ok. maybe, i'm missing it but what do does making a whole bunch of new pegged coins do? aren't all major world currency essentially dollar backed coins now?
if you are trying to spread out risk then having a smaller circulation for each currency seems more manipulatable.
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Central banks often hold US dollars, but the current thinking is that it is best to let the currencies float against each other in open exchanges.
This is why there is an active Forex market.
Attempts to peg currencies have failed. The most famous failure came in 1979 when England was trying to maintain a peg between the pound and deutsche mark.
A piece of human filth named George Soros formed a cartel to short the pound. His group took a 3.3 billion short on the pound which broke the bank of England. George Soros made 3 billion in a single trade. He has used the money to advance far left causes ever since.
Central banks realized that attempts to peg currencies would open countries to economic sabotage and now let their currencies float.
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If HIVE depended on the formula alone with rates from reputable Forex exchanges; then there really wouldn't be any risk.
Remember, the risk comes from the number of coins that people are holding. Prior to the 20% interest, the market cap of HBD was less than a percent of HIVE. One could assume that the same would hold true of the Euro version of HBD.
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