The other day we discussed how HBD could help to initiate mass adoption of cryptocurrency. The basis of that thesis is the fact that HBD gives people in countries with a very unstable currency, especially against the USD, a safe haven. Since HBD uses the USD as the unit of account, people are able to hold that as a hedge against currency collapse.
This is a very important point for many around the world. It is often overlooked the exposure many have due to their nation's currency. When the USD strengthens, it causes massive problems in those countries. Unfortunately, the ones who take it on the lip are often the average citizens.
Cryptocurrency provides a massive switch in terms of control. Here we see a point that is often overlooked. Many just take for granted the woes of the present system as simply being the way things are. This might have been true in the past but it is changing.
We are seeing an altering in control mechanism. This is the major paradigm shift that is taking place. HBD offers a powerful solution for this very reason.
Always Open For Business
What do people in China, Cyprus, and Nigeria have in common?
All of them know what it is like to be prevented from getting to their money. At present, we see many regions of China suffering from a traditional banking crisis. The run on the banks got to the point where they are not even opening the doors. People cannot gain access to the money simply because those entities are insolvent.
If we think about Cyprus a decade ago, the situation was a bit different. People could access their accounts. The only problem was there was 10% less money than before. Everyone took a haircut. In other words, the money was simply removed.
This is something the Nigerians are familiar with. Money that goes into the bank does not always end up where it is suppose to go. Often, corruption is as blatant as simply claiming the money was never deposited.
None of this exists with HBD. With Hive, there is no control by an entity over the accounts. This is why there is no password reset. Centralization is not there. Also, when a deposit is made into one's savings account, the transaction is duplicated on over 100 unrelated computers around the world. At the same time, there are block explorers where anyone can view what was done.
It is a radical different from using a bank to store one's money. With this, the not your keys, not your crypto enters the picture. We are dealing with a situation akin to cash: lose the keys and the money is lost. It is no different than having a wallet or purse carrying physical currency.
Ledger Control
By now, most are aware how money is tied to a ledger. Basic accounting is paramount in this entire process. This means the only question is who controls the ledger?
That is one of the reasons banks exist. They are tasked with keeping control of said ledger. It is they who tracks all the transactions taking place globally and the balances in each account.
We see how this also puts the banks in a position of enormous power. From the perspective, we can see how situations like those mentioned above can take place. The control is granted to the banks.
Blockchain disrupts that entire sequences. It utilizes Distributed Ledger Technology (DLT). Here is where we find the distribution of power across the network to be vital. Is there someone in control?
Decentralization is a topic that comes up quite often. Sadly, as we are finding out with the bear market, the degree of centralization that still exists within crypto is disappointing. This is something that will have to change over time.
We know through the Justin Sun ordeal what it means to have a chain run by "sock puppets". This is no different than the present banking system. Haircuts can happen with simply a decision (and it did).
Hive learned from the danger of a pre-mine and got it out of the hands of any single individual or group. Now it is locked away without governance abilities. This removed a massive point of vulnerability from the system.
Thus, the ledger associated with transactions on Hive is in the hands of many different groups. It is setup in stark contrast to what many others offer.
We can see how this is the basic premise from which HBD is derived.
No Company Behind HBD
The final point that was recently exposed is the necessity to have no company behind HBD. Circle's actions this past week should put everyone on notice.
Following the orders by the US Treasury, Circle froze the USDC in the wallets controlled by Tornado Cash. Also, anyone in the US is tasked with the job of blockchain incoming transactions. Failure to do so will likely have that person's wallet ending up as blacklisted by not only Circle but also exchanges.
This is starting to sound very similar to the banking system.
Of course, we all want criminals to suffer the consequences of their actions. This is why the likes of Jimmy Fallon, Dave Chapelle, and Beeple are in trouble. All of them received ETH from the Tornado Cash addresses.
Naturally, they aren't criminals but their wallets could be frozen.
An anonymous user sent a slew of Tornado Cash transactions to high-profile Ethereum addresses on Tuesday in what appears to be a troll implicating them in a potential regulatory mess.
Affected wallets include those controlled by Coinbase CEO Brian Armstrong, TV host Jimmy Fallon, clothing brand Puma and a wallet created for donations to Ukraine, according to Etherscan. Prominent crypto figures such as artist Beeple and more mainstream celebrities such as comedian Dave Chappelle received ether (ETH).
With HBD, this issue does not exist. Even if the US Treasury wanted to assert some authority, who are they going to notify. Unlike USDC, there is no company like Circle to hold accountable for being in compliance.
Once again, as long as you have your private key, the HBD in your account is always accessible.
This is not something that many are offering. We are starting to grasp how many points of vulnerability still exist.
Nevertheless, the good news is that Hive is always open for business.
Another reason why it can help to spur on mass adoption.
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