How HBD Can Help To Bring About Mass Crypto Adoption

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Often we do not understand how powerful something is until down the road. We are sitting on a powder keg yet do not grasp it.

This is the case with the Hive Backed Dollar (HBD). The base layer coin is overlooked by the masses, including those on Hive.

For that reason, we will delve into the situation a bit deeper, framing it against the backdrop of what the world is experiencing at the moment.

One of the keys to this is the massive price run ups the world saw over the past 18 months. While all are affected, few in the developed world step back to think about who is hurt the worst: the developing nations.

Those countries that have seen their currencies collapse against the USD are finding their economies obliterated. Actually, we can put Japan in this equation also. When the USD runs up against other currencies, it makes the impact of rising prices even greater. Not only is there the cost due to supply issues to contend with, now currency hits are added on top.

Here is where something like HBD could enter the picture.

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Stablecoins Provide What Other Crypto Does Not

Since last November, the cryptocurrency markets were a bloodbath. Most of the most popular coins and tokens saw a drop of 60%, 70%, even 80%. The last thing we should describe this as is a safe haven. It certainly failed as a hedge against anything.

This is not the case for stablecoins. Certainly, the media likes to point out Luna and UST as the example to counter this. However, those of us who looked at the situation understand that project had inherent issues which were not addressed.

Aside from that, many of the stablecoins remained fairly close to the peg. There was a bit of volatility along the way. Nevertheless, the solid one have been returning to it.

Even HBD, which suffered a huge pump is now sitting back at where it is suppose to according to coingecko.

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While a coin like HBD cannot offset the global run up in prices we saw over the last year, it can help to alleviate the exposure one has to his or her local currency.

People Understand The Dollar

One of the keys in this entire discussion is the fact that most people around the world understand the USD, at least in a unit of account. Most have dealt with it to some degree, especially in developing countries. While not official, many of those countries run a dual currency system. There is the native currency but also USD. Most will accept USD as payment for goods or services. In fact, there are cases where that is preferred.

Of course, the governments do not want this. For that reason, they seek to ban and confiscate what they can. The same is potentially true with cryptocurrency.

Here is where stablecoins can run into an issue.

Whereas there is a degree of decentralization to "traditional" cryptocurrencies such as Bitcoin, Ethereum, and Litecoin, stablecoins tend to be centralized. In other words, there are companies which are in full control.

This means that banning is a bit easier. When governments want to stop something of this nature, they have the means to exploit the vulnerability. Having a company to target is very helpful in this endeavor.

With HBD, there is no company. Who is going to be targeted? The coin does not even require centralized exchanges to carry it for accessibility. There is an internal exchange along with liquidity pools starting to open up around it.

Hedge Against Other Currencies

One of the adoption points for cryptocurrency could well be as a hedge against nations' native currencies. This could open the door for hundreds of millions of people globally flocking to stablecoins such as USDC and Tether. These are asset backed tokens which most likely will serve the purpose for most.

Of course, there are some authoritative regimes where even these could be a problem. Here is where HBD enters the picture. Since it is built on top of Hive's decentralized architecture, there is nothing that can be done to stop the coin. It is issued according to the code of the blockchain, which is running on more than 100 computers spread around the world.

Here is a point that many, especially in the West, completely miss. When you look at what happened to currencies such as the Brazilian Real, Turkish Lira, and Nigerian Naira.

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Against the USD, the NGN has lost:

  • almost 1/3 its value since 2019
  • near 50% since 2016
  • around 65% since 2014

This is where we see an ideal market for stablecoins. When we look into these currencies, we can see how HBD would be a much better store of value. Also, unlike the USD, HBD is a lot more accessible. Globally, there is a shortages of dollars as evidenced by the run up in pricing of the pairs of most every currency.

While people might not be able to conduct commercial transactions using HBD, they can at least hold some of the coins to protect against the currency fluctuations. In other words, this is a powerful way for these people to gain exposure to the USD without having to go through the issues of actually getting it.

Cryptocurrencies such as Bitcoin, Ethereum, and HIVE are going to have their volatility. They will moon and then crash. With HBD, however, we are offering a practical solution for those who have currency exposure simply by living in a country that doesn't provide access to US Dollars.

In Conclusion

Stablecoins could be the point of entry that can push cryptocurrency towards much greater adoption. A coin like HBD is powerful due to the fact that it is not controlled by a company while also not requiring centralized exchanges for swaps. This puts it in a power position.

