I think there is kind of an upper peg but nothing on the reverse right? If HBD is like $0.9 like it was when we woke up, we know HBD is a bit cheap and if people wanted fiat value, they can store up some HIVE for fiat.
Posted Using LeoFinance Beta
I think there is kind of an upper peg but nothing on the reverse right? If HBD is like $0.9 like it was when we woke up, we know HBD is a bit cheap and if people wanted fiat value, they can store up some HIVE for fiat.
Posted Using LeoFinance Beta
There are four mechanisms that peg the price. Two downwards, two upwards.
That sums it up ideally. I wish I had this comment when I wrote the post. It would have fit in very nicely.
Posted Using LeoFinance Beta
If HBD is .9 when one wakes up, the opportunity to buy HBD for 90 cents worth of HIVE and then "sell" it through the converter for $1.00 worth of HIVE is in play.
This is where the market mechanisms (those who arbitrage) can help to hold the peg for what I can understand.
With the next Hard Fork, that will exist on the high side too.
Posted Using LeoFinance Beta