There is no correlation between the money coming from the outside and the price of HIVE. Just become people buy HBD that does not mean the price of HIVE has to head down.
In fact to get the amount of HBD required, someone is going to have to buy and convert a lot of HIVE.
Theoretically, they should balance each other off. However, markets do not operate on theory. My feeling is the push for HIVE will drive prices up and not drop based upon the equal conversion. Markets tend to run out of lock step.
So what you say about the cancelling each other is valid but not likely in practice. Markets contain emotion which really sends things awry.
How?
If the marketcap of HBD goes above 10% of Hive Marketcap (currently 2,490%) or the price of Hive falls below $0,2361.
Those are the rules yes... the 10% debt will be 30% soon, while HIVE at 23 cents although possible, probably will not happen soon
If lots of speculation money comes in, we may be surprised. But I'm sure the witnesses can adjust course with any change in market conditions.
In the meantime, time to go all in on HBD.
There is no correlation between the money coming from the outside and the price of HIVE. Just become people buy HBD that does not mean the price of HIVE has to head down.
In fact to get the amount of HBD required, someone is going to have to buy and convert a lot of HIVE.
Posted Using LeoFinance Beta
Exactly, to buy HBD, they need to buy Hive which will then be burned when turned the HBD.
Will that bid up the price of Hive or will hive/hbd ratio cause the price to fall?
Or they will balance each other out?
Theoretically, they should balance each other off. However, markets do not operate on theory. My feeling is the push for HIVE will drive prices up and not drop based upon the equal conversion. Markets tend to run out of lock step.
So what you say about the cancelling each other is valid but not likely in practice. Markets contain emotion which really sends things awry.
Posted Using LeoFinance Beta
Burning it is not mandatory, can also be traded in the internal market.