First of all I should know about haircut term,

The haircut is a fail safe hard coded in the blockchain.

The HIVE blockchain uses the conversion process to guarantee the price of HBD. The HBD to HIVE convert button destroys HBD and mints a dollars worth of HIVE. The HIVE to HBD convert button destroys the HIVE and mints HBD. (This process has a 5% fee).

This stabilizes HBD. Investors convert from HBD to HIVE when HBD is < $1.00. They can do the opposite when HBD is > $1.05.

The haircut is a fail safe built in the blockchain. The haircut cuts the value of HBD. The haircut triggers when the reported market cap of HBD is over 30% of HIVE. IT used to be 10%. The purpose of the haircut is to prevent a scenario called a "death spiral."

My content has some good facts.

Since I invest in HBD, I look at ausbit HBD monitor regularly. This monitor showed that the market cap of HBD dropped by well over a million HBD in the last two market dips. It appears that investors sold about 10% of their HBD during the dips.

At the end of the year, investors converted over a million HBD to HIVE at a price around $0.33. This is three million HIVE.

In the last dip, they converted over a million HBD to HIVE in the price range of $0.40. This is 2.5 million HIVE.

People invest in HBD when HIVE is strong, they pull their money out when the market is weak.

This places a huge down pressure on HIVE.

The second fact I point out is that current maximum HBD is around $58 million HBD. We can't get to $58M because investors will panic before then.

This is not enough for HBD to become a market leader in the stablecoin arena.