RE: The Daily Meme #457!
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A dozen accounts earn half of the HBD interest. These 12 accounts really, really, really, really, really, really, really, really like earning interest rates that would be considered usary in a civil society.
The value of HBD is guaranteed by HIVE. The high interest on HBD is the best thing since the FSLIC guaranteed the Savings & Loan market.
Please, don't go into that tired debate about using a Federal program to guarantee high interest loans caused an entire market sector to collapse.
High interest rates guaranteed by HIVE is the greatest idea since the creation of the Credit Default Swap.
Since the conversion process gives HBD holders a dollar equivalence of HIVE after a three day period. HBD can be used as a currency.
The total amount of HBD on the market is completely superfluous. The 20% interest is simply there for the 1 percenters who want to receive high returns on passive income.
That is what I thought.
IF you want no effort rewards, buy and hold hbd.
Just leave the pool to us authors.
The HBD interest is not protecting the rewards pool. Oddly, the first effect of the HBD interest was to wipe out the alt-coins on Hive-Engine. One can prove this by looking at the transactions on Honey.Swap.
The primary buyers on HE were users who trade their HBD for HIVE to buy coins on HE. When the 20% interest hit, buying pressure on HE ceased and the HE coins experienced a free fall.
This reduced author rewards.
HBD is guaranteed by HIVE. When HIVE dropped into the $0.30s, many of the big HBD holders withdrew their HBD, converted it to HIVE and sold that HIVE on the open market.
The effect of high interest on HBD is to both reduce the price of coins on HE and the price of HIVE. Both actions reduce the value of HIVE rewards.
I am not an expert on whale games, but the high interest on HBD does not appear to have reduced the games.
They can only sell it once without buying more at the market rate.
Not a lot we can do about folks trading within the rules.
Time will dilute those accounts, if people save their hbd.