Believe it or not, and contrary to the rhetoric, there is a push towards greater dollarization (at least as a unit of account). The challenge is that, with bank balance sheet limitation, there is a shortage globally. Stablecoins can help to push the tentacles of this further out, especially to those areas where the currencies are collapsing.

HBD is seriously overlooked for the inherent properties it brings to the table. This is something that anyone with the risk mentioned here should offset by holding some of their money in HBD. By placing it in savings, one also earns a 20% APR, also paid in HBD.

As many of these native currencies are collapsing, HBD is a fine alternative as a store of value. So far, in spite of short term fluctuations, one can usually get close to $1 worth of HIVE on the internal exchange.

That might not seem like much but if your currency lost 50% in less than a year against the USD like the Turkish Lira, this offers an oasis in a monetary abyss.

It is time to realize how powerful some of the stuff we have on Hive truly is.


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By placing it in savings, one also earns a 20% APR, also paid in HBD.

Probably currently this is the most attractive point of the Hive Dollar (HBD). I currently have $53.78 HBD in savings, and currently (seven days after the last interest payment), the current estimated interest is $0.194 HBD.

Screenshot_20220807-163232_Chrome.jpg

I had around $1500 HBD in savings in the previous few months, but I withdrew and sold that, and nowadays I am rebuilding it. So I am regularly transfer Hive Dollars (HBD) to savings. Often multiple times per day.

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I remember you were planning to use your HBD savings to get something.

Were you able to meet that goal, sir?

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Yes. I did. But by other means. Currently I have two four hours per day part time jobs, and a discount on my current rent. Originally I planned to buy and live in an SUV, but nowadays I can afford my current rent on my own, even in the winter, so I currently do not need an SUV. But I could buy one in a case of emergency. Thank you for asking.

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That is how it works. Put money in until it is needed then start again.

Nothing wrong with using it as it truly is: a savings account with a very appealing APR.

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I wonder how many won’t pay taxes on it and will have the IRS up there butts :(

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That's why my earnings in Hive are sent to HBD savings. I am not in a hurry, as long as cryptos are adopted on a larger scale, HBD is my backup.

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It is a great way for people, especially in those countries with currencies that are being blow up by the move in the USD to protect themselves.

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So you are right in my case as here it is difficult to spend or use cryptos in any way, what I do is to accumulate as much as I can for when eventually the adoption in scale that sooner or later will come.

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Just remember to save 30% for the Tax man!

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Good thing I put in both hive power and HBD. You know these few months I've been thinking so much on how to save money and avoid value of my money drops.

Been studying about Forex trading buying shares etc. I know I'm still not an expert on any type of investment or business but so far Hive is the only way I can see a future for now. Just hope this time I am right for a chance sigh.

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$HIVE has a lot more volatility than HBD. So if you are looking at protecting the value, HBD might be a better choice. But if you are speculating, HIVE has more upside.

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A coin like HBD is powerful due to the fact that it is not controlled by a company while also not requiring centralized exchanges for swaps.

So that's where the power of HBD lies.

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It is disheartening seeing the Naira lost its value to current extent, I see it getting even worse. HBD does come in here as an alternate to USD in form of stablecoin.
A personal goal is to keep saving up HBD so it can cover some monthly expenses.

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Exactly.

You have your money in HBD, and the Naira drops 20%, you come out ahead.

How hard is it to get USD in your country? Of course, even if you do, the danger is having it stolen.

With HBD, you are protected.

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How hard is it to get USD in your country?

I've never had to get USD in SA, I assume it not being easy and will raise questions enough to piss me off. I'd rather stick to HBD.

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Was chatting with some Hivers from Nigeria yesterday and they said they lost money in the bank. If they had kept HBD they would have been fine. HBD is already leading the way as more stable than banks. Let's do this!!

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Now you are touching upon another topic, outside what I was referring to but equally as important: the corruption associated with many of the banks.

Plus I guess I should have mentioned that with HBD, you can always access it. Many in China right now wish this was the case.

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Exactly what the Hivers were telling me yesterday. Thanks for keeping us on top of things Task.

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It will be good to be in a situation where one can have enough HBD in savings to pay for some things that they need. I know I’m having the investors dilemma, needing some liquid hive and the only way to get that is selling HBD. I’m grateful for what I’ve got saved so far and the things that I’m earning for sure. Just trying to save up as much HBD as I can. I’m at least consistently depositing HBD in the account I made for my son so that hopefully there will be a nice nest egg sitting there one of these days!

