RE: RE: Hive Backed Dollars (HBD) FAQ
Cheers for getting involved and asking these questions!
I’ll add my 2c to @deeanndmathews answers here in the comments and then continue editing and adding to the body of this post.
Where can I spend HBD?
In my opinion, the key to HBD isn’t that you can spend them.
It’s that you have a permissionless, censorship-resistant alternative to storing your US dollars.
While you can spend them via some Hive-linked services like HiveList and ListNerds, I don’t think being able to spend HBD is that big of a deal.
Honestly, I don’t even think of them as a cryptocurrency in their own right.
Instead, I see them as nothing more than US dollars.
Use HBD to safely store the value of USD with no counter-party risk such as banks or collateralised stablecoin options, then swap them to other coins/withdraw them back to fiat in order to spend.
Is there a market for HBD holders to buy and sell? If not, what projects are building one?
Check out what HiveList is doing in terms of allowing any eComm store to accept HBD.
”The Hivelist.store is the online retail and services marketplace where anyone can shop and hire services using cryptocurrencies - Including HBD!”
Super underrated project that deserves more recognition.
What non-KYC exchanges allow HBD trading?
I really just think HBD is a regulatory and administrative landmine for centralised exchanges.
Nobody is going to want to touch a truly decentralised, permissionless alternative that is obviously going to face media scrutiny in the future (gotta take the good with the bad when it comes to censorship-resistance).
So honestly, we just need to forget about them and focus on building out functionality on the internal market to trade HBD against HIVE and then DEXs to permissionlessly swap to whatever else.
I recently did a how to buy HIVE without KYC tutorial and the same goes for the derivative bHBD.
Why should I hold HBD instead of HIVE?
You should hold HBD instead of HIVE if you think that the price of HIVE won’t go up by 20% in the next 12 months.
So you can earn 20% on HBD in savings with zero price risk.
Or you can expose yourself to price risk (both up and down!) on HIVE, and only earn 10ish% via curation.
Obviously there are some other social advantages to powering up HIVE, but if you’re approaching it purely from an investment point of view, that’s how you’ve gotta think.
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