I think that the larger the supply of HBD in circulation is, the the great the stability of the stablecoin shall be both in terms of its longevity and its price range.
You are viewing a single comment's thread from:
I think that the larger the supply of HBD in circulation is, the the great the stability of the stablecoin shall be both in terms of its longevity and its price range.
This type of thinking has led a large number of monetary systems to ruin. The banks expand the monetary system thinking that if their monetary system gets large enough, it would be too big to fail.
The process of ballooning the monetary supply actually introduces greater systemic faults into the currency.
But lets get back to HIVE. When the HBD supply is small, it is easy to manage the peg with a few simple algorithms.
When the supply of HBD becomes large, the algorithms start to fail. This is why the designers of HIVE built a haircut in to the system.
BTW, if you looked at the data from @geekgirl, you would see that the top 13 accounts hold over half of the HBD. Movements by the top accounts appear to have dramatic impacts on HIVE.
Indeed. But there is an increase to the quantity of HBD in the system right?
It's not done in 200% quantities per year, the growth in available tokens is gradual right?
As for the top 13 accounts holding half, almost everything in Hive and the world seems to be that way. But with constant movement in a "free" and non-resteictive movement there is a chance for the pie to be shared more evenly.
An example I see in my very humble viewpoint is the people I have onboarded from the start of the year.
Out of 10 accounts the bottom 5 add to less than half of number 4, 4 is half number 3 and number 1 among students is half my HP. Together, all 10 students now equal my HP... after some months.
Three months ago all of them together would not have been a quarter of my HP.
Only by having a lot of supply and more stakeholders can that sliding scale start to stabilize.
In a years time, instead of the top 13 accounts having 50% of HBD, the top 20 should have 50%, maybe the top 30.
Ten years from now the 50% should be held by hundreds of accounts. This would then lead to more stability as 200 individuals are less likely to upset the entire infrastructure than 13 accounts when some of them move.
Percentages in HBD interest payments don't mean anything. These numbers can changes at any point, and only by what financial decisions people make. Only those who are willing to risk to hold their money in HBD are receiving interest payments. This shouldn't matter anyway, because HBD is not a governance token.
The more important thing is the distribution of Hive Power, which makes the Hive blockchain more decentralized and stronger.
You are spot on!
That is true. But this can only happen with massive amount of interest to mint HBD. To mint HBD they people would have to buy massive amounts of Hive and convert to HBD. For that to happen, some whale would have to discover what HBD is and what it offers as an investment/savings instrument.
I'm pretty sure that as our numbers increase, there is a critical point where our combined internet footprint will attract big notice.