The recent drop in crypto prices pushed the Hive debt up with a feed price at 17.3 USD.
The amount of HBD in circulation remains stable around 11M HBD and the support price has dropped under 6 censt, at 0.059 now.
The simbolic meaning of this numer is that it is the old haircut limit where HBD gets devalued. If we didnt push the debt limit to 30% where it is now since the last HF, HBD would have now lost its peg.
Certainly seems to make sense that the debt limit was raised to 30%. With a 0% reserve requirement since March of 2020 for the traditional banking system we are in a situation where we are levering against real value.
Hive really is it's own economy.
$0.059 is a good price for HIVE. I hope that this price will be as late as possible, because I have HBD staked :)
Can you explain what "Hive Debt" means as indicator?
It shows the ratio between hbd and hive market cap. If the debt reaches 30% hbd is no longer valued at 1$
If HIVE's debt reaches above the new 30% debt level, would the DHF still keep pumping out payments to DHF proposals even if HBD is worth less than $1 by that time?
Thats up to stakeholder, if they vote proposals, then yes
Interesting, I look forward to your HIVE inflation report when debt hits 20% and 30%.