Understand all of the above except this.
buy HIVE on Binance using euros
Where is their incentive? Why would I buy Hive on Binance to spend on something I could use dollars/euros for, instead of just doing it straight? So I get a discount? What happens when the discount ends? Can the discount cover my purchases? What happens if the 15% APR ends?
I show people that I pay, say, 29€ for a cheesburger and a large beer and I get 4€ back.
"What happens when the discount ends?" - actually the discount is the reason that I mention last. I explain other reasons first. They are detailed in these posts:
Some people are curious and want to try it out, learn, discover something new. They might load 20€, spend 5€ and then never use the 15€ again. That generates "breakage" revenue for HIVE.
Some people want to help the local economy because they care about the gentrification and desertification of inner cities due to high rents. Up to 4% of their margins are eaten up by card fees. Paying with HBD incurs no fees for merchants or for customers.
Some other people want to be in control of their money and also have a fallback solution when card payments don't work. Some people simply are sick of waiting for the waiter to come take their order and enjoy the possibility of ordering directly from a QR code when they feel like ordering.
But obviously some people will react like you do. There's no problem with that, we never thought we were going to bring 100% of the population to paying with HBD. But even 5% would make a HUGE difference for HIVE.
I'll finish with what is probably my favourite Satoshi quote:
Funily enough, he said that to no other than ... Dan Larimer, the architect of Steem :-)
The discounts only end when the downvotes start. apart from that, the discounts go on. Ideally we I want to see the APR on HBD lower so that we can give better, more compeitive rate loans to proven businesses using HBD, if the APR on HBD is 15%, we can only give loans to small businesses that have proven HBD revenue at 16% or above. the potential to flood the economy with HBD via commerce and legitimate businesses is far, far greater than the attraction of people staking for 15% APR on HBD, and so the lower the HBD base layer rate the better, the more we can out compete on loans to legitimate small businesses and provide much higher returns to creditors, while using the profits the businesses generate to pay back the creditors, and not HBD or Hive inflation
Can you walk me through the reason why giving out loans is a good idea? How do you deal with defaults? Do you have any means to enforce repayment?