It is a good start. But game developers cannot and should not count on 20% being “the number” forever. Eventually as the HBD gets big it becomes a drain of value from HIVE.
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It is a good start. But game developers cannot and should not count on 20% being “the number” forever. Eventually as the HBD gets big it becomes a drain of value from HIVE.
Disagree completely. HBD can actually be an enhancement of value to Hive. The idea that 20% is unsustainable is absurd in my view. If we get to the point where the economy is in needs of hundreds of billions of HBD, do you know what the growth rate needs to be to get to that point.
20% is sustainable if the growth rate of HIVE is much higher.
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I get it. If growth in HBD comes from burning HIVE.
I am more referring to much later, when 20% APR would mean having to raise debt limit.
I wasnt talking specifically about the burning of Hive. Instead I meant the growth of the entire ecosystem.
What, for example, the demand for commerce was 500 billion HBD? How would the 20% be unsustainable?
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Once we hit $500bln matching the demand for commerce, is the 20% going to be brought down or are we potentially printing up to $100bln subsequently? If the demand is no longer 20% per year growth? (Knowing some would be locked in DeFi, some would be liquid, and not the entire balance would be locked in savings for the 20%)
If a business is banking on 20% per annum perpetually, they have a business case using wrong assumptions.
Like you said, compounding us powerful.
As the number gets bigger and bigger, one of the bear markets HIVE may no longer be able to cover the value of HBD peg. Bull market expansion could get out of hand.
I don’t know where the ultimate equilibrium is. I like the idea you mentioned, now I am looking at the side that may pose a threat to HIVE itself.