RE: RE: HBD A Scam? Most People Do Not Understand This At All

avatar of @taskmaster4450le
2 min read

To inflate by 20% and keep the USD-Peg must have a price at the end of the day...

The peg is maintained by the conversion to $HIVE. 1 HBD can be converted to $1 worth of $HIVE. So that is taken care of as long as the haircut rule is met. If not, the production of HBD shuts down.

But regardless of size, the question from where the inflation is earned is a legitimate one.

Yes that is true. The key is to built the utility on HBD. There are a number of areas this needs focus: payments, derivatives, collateral, investing and funding.

Currency needs to equate into economic productivity. That is where things get interesting. Have to build an economy.

Look at LEO. It inflated 60% last year and the price was heading accordingly.

That is true but it is a value capture token. Leofinance did not have the growth to sustain that much increase. HBD is actually backed by an access coin.

It is why building is so important. None of this operates in a vacuum.

Following this argument, I could create a stable coins yielding 100% inflation per year and it would take also ages unless it is as big as the USD.

You certainly could. And if you build an economy around it, you could keep that pace up for decades. Of course, simply creating a coin with nothing else does not equate to sustainability.

Would you coin go to funding business and financial expansion? Then you have to chance to keep things growing. That means having the necessary people with skills and an outlet to produce.

If not, the coin will end up like Venezuela which creates currency without the ability to expand economic productivity.

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