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RE: Some speculation on HBD price movements and how it impacts proposals

in #hive3 years ago

I could do what so many on here do and blow smoke up your arse and tell you how amazingly insightful and clever you are for doing this, but I'd be lying to myself and you.

True peg coins are backed by fiat currency and use a computerised weighting system to keep the peg where it should be, hence the reason USDT never fluctuates more than about half a cent. HBD is not like that it is a peg coin in name only and no matter how many of these little schemes you do, the price will be driven by speculation.

You talk about why it's good to have a good stable trading coin, that very well may be true, however if I had millions of dollars to invest in crypto and I wanted to use a stable coin then I sure is shit wouldn't use HBD because there is no proper mechanism in place to protect the price.

Ultimately I don't understand this obsession with keeping HBD at a $1 price, let it find its level and let's call that the "peg". HBD is rising because Hive is rising, speculators are buying it in hope of making more money in the future. Simple.

For anyone who's interested, here's a link to how a true stable coin is created.
https://www.investopedia.com/terms/t/tether-usdt.asp

Cg

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I'm quite familiar with how USDT works. But you seem to believe there is only one way to create a stable coin. I'm quite sure you're wrong. But I don't see the point in endless debates on the subject, when it's not that difficult to test pegging mechanisms, which is what we're going to do.

Debate is always important especially in an environment like this, whereby people are trying to gain favour of high HP holders.

when it's not that difficult to test pegging mechanisms, which is what we're going to do.

Perhaps I am being unobservant, because I did not realise that is the case. Which seems fair enough to me.

Cg