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RE: My Thoughts on Creating a Bitcoin Fund From DHF to Partially Insure HBD Pegging

in LeoFinance11 months ago

I think it does make a lot of sense for it to be BTC. Looking at what Terra just did to support their stable coin is a great example of why we should. I think we have a good community that keeps an eye on everyone. It should be pretty easy to find the right group of people and hold them accountable.

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There are both advantages and disadvantages for using bitcoin. The advantage is that bitcoin doesn't introduce a vulnerability in the ecosystem compared to stablecoins (and doesn't make HBD look bad either). The disadvantage is that the solution to manage such a fund would still be centralized and, as a backing for HBD, it's not the best choice, since you'd have to sell bitcoin when it dips, instead of when it pumps.

That is true, but they were to make the buy before the next pump then it wouldn't really matter. Hopefully anyway. I don't think anyone will be having this conversation if they were to buy at $40K and then BTC finds new support at $60K or $70K. Any drop from there will likely still be above where they bought at. It will just depend on who quickly they can move if the proposal were to get approved. That is my thinking anyway.

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