So many people have asked this, 'WHY IS HIVE PUMPING?'.  Is it splinterlands?  Well, I'm sure that is helping.  Is it @lordbutterfly's marketing?  Again, probably helping.  Could it be we are getting confused with that other Hive-named project again?  It can't hurt!

But the real reason is.... [Hive to HBD conversions!](https://peakd.com/hive-167922/@ecoinstant/how-to-print-money-with-hive-and-hbd).

I did a whole guide, linked above, on how you can get in on this amazing arbitrage opportunity, so check that out to learn all about the button-clicking technicals.  Here is a testimonial from someone who followed my advice:


![image.png](https://files.peakd.com/file/peakd-hive/ecoinstant/23tGc5wZsqP1gxcZHB2WEA77bGQ1BSuwuSzs9wrnPD3T8Z66GF26jz9igrfxAwqQgnq85.png)

Remember there is some risk here, but what is happening behind the scenes?  HIVE is being burned like crazy to create this HBD.  


![image.png](https://files.peakd.com/file/peakd-hive/ecoinstant/23tcP5UHDsFyACRvtuWi6oq4m3V4kruA66fEFJAVBrQ4JUsbemrnJ6D6W9eyK2uUS3HWg.png)

$1.05 dollars worth of hive is being burned for each HBD being created.  You would think all this arbitrage would drive the HBD price back to its peg....


![image.png](https://files.peakd.com/file/peakd-hive/ecoinstant/23tSzCeC6WzEoXXHbdyEuge9pyn2h4JAYJpixFWgkmmEQ9GVZuk28LS1yt8VHJGJuF3u4.png)

And it is indeed trying to.  But somehow there is still interest in HBD, and we are funnelling it right in the HIVE price and burning hive and sucking it off the exchanges in the mean time.

Personally, I think this is far superior that letting HBD shoot to the moon like SBD has done and is doing right now, although there is some risk on the back end.

Yes, there is a potential for 'infinite inflation', if that HBD is converted back to HIVE when HIVE is really low price.  Think about it, if we are burning 1.5 HIVE per HBD, and HIVE were to drop to 10 cents and people started converting HBD back to HIVE then, it would give them 10 HIVE, way more than was burned.

This is a risk for the platform, but I think I agree with @smooth here that the 'infinite risks' are a bit over stated, and that this is bringing much needed value to the platform as well as stabilizing the HBD token price.

This is the main mechanic that is driving up the HIVE price.

Of course Splinterlands is helping, they are out of account creation tokens and are burning 3 hive with nearly every new account they create, thousands per day.  But HBD conversions are burning nearly 100k hive per hour!

I'm serious, check the circulating supply of HIVE and compare it to STEEM:


![image.png](https://files.peakd.com/file/peakd-hive/ecoinstant/23tmhJWafXMFmP7vaxZRkaUqia8TTfX8t4jNNZ9pBhWxUHS8oVTCHEPDyrA6zHZKREUxh.png)


![image.png](https://files.peakd.com/file/peakd-hive/ecoinstant/23tHbKhJm6Mxai5Ry1DXpMead2PsBTZA1gQHSZ7aS3K7qQLUWeW5mwwix5kA6scFPqbmH.png)

There are 28 million more STEEM than HIVE, and HIVE has become deflationary, for the short term at least.  We will keep our eyes on the market conditions, but know that if HBD is above 1.10 - you know whats pumping HIVE - 


![image.png](https://files.peakd.com/file/peakd-hive/ecoinstant/23tSzR6hgfq48JgdSAovbztNBUkscAgmf6jC9ypN88RQ9QKH8ApZizLEZVSrJhJSJVn4G.png)



'The Koreans!'

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