HBD And The Eurodollar System

The Hive Backed Dollar (HBD) can be a game changer for Hive. We discussed this on a number of occasions. There is a reason for that. It is one of the areas that we see within the cryptocurrency market that is getting stronger.

Stablecoins are only growing. This appears to be where we will see the medium of exchange taking place. Much of cryptocurrency is viewed as stock, causing people to speculate. This means another option is likely required as a payment system.

Most are aware that the stablecoin market is getting a lot of attention from regulators. This is something that is probably going to result in the companies behind these projects falling under the banking regulations. Governments want to be in control and this is an area where they can do it.

What is at issue is the fact that Tether and USDC are backed by $! USD, or so they claim. Many express doubt that there is actually cash backing these tokens. Hence, why the banking regulations along with audits are likely to happen.

For that reason, another alternative is going to crop up: algorithmic based stablecoins.

image.png
Source

The True Global Reserve Currency

What is the reserve currency? Most will say the US Dollar. After all, since the end of World War II, this was the agreed upon currency. However, that is not exactly true.

The Eurodollar system started in the 1950s based upon USD that was in banks outside the US. This was more than just a currency. Instead, it was an entire system of lending, borrowing, collateralization, and cross border payments that was outside the reach of any government or central bank.

As a side note, this is what cryptocurrency is truly looking at replacing.

It is a system that was developed by the international banking cartel. For half a century it worked rather well. Nevertheless, due to the US sucking dollars out of the global economy, it is starting to suffer.

For us to see how this operates, let's use an example.

A company in Britain owes $1 million to a supply in Japan. This entity obviously has Pounds in its account. Thus, it goes to its bank to send $1 million to the supplier's bank in Japan.

You would think that the British bank simply converts the Pounds to USD, sends it to the Japanese bank, which then converts the USD to YEN and places it in the supplier's account.

Yet that does not happen in this instance.

Instead, the British banks calls the Japanese counterpart and offers $1 million in 3 month LIBOR futures that it has on its balance sheet. The Japanese bank has no problem with that and accepts that as transfer.

Upon receipt, the bank takes $1 million worth of YEN and places it in the supplier's account.

Notice how there was no USD involved in the transaction. Here we see a cross-border settlement payment that was handled in something other than USD. This is what is known as balance sheet (or shadow) banking.

In other words, the USD was nothing more than a unit of measure.

image.png

Hive Backed Dollar

The Hive Backed Dollar is backed by $1 worth of Hive. Many read this to mean that Hive is backed by a USD. It is not.

Much like the above example, the USD is just a unit of measure (account). It is not the medium of exchange. That is a different currency altogether.

HBD is backed by HIVE. In this instance, it is using a denomination that much of the world is familiar with. Here we see the similarity with the Eurodollar system. Familiarity is built in.

When one utilizes HBD, there is no USD involved in the transaction. Thus it is operating outside the scope of the regulators. There is no claim that HBD is backed by USD. In fact, we are emphatically stating that it is not. Instead, the claim on HBD is against HIVE. Every USD in the world could disappear and HBD would still be convertible to HIVE.

Realizing this shows how we have the ability to construct an entirely new financial system. Just like the international banking cartel did that, resulting in the Eurodollar system, we have the ability to create an entire global system following a similar playbook.

The key is that HBD is an algorithmic stablecoin meaning that it brings important properties to the table. We will cover them in another article.

Of Course, as other algorithmic-based stablecoins show up, we can see how this system can evolve and develop. Like most complex systems, it is done in a decentralized manner, going in many directions simultaneously.

image.png
Source

Commerce In The Digital Realm

Crytpocurrency is truly Internet money. It was designed to operate in this world exclusively. Since there is no physical counterpart, it is truly the money for the digital age.

This goes, however, far beyond just currency. Instead, we are looking to recreate the entire global financial system. The comparison to the Eurodollar platform is meant to show how expansive and integrated this really is. It is a lot more than just looking at national currencies.

Also, it shows how much growth is required in the stablecoin market. If we are going to maximize the expansion of the digital realm, a lot more money is required. After all, we are dealing with a near infinite environment which is going to need a great deal of collaboration to build out. In short, this requires money (people expect to get paid).

As we spend the next couple decades heading towards the Metaverse, we are going to see exponential impacts occurring regularly. This is going to create areas of productivity that dwarf what the Eurodollar system created. That funded, for the most part, the physical realm.

In the digital world, everything gets larger. The numbers that we see are going to be completely mind blowing. Simply extrapolate out what we saw the last 20 years and move it forward on an accelerating basis.

Ultimately, the monetary system is going to have to keep pace. This is where a coin like HBD can enter the picture. It is up to us to build upon it.


