RE: Some Thoughts On Hive Backed Dollar (HBD)
That is certainly possible. However does that happen in reality with different market dynamics in place.
There are a few assumptions like the idea that the market low will be the same in the future. It might but then it might not. Also, there is the idea that one person will be able to get a hold of a massive amount of HBD. Right now, without many use cases, that makes sense. However, if there is hundreds of millions of dollars in commerce taking place along with layer 2 options that use HBD for DeFi or whatever, is that still viable?
Also how does the need for Resource Credits, as the chain gets more active, affect the ability to convert Hive? Could this minimize the amount of HBD that is created, negating some of this discussion anyway? At the same time, does that put in a "floor" on the price of Hive dropping?
All things to consider when looking at this equation. Hard to tell where the vulnerabilities could crop up along with where they will.
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