The answer is fairly easy. HBD pays 20% interest which compounds every 30 days. Best of all, the price of HBD is guaranteed!

HBD is so much more attractive than HIVE that one should invest every HIVE penny in HBD.

Of course this is not good for the blockchain. The system guarantees the HBD with HIVE. One can convert HBD to HIVE.

There is a scary thing called a "HBD haircut" which will take place when the market value of HBD grows to 30% of HIVE. Ausbit Bank says the HBD marcap is currently about 6% of HIVE.

When the price of HIVE drops, investors need to be prepared to withdraw their HBD from savings and convert it into HIVE.

So, you see, every time there is a market correction, investors will pull their HBD and convert it into HIVE.

In both of the last two corrections investors converted over a million HBD to HIVE.

The conversion destroys the HBD and mints shiny new HIVE in its place.

In both market corrections, the system generated about 2.5 million HIVE that investors dumped on the open market.

The HBD price guarantee dumps huge quantities of HIVE on the market during down cycles.

I suspect that this pattern will continue.

Investing any money in HIVE is rather absurd. Not only does HBD have a higher price. Since the system guarantees the price of HBD with the value of HIVE, HIVE (and all of the alt-coins on Hive Engine) are extremely bad investments.

I suspect that the destruction of HIVE will take place in waves; I've been putting my earnings in HIVE during dips and putting it in HBD whenever the price is stable.

I am scared of the haircut and plan to pull my HBD if the price of HIVE drops below $0.3 .

!WINE