If HBD is pegged to the $ - What if the US dollar goes to πŸ’©...?



I've made no secret of my love for HBD (might have something to do with the current 20% interest rate 😍).

The prospect of building up a stack of HBD and then living off the interest...ahhh, one day...

I started to think about the potential risks and problems with a 'Live off HBD-interest someday' strategy - here are some risks that sprang to mind:

  • what if the Hive/HBD peg breaks?
  • what if Hive dies?
  • what if there are probs offloading HBD into $?
  • what if the witnesses slash the interest rates?

These are all valid risks, but I started to get comfortable that these were improbable/manageable in the short to medium term, for the potential upside...

Did I mention a 20% annual interest rate?!

But with the recent wider market turmoil and banks' impending insolvency coming to the fore, a new and far BIGGER risk started to materialise.

A risk so big, that I hadn't even bothered to give it too much thought.

It's just too improbable.

Until recent events made me rethink (everything)...

What is this big, giant hairy and scary risk?

That the US dollar gets hyperinflated and turns to (virtually) zero (read: πŸ’©).

A stupid thought. I know.

But we've just had two mega-global banks go bust in a week. And by the sounds of things, there's a whole queue waiting behind them.

And in today's global, media-frenzied world, it wouldn't take much to trigger a global bank run, and then it would be like watching dominoes fall.

The bank runs would entail massive money-printing by central banks (the US Fed leading the charge) in a (feeble) attempt to avert global wipe-out.

And then it would be too late for the $ (and the €, Β£ etc). Worth pennies in the pound at best.

What would be the impact on HBD?

HBD is designed and coded to be pegged to the US $ and so it would inevitably follow it all the way down...

Some might argue that this is a ridiculous and outlandish point to worry about and I hope they are right.

Problem is that there are some very wealthy and knowledgeable individuals who are forecasting the dollar's demise. In the not too distant future.

So maybe I need to rethink my HBD (stacking) strategy, again!


If the USD was heading down the toilet, we could do a hard fork and redefine 1 HBD as being worth X Satoshis of Hive. 😁


yes, I guess so, wouldn't that be the ultimate flip - seems absolutely bonkers, yet weirdly poss from here...