If you found this article informative, please give an upvote and rehive.

gif by @doze

screen_vision2025_1.png

logo by @st8z

Posted Using LeoFinance Beta



0
0
0.000
41 comments
avatar

pixresteemer_incognito_angel_mini.png
Bang, I did it again... I just rehived your post!
Week 94 of my contest just started...you can now check the winners of the previous week!
4

0
0
0.000
avatar

The key is that HBD is an algorithmic stablecoin meaning that it brings important properties to the table. We will cover them in another article.

I really like the fact that HBD is part of the hive Platform as a stablecoin which is really a nice move to invest and with the 12% interest attached to it even make it more extraordinary to invest on

0
0
0.000
avatar

It is a platform that needs to be expanded in my opinion. Hive has a tremendous opportunity in the fixed income market that it can take advantage of.

Posted Using LeoFinance Beta

0
0
0.000
avatar

Every USD in the world could disappear and HBD would still be convertible to HIVE.

What a super power, having this as an asset is still one of the best things to have, and having the opportunity of earning 12% APR is truly worth every effort put on Hive.

0
0
0.000
avatar

It is very interesting being part of the becoming Metaverse. I have a good feeling about HBD too. Another great article Task. Thanks!! Go Hive!!!

Posted Using LeoFinance Beta

0
0
0.000
avatar

The key is that HBD is an algorithmic stablecoin meaning that it brings important properties to the table

Everytime i see the HBD i just look at the possibilities of making the Stabish coin more stable. It would be a great deal as time goes on. Still always boils down to the use cases. Another reason why upcoming projects need to start putting it in plan.
Its crazy how things blow out in crypto. The next couple of years/decade would be unbelievable.

!PIZZA

0
0
0.000
avatar

This post has been manually curated by @bhattg from Indiaunited community. Join us on our Discord Server.

Do you know that you can earn a passive income by delegating your Leo power to @india-leo account? We share 100 % of the curation rewards with the delegators.

Please contribute to the community by upvoting this comment and posts made by @indiaunited.

0
0
0.000
avatar

This post really make sense, am very happy the way Hbd is moving now because is part of hive platform it is very good to invest in it.

0
0
0.000
avatar

I agree that our algorithmic stablecoin is an important tool for our future and I'm glad to see the interest in improving and growing it. I'm sorry to bug you here, but I have sent you a message on discord a few days ago about something I'm excited to get your feedback on before I say anything about it publicly. Can you please get in touch with me there when you have time. Thank you!

0
0
0.000
avatar

Never got a message.

taskmaster4450 #9768

Posted Using LeoFinance Beta

0
0
0.000
avatar

Oh! I've been messaging taskmanager. Same person right? I'm messaging you at taskmaster4450#9768 now

0
0
0.000
avatar

Whoever is directly controlling the V2K told me to kill myself.
They told me if I killed myself now it would save the lives of countless others.
Saying the longer I wait to kill myself the more people will suffer.


They are reckless and should have shown the proper media what they had before taking me hostage for 5 years. I know there are many in prison that dont deserve to be there because of this. Your stay in prison will not be fun @battleaxe and friends. People are going to want you dead when they find out what you did. I hope you die a slow painful death. You sick mother fuckers.

https://peakd.com/gangstalking/@acousticpulses/electronic-terrorism-and-gaslighting--if-you-downvote-this-post-you-are-part-of-the-problem

Its a terrorist act on American soil while some say its not real or Im a mental case. Many know its real. This is an ignored detrimental to humanity domestic and foreign threat. Ask informed soldiers in the American military what their oath is and tell them about the day you asked me why. Nobody has I guess. Maybe someone told ill informed soldiers they cant protect America from military leaders in control with ill intent. How do we protect locked up soldiers from telling the truth?
0
0
0.000
avatar

I’m just about to finish my post on the progress of my hbd savings.

The Hive Backed Dollar is backed by $1 worth of Hive. Many read this to mean that Hive is backed by a USD. It is not.

I touched on this too. We could decide that Hive is denominated in Euro and HBD will automatically be made up of 1euro worth of Hive. Cool stuff. Like a hydra

0
0
0.000
avatar

That could be true but no point. The USD is something people understand as a unit of measure. Plus much in the world is priced in that, not EUROs.

Posted Using LeoFinance Beta

0
0
0.000
avatar

This is eye opening - thank you for explaining exactly why HBD is different from stablecoins such as USDT; it is backed by algorithms and HIVE instead of a physical US dollar, which puts it outside the realm of government regulators. That makes all the difference in the world!

0
0
0.000
avatar

This is a very inspiring and extraordinary post that I came across today.