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I’m at least consistently depositing HBD in the account I made for my son so that hopefully there will be a nice nest egg sitting there one of these days!

That is not a bad idea. We know how compounding can really pay off over the long term.

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This is very insightful. I am completely up for it, can't wait to make use of the several altcoins on my decentralized application from https://atomicwallet.io/, in the long term. Anything that can change fortunes and make crypto accepted in most parts of the globe.

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I agree that flight to the dollar behavior can help us with flight to HBD behavior. I have a small stack of HBD on Binance and ow that it is present on both Binance and Polygon versions of Leofinance Defi with a functioning bridge, I will study the arbitrage opportunities more and see if I can add to my stack that way also.
I do enjoy our unique opportunity to stack HBD by posting on Hive and commenting. We are truly blessed in this regard for being active on Hive.

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Arbitrage is a great way to make some money if the numbers work out. It is also vital to helping keep the peg in place.

It is great that you are getting involved in that.

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The main reason people are not too moved about Hbd is because of what happened to Luna and most people have been trying to avoid anything that is too good to be real.

I believe stable coin like hbd that is fully decentralized can help currency like naira to reach greater height

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The deal with UST is completely different. To start, there was not really much of a use case for the backing coin. With $HIVE, we know there are a number of reasons to hold it.

Also, they didnt have any of the built in measures that HBD does.

So we are operating at a different level. It will take people a while to realize that.

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It’s not as different as you think. Come on, you know there’s risk friend. Don’t you? Not to mention it’s been made clear crypto APR rates much higher then regular banking rates will be taxed as income. The IRS is going to have a field day reading these comments years from now. I think that troll who keeps commenting it’s not gonna end well had a few fair points.

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@geneeverett

Mind linking where you saw this story? About the USA government looking at taxing this as income and not as regular #InterestRates?

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It’s not passed law yet. Just what is being discussed. Unfortunately they will make way to HBD. For now bigger fish to fry coming.

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HBD is a strong asset to have now more than ever with the 20% APR. Earning passively is key in order to grow and the HBD Savings ticks that box the most. Build up a great sum for the future, even as a pension fund in some cases!

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Just remember Dollar inflation is 10% so there goes half the gains. Then taxes are 30% or so off top so it’s not as great as advertised I’m learning.

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This is absolutely true. HBD has been quite reliable as a store of value at least against depreciation. The Pump was, of course, unfortunate. But the 20% interest is definitely something very few instruments as stable as HBD are able to offer at this time.

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Powerful thoughts here. The Naira example is really a case to attest to. We've lost a lot of value of our assets held in Naira over the past years. I wish everyone opens up their mind to receive this truth.

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Quite an interesting read I must say . . The fact it (Hbd)was overlooked for years left a bad taste in people's mouths. Now, that the attention is being given, the possibilities are mounting.

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I am putting a little bit more HBD into my savings each month and that is like an emergency fund. The 20% APR is better than what you get at a bank but I do expect it to drop over time as the HBD supply expands.

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(Edited)

Don’t forget it’s taxable, plus linked to a currency loosing value. I’m only getting into this now. I’m late to party so I’m learning as I go but the EU & USA will be coming for that 💵 in taxes.

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Oh i did find this very informative! I had no idea the kind of asset HBD was. Yes, I knew it had potential and that it was a great way to save, but I didn't know how much it really is. I think we Hiveans can be blind sometimes. May I please share the link to your post on Dreemport?

Dreemport is a growing Community of people who share their post for others both in and outside of Hive to see and also take out time to curate just five post a day from different people in and out of Hive as well. Just incase you want to know more about what it, it is better explained in this article: How Do I Use Dreemport? It's Easy

As always, your post enlightened me😊

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Wholeheartedly agree with what you said here, taskmaster4450. I wrote a piece on the LUNA/UST meltdown and the repercussions it had on the entire cryptocurrency space. Back then (late-May), I took note of how much "value" was contained within the Big 4 remaining stablecoins: USDT, USDC, BUSD, and DAI. The total value contained within those 4 assets totalled over $181,052,631,878 USD. Out of the total marketcap for Cryptocurrency assets of $1,130,701,364,598.82, those 4 coins make up 16%. Just imagine what happens when people flee USD Tether and USDC once they realize what's coming for them (stemming from the latest Tornado Cash freeze & asset seizure from the feds).

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