Are u seriously saying prices haven’t gone up year to date at least 15%?
They definitely haven't increased due to an expanding money supply.
That is a provable fact.
Also one year of data is pretty irrelevant.
Watch what happens next.
Prices will come down.
That doesn't happen with actual inflation.
CPI is irrelevant and measuring supply shock.
USD hasn't lost any value; it's gaining value.
The dollar isn’t 100% safe the next few years and that’s what it’s based on.
No, that's not what it's based on.
It's based on Hive in combination with an oracle price feed and these interest rates.
If USD loses 50% of it's value we can just jack up the interest rate to 50% to make up for it.
In fact, the debt ratio would go down and we'd be in an even better spot than now.
This wouldn't even increase the debt ratio because Hive would spike x2 from the USD devaluation.
So no, a failing USD does not destroy HBD because "it's based off it".
See that? HBD does not depend on USD in any way. You only understand half of this issue.
This is leading you to come to some very incorrect conclusions.
HBD can be pegged to the price of anything.
We choose the USD price peg because it's the most stable asset in the world.
It still is, and there's no evidence to suggest this is going to change anytime soon.
jack up interest to 50% to make up for it? Come on are u serious? That wouldn’t work. You’d destroy it.
I couldn’t disagree with u more then this comment above. Respectfully of course. It’s just wild to me ur serious
can be pegged to anything? So overnight just totally change what it is? Seriously?
I respect you and don’t mean to come off disrespectful. But dude “ HBD does not depend on USD in any way.“
This sounds moronic to me.
Wanna make a friendly wager?
If you change the peg overnight U honestly don’t think there would be issues? that means it’s worthless or will be. I am certain now HBD will fail. Hive is the gold here not HBD. You take USD “peg” away get ready for total failure
Think of a good metric to bet on. We can lock up funds into a smart contract
Destroy what? What is 'it'? I'll assume you mean HBD price valuation because that is the thing we are printing. Except wait... what is HBD priced in again? Oh, yeah... it's priced in USD... the thing that nobody wants because it just lost 50%. But wait, there's more. The price valuation CANT be destroyed because it is Hive itself that maintains the peg. So it's Hive that we'd be destroying? Again, no. The 50% APR bump only occurred because nobody wants to hold HBD because USD tanked. In that case our debt ratio is less than 1%. We need to increase the APR so that people actually want to hold HBD/debt. It's not destroying anything it's bringing balance to the system. You don't fully understand these mechanics but you think you do.
Again, you're saying the system would be destroyed if we increase APR to 50%.
Wrong, the system is destroyed if we DONT increase APR to 50% in this situation.
The interest rate exists to provide elasticity to the supply and demand of the debt.
Hive is the central bank; HBD is our debt instrument.
When there is no demand for debt we have to stimulate demand for debt just like the FED would.
As in stimulus. As in drastically higher yields (in the FED's case lower rates because it's a debt-based system which is the opposite of crypto).
I couldn’t disagree more. That said it’s all respect ✊
But it’s clear to me we just disagree and we won’t agree.
Let’s bet! U down?
For sure I would say I'm in the minority here, so I can't run around disrespecting what the majority are saying. There's a reason why the majority view is the majority, even if I think it is misplaced.
As for the bet... yeah I'd make a bet, but I don't think there is any concrete thing to bet on. Wanna make a bet that Hive market cap would double if USD loses half value? I'll take that one :D.
Did someone say something about changing the peg overnight?
Why would be it overnight?
Changing the peg would only happen given the systemic failure of USD stability.
Which means there is some exponentially more stable asset we could peg it to.
Which asset would that even be?
Like I said, even in the case of USD instability, the yield can be modified to make the value proposition of HBD more stable than USD. USD is losing too much value too fast? Just increase the yield to HBD. Now HBD is more stable than USD.
We can't bet on something that's never going to happen, so I won't be locking money into a contract to rot.