When you open a Hive account, you automatically create a Hive-based Dollar (HBD) wallet, which is automatically connected to the Hive blockchain. The Hive blockchain was created on May 1, 2019, and it launched with two cryptocurrencies: Hive and Hive-based dollar. Hive is used for sending funds and voting rights within the network.
After a major hard fork in 2020, the Steem tokens were forked out of the blockchain, leaving only Hive and HBD. When you consider that the main reason for forking was to create a stablecoin with low volatility, it is easy to see why developers chose to name their new token HBD (also known as Hive Based Dollar). Hive is the cryptocurrency that powers blockchain, while HBD is its stable coin. Since its launch, the currency has been pegged 1:1 with USD, making it a stable asset that anyone who owns both types of coins can use as a medium of exchange.
The Hive Blockchain is powered by a cryptocurrency which is called Hive. Hive is a token of the blockchain and can be used to power up and get voting power. It can also be staked to earn more Hive. You can also use it to buy services from the blockchain or trade on various exchanges.
Introduction to Hive Based Dollar (HBD)
Hive Based Dollar (HBD) is a stablecoin pegged to the US dollar. It can be used as a savings currency or exchange medium on the Hive blockchain. Hive is an open-source, permissionless blockchain network that supports smart contracts and dApps. It aims to offer better privacy protection than other blockchains due to its use of stealth addresses and ring signatures. HBD was created in May 2019 when Hive launched its Mainnet 1.0 platform, and it has been used as an alternative means of payment for transactions on the Hive blockchain ever since then.
Advantages of Saving in HBD
- It can be converted to Hive tokens and vice versa.
- It is a stablecoin.
- You can use it to buy goods and services, both online and offline.
The value of HBD coins is ensured because it is pegged to the USD dollar and backed by multiple financial institutions in countries like India, South Africa, Indonesia, Kenya, etc. The implication is that if you convert your HBD into USD Dollars or any other fiat currency at any time, then you can be sure of getting exactly what you paid for because there's no volatility with regards to value fluctuations like there would be with other cryptocurrencies such as Bitcoin or Ethereum which any companies or governments do not back."
Other Benefits of Saving in HBD
- HBD is pegged to the US Dollar. This means that you can safely store your savings in HBD as it will not lose value over time, unlike other cryptocurrencies prone to volatility.
- You can save and withdraw from your Hive Based Dollar (HBD) account through our partner banks without hassle. This means that you can easily spend your saved funds when necessary with just a few clicks on our app or website.
- You can use Hive Based Dollars for purchases at merchants who accept payments via the app or website and other Hive services such as membership subscriptions, donations, and more!
- Suppose you wish to trade or exchange HBD into another cryptocurrency like Bitcoin or Ethereum. In that case, we offer full support for this service through exchange platforms like Bittrex!
How great HBD is
HBD is not a cryptocurrency. It is a stable coin that can be bought on exchanges. HBD is pegged to the US dollar, meaning its value will not fluctuate wildly like other cryptocurrencies' values.
Hive Blockchain has created the HBL token system and implemented it in three parts: Hive Power (HP), Hive Money (HM), and Hive Base Dollar (HBD). The first two are utility tokens that can be converted into HBD. This makes it easy for you to get started if you want to find out more about investing in cryptocurrencies!
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