RE: HBD Interest Payouts for January 2022

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We are going to need a lot more HBD if this is to be a serious stablecoin. That said, it is moving in the right direction at least.

Those who are putting it in savings are the core people on Hive. This is where it has to come from. Great to see more accounts involved. Over time, it is great for smaller accounts to earn 12%. That can really add up with compounding.

Hopefully next month the 150th spot is up to 15 HBD.

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Getting more HBD is actually very simple. Have you seen my Case For A Hundred Dollar Hive post. It was inspired by your post about HBD as wealth building tool. Anyway, in the post I make a case that we can create as many HBDs as we like based on how much USD we are willing to convert to HBD, without losing value in USD even though such actions will cause Hive prices go up. The only obstacle I can think of is the small fee for converting Hive to HBD, but that can be recouped with a right strategy and significant sums of USD. Below is a simple scenario how it can happen.

12% annual interest rate on a stable coin that is pegged to USD, one of the strongest fiats in the world and the world reserve currency is not a small thing. Now consider I am an investment fund manager with $10 billion dollars under my control, and I want to allocate 10% of my funds to very low risk but high return asset like receiving 12% compounding interest annually. That means I have $1 billion dollars to invest in HBD. But the entire Hive network is billion dollars worth and it only has $24 million HBDs in circulating supply. Where am I going to get $1 billion dollars worth of HBD.

I know the secret that nobody knows, I can buy as many Hive coins as I want or are available in the market and immediately convert them to HBDs. Of course this would require a certain strategy, not to move the Hive prices too high too quick. Since I am only interested in HBD, what price I buy Hive doesn't matter. I will be converting every purchased Hive into HBD. So each USD worth of investment will retain its value in HBD. In fact, if planned my strategy properly I will end up buying my initial HBDs at lower prices and make quick profits from the beginning.

By the time I get to the point of spending all of $1 billion to buy Hive and convert to HBD, price of Hive will go so high that its market cap will be in tens of billions of dollars already. Once my colleagues get the word of what I am doing, they will find out this is a good strategy for them as well. They will allocate some of their funds too. And soon enough one Hive coin will be worth $100 and perhaps keep goin up higher, because many more fund managers would to be in action as well.

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(Edited)

Conversions, reward payouts, DHF (including hbdstabilizer), and interest are all four ways that the HBD supply can grow.

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