At first, I thought, why would anybody want to put in HBD to get back HBD because sHBD is in fact HBD, well, this is where it is tricky and if you're heavily into Hive, you'd understand the merits and how it effectively promotes holding Hive Debt - HBD.
HBD is put in to get back sHBD via a bond that is collateralized. The borrower still owns the bond, only turned it into a loan. Hence, any payouts are distributed to the bond holder.
To narrow it down, first, we have to look at the demand pressure it forces on Hive, because getting HBD means buying Hive!
This is only one piece of the entire puzzle. The goal is to drive value to both HBD and HIVE. By doing that the price of the latter should increase, which makes the entire financial system more efficient and capable.
Then again, as a Hive holder, you're effectively earning not only on the loans you take out but also on the HP you hold, this is where we're really look at abundance.
You are missing the Apiary. That is the receiver of the profits from the activity on the entire platform, especially the HBD in savings/time vault. This ends up going back into the hands of HP holders, further increasing the return for holding HP. This likely adds to buying pressure.
The Network prints this value, users sustain it by being eager to grab high instant loans that earns them interest, the real problem here would be building up liquidity for sHBD that doesn't go to sink the Hive price.
Liquidity is certainly an issue, even at the levels we are at. So it is an ongoing process to do that. Of course, this is not operating in a vacuum. We know there are other things taking place on Hive that will help to enhance the value of $HIVE. Will the market react, that is always an unknown.
The ability to provide a robust economy, wheter focusing upon commerce or finance, is dependent upon having enough HBD to power it. This means we are going to have to see higher $HIVE prices to allow for the conversion of what is needed.
This is why nothing is operating in isolation. It is all connected and has an impact upon other aspects of the system.
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