Any attempt to stabilize Steem Dollars meant increasing volatility in Steem. Potential gains in Steem dollars must be transferred to Steem/Steem Power holders and potential losses must be transferred as well. There is an inherent link between the two where increased stability of SBD means increased volatility of Steem.
Ned Scott didn't like Steem Dollars, he had the above insight and was correct about it. He saw this undermining Steem, which he saw as the preferred currency long term.
The insight still applies to Hive and Hive Dollars. As we are currently seeing Hive Dollars stabilized, the DHF is converting HBD to create Hive, dump it and buy more HBD. We got the benefit of that in the bull market when we eliminated millions of Hive from the supply, but in order to maintain a HBD peg - and to profit from the market mispricing it, we must accept sharper drops in Hive price as well.
There is a consequence of this - Hive cannot be money, it can only be a form of equity in the system. If we focus on having a monetary instrument in Hive going forward - it must be HBD, not Hive.
