I definitely agree that stable coins are becoming more popular. When the market is shaky and there is a bear market it’s a good place to be and then buy back at lower levels.
That’s why I think Hive is a good place to be during a bear market, especially now with HBD bonds. Not only can you protect the value of your money but you will get a 12 percent increase.
But I have a question(s) 🙋♂️ How stable is the HBD ? If We are in for a long bear market and not many people investing in Hive and it drops to 10-20 cents, as in the same time the bonds keep printing more HBD, can the HBD price keep a value that is close to one USD ?
Hive Bonds are not an actual thing. That is something that I put out as a discussion topic.
What you are referring to is the savings on HBD. People can invest their HBD into the savings account and earn 12%. The payout is based upon HBD, not based upon the price of HBD. So you get .12 HBD per year for each one put into the savings account.
HBD is worth $1 worth of HIVE on conversion. Obviously the peg is not exact as we continually see. There does seem, however, to be a floor on HBD. It is holding up fairly well, only down 5% below its peg in spite of the sell off. That is what happens with liquidity.
The HBD stabilizer keeps running so as to put a "floor" in on HBD (or so we believe).
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Thanks a lot for taking the time and explaining this, it is much more clear now :)