A few notes: The term APR stands for Annual Percentage Rate. The interest on HIVE compounds monthly. 20% interest that compounds monthly is about 22%. The fact that HIVE keeps confusing the terms "interest" and APR is extremely sloppy.

If the high interest rate was a great idea, then the act of raising the interest rate to 20% would have resulted in a rush to buy HBD which would have kept the price at or near $1.00. But we see the price keeps falling.

HBD is guaranteed by the market value of HIVE. HIVE is an intangible asset. HBD attempts to create a tangible asset from an intangible one. This type of game spooks serious investors.

When the witnesses started the high interest HBD experiment, the ration of the market value of HBD to HIVE was about 1%. Ausbit shows that it is over 4%.

The market knows that guarantee the price of HBD with HIVE reduces the value of HIVE. HIVE has been falling faster than BTC. Anotehr dip in the price of BTC, then we will see HBD holders panicking and converting their HBD to HIVE at a record pace.

The decision should in theory attract more investments in the space and perhaps give people a look at the Hive chain

If the theory was true, we would have seen a temporary bump in the price of HIVE in the last few months. They theory has proven false.

The high interest rates will have a long term negative impact on HIVE.

The theory was that selling HBD at junk bond rates would attract serious investors to HIVE. If that theory was true, we would have seen the results already. But the theory has not proven true.

Trading HIVE at junk bond rates appears to be having the affect that junk bonds have on corporate stocks. Selling HIVE at junk bond rates makes investors see our platform as junk.

Turning HBD into a junk bond turns the whole platform into junk. Read financial history. This type of garbage thinking has led to the destruction of numerous companies. The fact that HIVE is a blockchain does not change the fundamentals of investing.

!PIZZA

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