It was only a week ago that the Hive Dollar dipped down to $1.1. From what I observed in the different channels I'm lurking in, it seemed that most considered the HBD pumping to be more or less over. After all, we've continuously bought back more than 2 million HIVE tokens through the @hbdstabilizer, and the next HF expected in less than 2 months will introduce reverse conversions that will most likely also add new selling pressure.
Well, it seems someone is determined to say "Hold my Soju" (a popular Korean alcoholic drink) and keep the pump going. Thankfully for us, this is only good news (contrary to what some will have you believe).
Are you buying more Hive Power?
Higher HBD price means more HIVE is being bought back by the @hbdstabilizer every single hour and returned to the Decentralized Hive Fund (DHF). Naturally, this has made many people confident that the price of HIVE is going to benefit, as the liquid supply goes down and thus makes any new demand for HIVE more likely to cause a significant and lasting price increase (although we should not forget that merely reducing supply is only one part of the puzzle. Adding demand is not only also a requirement, but far more important).
However, it is not only the @hbdstabilizer that has a unique opportunity of buying and locking away more Hive, we do as well. The price of HIVE is still low historically speaking considering the market cap of crypto. Yes, it is higher than where it was in the fall, but still only 10% of the USD value in the previous bull run when the market cap was far lower. Combining the low price of HIVE and the high price of HBD, now is a great time to acquire and stake more HIVE Power with the rewards you get from your posts.
Myself, I prefer to sell the HBD on Bittrex and then buy back the liquid HIVE there, thus contributing to adding more buying pressure there. Of course, you can also use the Internal market on Hive as well.
Don't compain later about others having an unfair advantage
For as long as I've been around (which in one month will be 4 years), people have complained about earlier adopters than themselves having an unfair advantage. But guess what, it will only get harder to acquire more Hive Power as the inflation is going down (current HIVE inflation is 7.5%, compared to the 9.5% it was at when I joined). If we're successful in growing this platform, then in one year will look at the time when HBD was pumping and be jealous of how much HIVE Power users today could acquire with a higher than the intended purchasing power of their earned HBD.
So are you buying HIVE and powering up? I hope so. In recent months I've also witnessed discussions and concerns about governance on Hive by some users. Additionally, there is no shortage of opinions about "what stakeholders ought to do". Well, having more of our active and committed userbase today be able to buy and stake more Hive Power thanks to a higher HBD is a perfect opportunity to build a stronger Hive middle class. So hopefully, you're doing so and encouraging others to do the same.
At least I know I intend to win tomorrows Hive Power Up Day ;)
Fredrik
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A nice way to wake up with some HBD pump! Glad I held on to some - with HivePUD coming tomorrow, it is a good chance to load up. Probably won't be competing with you though haha!
I bought almost 100 HP a few days ago with my HBD. Sadly I am missing the $2 pump but I see that happening every now & then until we fix the peg with HF25.
I hope others have capitalized on this situation and raised their HP in double. These pumps are, although crazy, they give you an opportunity to grow your account and one should not miss it by any chance.
I will be taking part in my first #HPUD and it's going to be amazing.
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Figures! I took the majority of my HBD to market yesterday. I should have just waited 24 hours! Oh well, I still got a pretty good rate. I can't really complain I guess. This is awesome news for those who are looking to get some liquid Hive for HPUD tomorrow. We should see a lot of great power ups!
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Nobody has a cryptal ball.
You did better than you would have done so normally. Thus you did well on the trade. There are times we can always do better. Then there are those who are worse.
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Yeah, for sure! I noticed it went up to $2 and I said to myself, "aw man". Then I quickly got over it and moved on with my life!
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Good advice from you @fredrikaa I believe that the HIVE will also have a rise in price too,the powering up of HIVE will also make it grow ...
LOL I am still waiting for my first payout to buy some hive. Hopefully, I catch it before it goes down again lol. Just started a new journey here...that's why.... :)
Welcome to Hive and we look forward to you getting involved.
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Thanks man but.... I've been around from a long time. Since 2018, since steem days hahaha... Much appreciated ;)
I know I did trade it. But usually when I do it goes higher after. Could we see $3 next ? $5? or maybe $ as for SBD?
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LOL well if you get a nice return on your HBD, take it and dont worry about it.
It all adds to your holding.
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I also think it's important to points out in general, like you have , that unless hbd is at 1 or less it's always worth going to market to convert.
It's broken.
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You are propagating an inner-hive conflict.
What opinions prove commitment?
Why no chill?
It's just some decentralized buzz.
I'm not buying Hive unless the conversion rate is 3 Hive to 1 HBD or better. HBD can pump as high as it wants if Hive pumps as well then it's not helping us leverage HBD
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It is very interesting to know these little details to follow and be able to further develop the HIVE project
You bring up great points.
The time to add to HP is when the opportunity presents itself. We are seeing a chance to add a little more HP due to the peg being so amiss.
I didnt think about the inflation being where it is. Are we at 7.5% now? We could even be a bit lower.
Either way, every year the inflation rate will decrease. Plus the HF will likely bring the price of HBD back in line a bit.
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I missed the best price as I set some HBD to convert. Just part of the game and I do okay. Got a load of HIVE to power up tomorrow.
Read the comments, very interesting. I am just going to take your advice and sell my little bit of HBD to Blocktrades for HIVE. I am simple-minded that way. I will leave the economics to those much more adept on the topic.
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Swap it while it's hot!
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It's $1.6 now...
aaand, I missed this chance|
I guess it started as an intended effort to stabilize the HBD and ended with the opinion that buying back HIVE with HBD to both add buying pressure while also returning excess value to the fund had more benefits to stakeholders than the remaining proposals.
I don't mind returning more back to the DHF when the HBD is high.
That is an excellent point. The peg is not working but there is a ton of money heading back into the fund.
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The idea that the stabilization part might not work and the benefit would be achieved anyway via added demand for Hive was already recognized when the original proposal was made, if not earlier. See this comment for example