It sounds like a radical idea, but hear me out. We’re here on HIVE and most of us are aware of the potential for Crypto to solve a lot of our Financial System Problems. Many are also aware of the problems with Fiat Currency and how Inflation and Currency Debasement is destroying our purchasing power. We have our own Stablecoin here, called the Hive Backed Dollar...yet it’s pegged to the US Dollar which is inevitably going to lose it’s Reserve Currency Status in our lifetimes...and maybe even quite soon.
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So what should we do? Should we just have our Stablecoin ride the USD into nothingness or should we at some point look to peg our Stablecoin to something else that might hold it’s value better? Well, Precious Metals have stood the test of time with regards to being a store of value long term, so why not peg our Stablecoin to Silver or Gold? If that’s the way the USD is going to go then why not do this sooner rather than later so we can get ahead of the curve?
I first suggested almost 7 years ago that Instead of STEEM DOLLARS how about STEEM GOLD? and if you want to take a trip down memory lane, that post is a decent read back when we were called the STEEM blockchain. The comments in particular are fun. Since I made that post, the Debt is worse, Inflation is worse and we now even have BRICS talking about creating a new currency backed by Gold as an alternative to the US Dollar. Is the writing on the wall getting clear enough yet?
Without getting too technical this would be a pretty easy change to make. Currently the Witnesses supply a feed price of HIVE vs the US Dollar so that the Conversions between HIVE and HBD stay correct. All you’d need to do is change that feed price to instead be HIVE vs 1 Gram of Silver. It’d otherwise be seamless. Silver has just reached a price of $1 US Dollar for 1 Gram of 999 Silver so a change right now to Re-Peg HBD to 1 Gram Silver would not cost a single holder of HBD a cent because the valuation would be right on par. It could be a straight swap and then going forward we’d have our Stablecoin pegged to a proper Monetary Metal instead of some shitty Fiat Currency which is inevitably headed to the dustbin of history.
It sounds like a radical idea, but is it really? At some point Crypto people are going to have to practice what they preach and kick the Fiat Currency link once and for all. Maybe I'll have to make another post in 7 years time to remind everyone that this idea has been on the cards for a long time...