Since HBD is paying 20%. This is a better and safer return than any other investment in the HIVE Ecosystem.

I really dislike the high interest on HBD because I think that selling HBD at junk bond rates is bad for the ecosystem.

The problem is that we use HIVE to guarantee the value of the HBD.

In my last post on this subject I pointed out that there is now just under $5 million in HBD savings and HIVE is on track to paying a million dollars in interest on these HBD savings.

HIVE guarantees the price of HBD with HIVE. If users converted 1 million HBD at $0.25, then they would create 4 million HIVE for the HIVE market to absorb.

A big problem with HBD is that HBD investors are risk adverse and are likely to pull their funds when the price of HIVE is low.

This puts a downward pressure on HIVE.

The high interest on HBD is most likely the reason why HIVE has been falling at a rate faster than BTC.

!BEER