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RE: Case For A Hundred Dollar Hive

in LeoFinance3 years ago

While it may be possible, I think we have tapped into most of the blog for rewards so we need to rely on more applications. In fact we would probably need quite a few more Splinterlands to increase the transactions on the network.

I don't think there will be many people converting HIVE into HBD because of the 5% tax. If they did then that would mean HBD would be way off peg and it wouldn't be a stable coin anymore.

Also what do you mean by people not caring about HIVE as content rewards? I still think HIVE and HP is still needed for the network unless people get resource credits paid for them by someone else.

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When you will be converting significantly high amounts of HBD, that 5% will become irrelevant. Because as you keep buying hive, the hive you bought earlier will have greater value in HBD. So it balances itself out and also be profitable.

What I mean about content rewards paid by Hive is that when network has grown to a certain point, layer two content rewards will be more interesting and communities will become self-sustaining. There will be no need for Hive content rewards. Hive will be needed to power layer to applications, communities, and economies and mainly used for RC purposes.

because of the 5% tax

I didn't know about this tax for conversion ! But 5% tax on a 12% apy token isn't really hard :')

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The 5% conversion means that it might be cheaper to buy HBD off an exchange rather than trying to buy HIVE and paying an extra 5% fee.

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Yeah ! I just looked at how to convert hive to HBD and I just learned that it only converts half of the amount !

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Yea it doesn't convert everything but I am not particularly sure because I only did that once when the peg was further up.

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