The system uses HIVE to guarantee the price of HBD. Users can convert HBD to HIVE and dump the HIVE on the market. During the last dip, users converted a million HBD to HIVE. The market had to absorb about 3 million HIVE.

Ausbit says that the market cap of HBD is currently 5.4% of the HIVE market cap. If the price of HIVE dips; then we will probably see another million HBD converted to HIVE. A million HBD converted to HIVE would produce what? 4 million HIVE that the market needs to absorb?

Using HIVE to guarantee HBD adds to the volatility of HIVE.