One doesn't need to understand how it works to make use of it. Having a relatively stable coin in Hive is really useful.

A Short Story about Economics and Economists

(1) A very good friend of mine who once started and ran an international retail chain operating all over the world with 400+ stores got talking to a prominent Bank of England economist at a banquet in the City in the 80's.

(2) After talking a while he asked the economist the following question: what is the relationship between the interest rate which the Bank of England can put up or down and the UK£ Sterling exchange rate with other currencies?

(3) As he finished asking the question, the MC banged his gavel and announced "Please be upstanding for His Royal Highness....". My friend had to quickly move to his seat and never got his answer.

(4) He never did get that answer and he carried on running his large company and making huge bets on future currency swings based on his gut feel the way all of us have to.

(5) Years later he was walking to his (1st class) seat on a train and he recognised the same economist sitting with papers and charts and two colleagues.

(6) He went up to the now Governor of the Bank of England and said, you may remember, a few years ago I asked you what the relationship is between the country's interest rate and the value of the currency.

(7) Yes he replied, I do remember you and I remember I never gave you an answer! And I've thought long and hard about it in the intervening years!

(8/8) The answer to the question "what is the relationship between interest rates and currency" is I didn't know then and I still don't know now.

And that, my friends, is economics 101 and economic forecasting.

[There are plenty of theories on this, but no single answer]