RE: RE: HBD: A Safe Form Of Money With Little Counterparty Risk
The ability to create HBD is based upon the ratio. In your scenario, there is no guarantee that when the bear hits, the price will drop far enough to hit the haircut level.
Also, there is a presumption, at that point, that we are looking at the need for more HBD. Perhaps the market is satisfied for the time being with the amount of HBD in existence.
For example, if there are 250 billion HBD out, is that enough? Only the market will know.
As for RC pricing, certainly that can go up. If there is huge demand for the blockchain, there will be the needs for RC. Of course, going back to your first question, we see the need for HIVE in that scenario. So it all ties together.
What you cite is another reason why many feel that we need some decentralized second layer solutions to take some of the non-essential the base layer.
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