If we cut the HBD interest rate, a few speculators may dump their holdings and cause a "crash,"

This is why they call it a death spiral.

I just looked at Ausbit Bank. It reports that the HIVE Marcap dropped under $100K and that the HBD/HIVE debt ratio is 11.487%. I suspect it will get worse.

If we cut the interest rate with HIVE trading at $0.123; we could expect a large number of investors to dump their HBD. It will probably be in a slow building cascade, we might see one million dump. This would push down the price of HIVE. Then we might see another million dump, which further pushes down HIVE.

It is conceivable that we would see investors dump 5 to 8 million HBD. Some would be sold on the exchange. Most would be converted to HIVE.

5 million HIVE converted at $0.123 would be 40 million HIVE.

The market cannot absorb 40 million HIVE.

This crisis that we are facing was foreseeable when the witnesses voted for the 20% interest rate.

The merchants of debt won this debate simply by putting everyone who disagreed down.

So, not only did they hurt the platform from a financial perspective, they turned what could have been an open market of ideas into a toxic place.

You Are Right

You are right. HIVE's best hope is that miracle occurs and there is a break out. HIVE could then start gradually reducing the debt.

Sadly, there are few people in the universe smart enough to carry off such a plan and they would receive resistance from whales.

!WINE