The Hive Backed Dollar - An Improving Investment
The Issue
One of the problems that I had with the Hive Backed Dollar when I first started on Hive was that it seemed to be wildly inconsistent though it was meant to be a stablecoin pegged to the $1 mark.
This is what it was looking like over the last year:
Seeing price jumps from double the intended value all the way down to 13-14% below the intended value brought a bit too much volatility to the HBD as a savings mechanism.
However, over the last few months, things are starting to really come together for the stablecoin alongside an increased interest rate to 12% APY on HBD held in savings.
Here is what it has looked like:
This is of course still not quite ideal, but things are getting much tighter than they have been in the past and it looks like this is getting closer to becoming a "safe" investment by the day (safe in quotes because all cryptocurrency carries inherent risk).
So should you be investing?
I am of course not qualified to give investment advice, but I feel confident that if Hive is to become a successful and pivotal part of the web 3.0 revolution, the Hive Backed Dollar has an important role to play. Thus, it is in the best interest of the ecosystem to put measures in place to control the stablecoin's volatility as well as possible.
If the interest rate of 12% is to remain consistent and the HBD can start to mirror UST or other stablecoins in valuation (holding the peg) then I believe this will be a great place to park some savings in the future. There is still work to be done, but I am a supporter of the Hive Backed Dollar and believe that receiving half of your blog post earnings on Hive as HBD will prove to be a source of steady passive income if done right!
Let me know what you all think of this stablecoin and what needs to happen for it to play an important role in the cryptocurrency space.
Come talk basketball on Dunk Social!
Come talk comedy on PeakD community - Com3dy Central
Links and Connections:
Join me on Splinterlands exploring blockchain gaming
Get paid for your search results with Presearch
Follow me on Twitter/Instagram: @ Rob_Minnick23
Hive: @ rob23
NEW TRIBE: @dunksocial
Join me on Torum
Check out Cake DeFi for staking rewards
Bitcoin Cash Apps: @ rob23
Join me on Publish0x to talk crypto
Who I am:
My name is Rob and I am a prospective law student with interests in cryptocurrency and blockchain. I have enjoyed my time thus far engaging with Web 3.0 and am looking to continue learning more and sharing what I learn through my experience
