What do i do with rabbit hide

You can use 4 rabbit hides to craft leather. This can be good if you don't have cows around.

Because the answer to this question will likely change over time I will give you this link to keep an eye on: http://minecraft.gamepedia.com/Rabbit_Hide. Also, at the time of posting this answer, you can only use it for crafting leather.

At the moment the only use for rabbit hide is to craft leather from it. Place it in a crafting grid in a 2x2 form and you will get normal leather.

This is a useful item, if you ever play on SMP that use entity clears, finding animals can be very difficult. This way you have another source for leather.

In addition to rabbit hides, rabbit will also rarely drop 'rabbits foot' which is a potion ingredient.

http://minecraft.gamepedia.com/Rabbit_Hide