from the outside looking in , 20% seems to be a ridiculous rate to expect, any saver at any time would be over the moon to lock in 10% interest rate. Risk cannot be eliminated it just goes somewhere else , 20% signals to me that there is risk hiding somewhere in the system and would make me hesitant to park my money
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The risk is not hidden, once you know where to look, the haircut rule shout be easy to understand: If the debt ratio grows too high, you are never going to get $1 of HIVE if you convert (and noone is going to buy for $1 on the market).
I believe you are misunderstanding the haircut rule.
That's all well and good but anyone can see we've been at 20% for over a year during the entire bear market. If it was going to collapse it would have done so already. Leaving it at 20% for even longer just proves that it's even more stable than we even thought to begin with. All the red-flag metrics are telling us we are still very much in the clear. Again the whole, "We should change it because that 'sounds right' is not valid in my opinion."