I think stable coins are a bad investment and extremely dangerous.

First, the very idea of a stable coin is an absurdity. All prices are in flux.

Attempts to peg currencies usually open up opportunities for currency manipulation. Every algorithm has a weakness that can bring a platform down.

HIVE guarantees the price of HBD. "Convert HBD" is a strange beast. It destroys HBD and creates an equivalent amount of HIVE in its place.

Imagine that the price of HIVE dropped to $0.25. Converting a million HBD to HIVE would create 4 million HIVE. The formula can put HIVE on a death spiral.

Pegging to the US dollar isn't all that smart. I live in the United States. The US dollar is mismanaged. The debt clock shows that the US is $30 trillion in debt and has about $170 trillion in liabilities.

The US has been printing money with wild abandon and currently has double digit inflation.

Stable coins are pegging to a currency that may not be all that stable.

Historic inflation in the US has been about 3%. The US dollar in 2022 has about the same buying power that the US penny did in 1913, when the US established the Federal Reserve.

The US Federal Reserve is currently mismanaged.

Stable coins are a stupid idea from the beginning and they are pegging to a currency that is having problems.

!WINE