The financial world is experiencing a crisis that is very reminiscent of that of 2008 due to its trend: when the market suddenly eliminates liquidity, small financial institutions begin to fail, forcing governments to intervene economically to save them, by printing money and increasing public debt. A dog chasing its tail.
created by @doze
If a bank goes bankrupt, customers' money vanishes, and they will not be able to withdraw it from the branches in time. This is centralization: if the bank makes money from your money, it doesn't recognize anything, on the contrary it asks you to pay commissions, if it loses, it keeps your money.
Hive drastically solves the problem, allows you to manage your capital freely, allows you to earn significantly if you choose to keep your $HBD and $HIVE in the blockchain, locking them for a certain time (3 days HBD and 12 week HP). This mechanism serves to make the network more secure and ensures a balance in the system.
The rewards we receive are not free money but a prize for your contribution to the growth of Hive: transactions and operations carried out on the network such as voting, post publication, comments, are essential for the blockchain. So nothing is given as truly free but all our rewards are deserved and proportionate to our capital.
The banks out there are feeling the pressure of the recession, and they force you to live in fear that sooner or later your money will no longer be yours. Here at Hive, you are guaranteed $HBD to pay off well above the average rate of inflation with a 20% APR%! Furthermore, no one will ever be able to block your $HBD, each user is the sole owner of their wallet and you can manage it 24/24h, 7/7days!
$HBD is risk free?
No one in the world can guarantee you the security of the custody of your capital. Even keeping money at home carries a risk threshold, probably higher. $HBD is proving to be much more reliable than other stablecoins with exponentially higher caps yet the $1 peg has been much more stable.
Things for $HBD will get more and more interesting and Hive Savings will increasingly be the best place to store your money.
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The system guarantees the price of HBD with HIVE. The value of HBD comes from the fact that one can launch the convert process which will destroy the HBD and generate a dollars worth of HIVE after 3.5 days.
To protect HIVE. the system has a hard cap that says the market value of HBD must be less than 30% of HIVE. Were the market value of HBD to rise above 30%, the system would trigger a haircut.
So, HBD is not immune to bank runs. Investors in HBD need to watch the HBD to HIVE ratio. Ausbit Bank has a page which shows the current values.
The gauge is currently at 6%. It had jumped over 7% during the last market dip. HBD investors converted about $600,000 HBD during the dip.
This was bad news for HIVE as it generated a million HIVE that the market had to absorb in a down market.
So, while HBD is a great investment at 20% interest. It is not completely risk free. PS: I am not a big fan of the interest rate because it has the potential to destabilize HIVE. HBD holders will lose their money if HIVE falls to low.
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Thanks for this valuable comment. I understood something more about the HBD. !CTP
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20% annual profit is a great deal for everyone. I think bank not give this percentage of profit to anyone. Thanks for sharing valuable informations.
Agree !HUG
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I think one can't find a better option than HBD savings with 20% APR. Banks are no longer a safe place to put one's money. And governments bailing out banks will just bring more problems.
We're only at about 7% of the 30% debt ceiling. Not too much to worry about regarding HBD at the moment.
Credo che detenere HBD sia un buon investimento attualmente e lo sarà anche se si dovesse scendere ad un APR del 10%, chi Ti garantisce quei rendimenti altrove?
Credo inoltre che il portafoglio Hive sia un modo sicuro per conservare i propri risparmi, posto che poi ormai di sicuro non esiste davvero più nulla; essendo possessori delle nostre chiavi però siamo sempre a disposizione dei nostri capitali che, tra l'altro, non sono fermi ma comunque regalano una rendita e, inoltre, contribuiscono alla crescita ed alla stabilità dell'ecosistema Hive.
A mio avviso è una situazione win-win su Hive tutti vincono!
@tipu curate
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I often talk about HBD as a stablecoin and as an investment, but in my crypto friends I notice distrust of HBD and I don't understand why. !BEER