Are you converting Hive to HBD?


The recent Hard Fork 25 added the ability to convert Hive to HBD. This feature gives the community to help push down HBD when it gets over $1, but it comes at a cost, 5% to be precise.

When you convert Hive to HBD there is a 5% fee charged by the blockchain. When there is a situation like there is right now, where HBD is trading over $1.30, the 5% fee is insignificant.

The conversion does take place over 3 days you receive the HBD immediately and the remaining Hive collateral at the end. The delay is to prevent market manipulation. The 5% fee is essentially burned in the process creating a potential upward pressure on Hive and downward pressure on HBD.

There is no guarantee HBD will stay at $1.310 throughout the conversion, in fact it is almost guaranteed it won't. It may go up resulting in a higher yield or go down reducing the yield. As long as the median stays above $1.05 it is a profitable operation and provides a direct benefit to all stake holders.

I am not your mom, so I cannot give you financial advice, but I do recommend learning about the new Hive->HBD conversion feature and how it may potentially benefit you.

If you do decide to use this feature, make sure you understand the risks involved.


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