0
0
0.000
avatar

This is a very great content, which makes me understand it is a stable coin, what gets me worried is why don't hive grow more in dollar Instead of 1$

0
0
0.000
avatar

My hbd are going to hive tribes at the moment i need to build my VP on hive second layer tokens

0
0
0.000
avatar

I wonder if any Hive developer can make domains like eth guys. You know those ethdomains that are out there who get mapped to the eth wallet? Like HBD domains for the hive users. This way the wallet can be mapped to their name? I am sure that would be a good project.

0
0
0.000
avatar

Thank you for the explanation of HBD. HBD is not back by USD. I believe soon HBD is going to be notice like USD and Hive will bull like other currency.

Posted Using LeoFinance Beta

0
0
0.000
avatar

Now I wonder if the unit of measure will ever change. For some reason, I can't really see it going away because most of the systems around right now use this measurement. Besides a few crypto people who look at things in satoshi, I haven't seen other people focus on a different unit of measure.

Posted Using LeoFinance Beta

0
0
0.000
avatar

Contrary to what the Bitcoin maxis think, it wont go away from a long time.

It is a generational thing and 3 generations of adults right now are conditioned to think of things in the USD denomincation.

Posted Using LeoFinance Beta

0
0
0.000
avatar

All the names we use for currency-- dollars, pounds sterling, francs, yen, yuan, pesos, zloty, etc.-- were themselves based on weights of gold.

Then came a time when the names were divorced from the weights of gold to become what we know them as today.

So the change in unit of account can happen again; we just don't know what the new name will be. It could be CNY/RMB, something totally out there, or it could be a return to commodity-based money with gold as the favorite.

Posted Using LeoFinance Beta

0
0
0.000
avatar

what would you recommend as the best strategy for someone who is just starting out or has very little money?

0
0
0.000
avatar

I'm seeing this post in June 2022, and much has happened sine the post was published? Has anyone given you (or the rest of us) any sort of answer? Depending on your needs, I have 2 answers.


If you mean HBD, tokenized blogging would be a start, and you already do that. After accumulating even 250 HP, there should be some decent HBD in the account. I would suggest this plan:

  • Take that HBD, convert it to HIVE, buy SWAP.HIVE at the DEX, then add liquidity in a diesel pool which offers plenty of rewards.
  • Each month plow the LP rewards back into the diesel pools so that your position in them grows and therefore your LP rewards.
  • Do this a few times, then one month take the LP rewards to buy HBD or whatever else you care about.

Then repeat the cycle.


If you mean something offline, there is still a need for precious metals (the Eurodollar before the term was ever made up). For this, DCA whatever you can spare for coins which used to circulate (best bet is pre-1965 USD and pre-1968 CAD; different nations have their own cut-off dates, and they may not be available); even culled coins or dirty coins are just good for this purpose, they just need to be genuine. Rounds and bars are great for this purpose too. Modern bullion is OK, but they come with high premiums; only buy if nothing else is out there.


You may have already known this, but I hadn't seen anyone else reply.

Posted Using LeoFinance Beta

0
0
0.000
avatar

I found this post through ListNerds. I don't understand the economy that much tbh, but I really like The HBD aspect of Hive economy as the stable-ish coin.

Great post, even I was able to understand it. Which is if you know me, you would understand how big of a compliment that is lol.

Posted Using LeoFinance Beta

0
0
0.000
avatar

The beauty about HBD is it is in our eco system so easy to just keep staking little by little each and every day. Over time I can see monster accounts holding huge HBD which is fantastic for Hive in general.

Posted Using LeoFinance Beta

0
0
0.000
avatar

I really enjoyed this rundown of various stablecoins. So many types out there, and I learned more about HBD which I thought I understood. Thanks for getting me over to your column from ListNerds! :)

Posted Using LeoFinance Beta

0
0
0.000
avatar

I fucking love your articles on the HBD. Amazingly written, damn i have so many of your other HBD articles bookmarked!

This one is another gold star write up!

0
0
0.000
avatar

I hardly convert my hbd to hive

0
0
0.000
avatar

Oh wow, I always thought that hbd was backed by usd.
Thanks for all your blog posts task, I always learn something new.

Posted Using LeoFinance Beta

0
0
0.000
avatar

I've heard of Eurodollars over the years, but to me it was just some term like Petrodollars. It was an abstract concept to me until this day until I saw your example of 1M USD-worth of UK Pound Sterling being used to buy 1M USD-worth of Japanese Yen. Both currency quantities had to be worth 1M USD, but USD itself was never involved.

At the time the Eurodollar system came into being, it was based on USD held in European banks outside the American banking system, is that correct? Then over time banks in Asia, Africa, The Americas, and Oceania entered this system but the name "Eurodollar" stuck, right?

Now I see why it will take a long time for USD to fail even if the Petrodollar is replaced by the Petroyuan (or even Petroruble) tomorrow. Eurodollar will have its own set of problems, but it's just too diffuse to be a concern any time soon.

Posted Using LeoFinance Beta

0
0
0.000