"The true promise of cryptocurrency, self-custody of your cryptographic assets, in your crypto wallet, protected by your keys, while investing in decentralized finance for yield or earning."
"Hive solves this."
I have written an article called "What is the Hive Backed Dollar?", which explains that Hive Backed Dollars are a stable coin on the Hive blockchain, backed not by the U.S. Dollar, but by one U.S. Dollars worth of Hive.
Thus there is no mysterious dollar reserve to worry about or humans to trust, just trust in code/smart contracts and a reserve you can see online on the Hive Backed Dollar website built by @dalzHBD Stats.
But in this short article I wish to bring up another point about Hive Backed Dollars which is how HIve Backed Dollars help cryptocurrency live up to it's idea state: your crypto, in your wallet, earning yild, in a trustless fashion, with the full cryptographic protection promised by cryptocurrency/
First, cryptographic protection,
...the protection of your wallet with a 23 place alphanumeric password so secure it can't be guessed by a computer running a password guessing program for over a hundred years.
Second, most cryptocurrency investment, called decentralized finance, requires you surrender your cryptographic protect to participate.
.How? by requiring that you give up your cryptographic security over your cryptocurrency assets by moving them out of your wallet, where they are protected by your 23 place alphanumeric private key.
For example Terra Luna, 3 Arrows Capitol, Gemini Earn, Celcius and other decentralized finance vehicles cruptoinvestors used in 2023, which failed and those investors lost their money. They had sent their cryptocurrency to the wallets of thise financial projects to invest, giving up the cryptographic security of their wallets.
This is a common requirement in decentralized finance, but not here on Hive
Third, Hive Defi or decentralized finance is different.
The Hive blockchain has smart contracts which allow you to invest in decentralized finance, while keeping your cryptocurrency safely protected in your cryptocurrency wallet.
In the case of Hive Backed Dollars, your Hive Backed Dollars are in your wallet, protected by your private key, and you deposit them into your wallet savings account to earn 20% yearly yield. Your cryptocurrency stays in your wallet, protected by your key or password.
Thus Hive Backed Dollars in your wallet savings account is an amazing financial tool that to few people talk about.
The most important thing to remember in cryptocurrency is not your keys, not your cryptocurrency. Which means anytime you transfer your cryptocurrency from your wallet to someone else's wallet for an investment, they now control your cryptocurrency, and in some ways it belongs to them, until they decide to give it back to you. But if they are like Terra Luna, 3 Arrows Capitol, Celcius or even FTX they can keep your crypto money, and there's nothing you can do about it.
Last Words
Thats all there is to talk about about this point.
It's simply an investment which allows you to maintain control over your cryptocurrency.
You don't have to send it anywhere or to anybody.
Articles you may want to read about cryptocurrency wallets include:
