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RE: HIVE Strengthens HBD And Vice Versa

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@wildebunny
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An algorithmic stablecoin like HBD offers protection in the sense that it is backed by an asset: HIVE. The key difference is that this is not in a reserve account. In this instance, it is backed by the USD value of the market capitalization of HIVE.

HBD is not backed by anything. If the market capitalization of Hive drops, the value of HBD drops because forced on-chain conversion methods will give less than $1 HBD to preserve the integrity of the Hive.

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