8 Use Cases of Stable HBD!

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HBD is Hive Backed Dollar, a coin that was intended to be pegged to 1 USD. This means that 1 HBD = 1 USD. Sadly the peg is broken and recently we have seen it getting pumped to $2 - that's crazy. Value of 1 HBD or any Stablecoin is supposed to be the same as the asset they’re pegged to i.e. USD but it's not, always.

A few weeks ago, @acidyo asked a question to Hive Community - "What kind of services/projects/businesses would you like to see more of with a stable HBD?" I decided to write a post about it but I was in a hurry, so I only left a small comment at that time.


Source: https://hive.blog/hive-173737/@finguru/qtosgr#@finguru/qtosgr

There were some amazing comments on @acidyo's post, so, I would suggest everyone to have a good look there if you are interested in the subject. In this blog, I am going to list down and expand the ideas I listed above. But before that, let's have a look at the advantages of HBD.

Advantages of HBD

  • Fast
  • Feeless
  • Decentralized
  • Transparency & Security
  • Combat Volatility (if Peg is fixed)

Gig Economy

Freelancers are everywhere! Anyone can be one with enough skill. The only problem is that you need to rely on centralized platforms which take a huge cut from the income you generate. Moreover, if you are like me living in India, you have to use PayPal or other payment service providers that would charge conversion fees and transaction fees. A stable HBD could solve serve the gig economy like a pro! We have a project (Hivehustlers) on Hive that has plans to create a gig platform on the blockchain and a stable HBD would help freelancers and clients to transact easily.

Alternative to CBDCs

CBDCs are centralized and they have an entry barrier while HBD doesn't. They are controlled by the banks and the governments. It will be just like USD which gets printed at their will. With HBD, people can become their own banks. You don't need to have a bank account to transact with HBD, just a Hive account would suffice which you can create for free.

E-Commerce

E-Commerce is another huge industry that we should tap into for a substantial level of adoption. It gives you the freedom to buy anything from the comfort of your home. HBD can be used to transact easily to purchase products and services online. Since both blockchain and e-commerce involve transactions, it's one of the best use cases of HBD. Since it's built on Hive Blockchain which has DPoS mining, it's fast and scalable.

Cross Border Payments

Want to transfer $10 Million from USA to JAPAN in 3 seconds without paying hefty fees at all? Welcome to Hive & use HBD. Just imagine how easy & affordable it would be if people start transacting through HBD or any other stablecoins for that matter. In simple terms, it saves time, money, and energy!

Forex

Stablecoins pegged to different currencies can easily be used to do foreign exchange. Just imagine if you can use your HBD and quickly convert it to another stablecoin pegged to EURO. No forex fees, no showing of passport while doing it. You can also do Forex trading as well in a decentralized manner through DEXs.

Trading

Oftentimes, while trading I keep some of the capital in stablecoins like USDT. Since it is such a common stablecoin used, you can easily find crypto-USDT pairs. Also, its price doesn't fluctuate so I don't lose any money due to the market volatility. HBD can be used by daily traders to take the profit out of their investments.

DeFi

Impermanent Loss is a big reality of DeFi. It occurs when the pooled assets fluctuate in dollar value. In DeFi Yield Farming, stable HBD could help folks pool in assets with other stablecoins because they limit price variations. It is quite popular among investors since they do not need to worry about their assets getting lost over time. On hive, we are already getting 5% of APR for holding HBD in the wallet monthly. A stable HBD would make room for other DeFi opportunities.

Salaries

I am sure many Hive users are getting paid in crypto for contributing to various projects running the ecosystem. USD is one of the most common currencies worldwide. On Hive blockchain, one can easily code the salary disbursement process which ensures the credit of salaries to all the employees at the first of every month or whatever timeline you decide. Sooner or later employees all over the world will have an option to get their full or a part of salary in crypto. People getting HBD payroll.

Apart from all these, I'd really like to buy Coffee from HBDs. That'd be really cool!

Do you think is there any other interesting use case for a stable HBD? Comment below!




https://leofinance.io/@finguru

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finguru#4062


Not financial advice. For infotainment purposes only.

Posted Using LeoFinance Beta



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21 comments
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Wow.. i never know HBD is as high as this. That is even more than POB. The advantages i am seeing here shows that it is an awesome coin.

Thanks for sharing i have learn something great today


Posted via proofofbrain.io

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Hey, just to clarify, these are the supposed uses of HBD if becomes stable. Right now it's not but HF25 might change that.

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Another important aspect of it, since Hive is/can be proof of brain/sweat equity, a stable HBD could allow people who want to remain fully anon, create an account, earn their way up and then allow them to speculate on Hive/Hive tokens through a stable HBD and potentially trade their way into big accounts without ever having to have gone through KYC on exchanges, etc. People could literally grow into dolphins, orca's while still remaining fully anon and in the future when Hive/HBD is more commonly used they wouldn't even need to go through banks/exchanges to use it as a mean for payment if most merchants accept it.

It's a freedom not many currencies give you, aside from miners but that'll still require investment in its own way.

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That's true. The freedom that comes with crypto over fiat matters the most. We still have so many people who cannot access banking services because of the regulations & KYC norms. Using HBD or any decentralized stablecoin for that matter could benefit such people, especially in developing economies.

On Hive, one can earn crypto without any financial investment and that's the best part. Also, I don't get 5% APR for putting my money in my bank account. In fact they suck more money from me. 😂

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I don't know this community is as great as this so HBD is more than POB . no no no this community is blessed one now I can say am one the great person

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(Edited)

It will be really nice to see hbd have this use cases. Hope the next HF makes it actually stable and this use cases find expression


Posted via proofofbrain.io

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Great points, I was talking about how HBD can be a super safe and stable options for savings or down market.

As we see more usecase we can see more stable peg I think. I see now it's up to 7% for holding but I still see some witnesses like @leofinance not putting any.

Be nice to see it around 10-15% as it then makes ceDefi almost not worth the chase but also offers more than any Cefi as well.

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I think @leofinance witness server is not actively updating the price as well.

10-15% would be awesome for the exact reason you mentioned. I will leave my HBD in the wallet forever. 😂

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Gaming is a big one. Having a stablecoin tied to the blockchain could really be a big advantage to the ecosystem for gaming. Attract a lot of developers.

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Oh yeah. Gaming is huge. Moreover, it might attract many youngsters, which is good for a social media blockchain like Hive.

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It would be nice to have a real stable coin. I'm planning to offer consulting services for crypto in the future and I think this could be useful in that line of business.

Posted Using LeoFinance Beta

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That sounds amazing man. Yes, you can easily suggest your clients to use a stable HBD over other centralized currencies.

Posted Using LeoFinance Beta

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Having a good stable coin is nice and I would like to add that you can get more interest on it than normal stable coins for just holding (7% right now I think).

Posted Using LeoFinance Beta

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You are absolutely right J. Even on DeFi yield platforms if you stake a single stablecoin, you don't get this much ROI everywhere.

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There is a great deal of effort being made by many HIVE folks to get HBD to keep its peg to the dollar. For some reason their are many that have been trying to counter this effort.

I will not hypothesize about the reason for the pushback on removing the volitivity that we see now with HBD. Maybe these HBD spoiling accounts can enlighten me?

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I have no idea why the pushback is happening. The HBD stabilizer didn't work during the pump but they say it would have been worse if those initiatives weren't there.

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