply/marketcap to HIVE virtual supply marketcap.
Haircut happens to HBD, when the debt increases over some percent of debt that the blockchain allows. Now 10%, soon 30%. Haircut means the blockchain wont give a 1$ price for HBD anymore when conversion happens. The higher the debt the lower the price of HBD. Its a protection from death spiral.
Details here
https://peakd.com/hive-167922/@dalz/the-haircut-rule-the-biggest-risk-for-the-hbd-price-or-historical-data-on-hive-debt-and-hbd-price
Awesome. Thanks for the explanation. I will read the blog to understand more of it. I couldn't get it from the whitepaper.
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Yes it will be plus there will be increased use cases forming.
This is all going to evolve nicely. Some big pieces falling into place.
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