In terms of yield, HBD is the goat.
Say that again!
There is no place where you can get 15% on your savings, offline or online, stock, or any other asset, but we probably undervalue this because it is our own native stablecoin. What do they say again?
A prophet is always underestimated in their own country. Many people have discussed how HBD savings have helped them, and I personally believe in taking advantage of HBD's stability.
In fact, I have heard people talk about creating a retirement plan based on HBD yield. For example, 30k HBD pays approximately 4500 HBD APR per year, which is a healthy 375 HBD divided by 12 months. With a 30k savings, this is the best thing ever.
Now, I understand that the average person does not have 30k HBD lying around, but a healthy 10k can still go a long way. Now, this is not just about the strength of HBD yield; it is also about how you can accumulate HBD throughout the bull market and even x4 or x5 your hive stake during the bear market.
For example, if you sell 2k Hive at $2, that is $4k. Now, imagine you did not even stake it to earn the standard 15%, and you come back to buy Hive at 0.4, maybe 20 months after its last ATH, that means you will be buying $8k, after initially only selling $2k.
Now, if you staked for 20 months and did not just leave the HBD lying around. Consider curating with 8K hive power for at least three years, then repeating the process for another cycle.
Think about it again. HBD is the goat, and I am not saying that because it runs on our native Blockchain. However, there are some drawbacks to consider.
Although We cannot talk about the long-term certainty of HBD.
I am not talking about it being depegged; I am talking about whether we will have a consistent yield for an extended period of time. For example, we cannot always keep the HBD APR at 15% because we have rotated it for a while based on the hive debt.
For example, I believe that the former (20%) was reduced due to safety measures. It's safe to say higher APR is affordable during good market prices, and we saw how this went during last cycles' bull run.
However, even a reduction to 10% is still healthy; however, a long-term HBD owner who wishes to invest their retirement funds and plan for a steady 15% may not benefit from any changes in APR, but they can plan for any changes. It is safe to say that the benefits outweigh the disadvantages.
HBD is easily the quickest way to increase your hive stake if you know what you are doing and are intelligent enough. After all, you must be smart and pray for the odds to be in your favor.
leveraging stability to capitalize on volatility.
I am sorry if you are waiting for my own plans; they are not 100% complete, so I will not talk about them. However the blueprint is basically the same: hold HBD, and buy back Hive when it's cheaper. This is a broader statement or compound plan, with other intricate details to consider.
In reality, everyone requires an HBD goal for the end of the bullrun, unless they have no long-term plans. Even if you don't, you should be smarter and own one. If you study the structural and economic aspects of Hive, as well as the market cycle in general, you will realize you need these plans, which involve
Interested in some more of my posts
Why Is the grind getting harder?
Monopoly Is the Death of Civilization
Survival: Choas and Scarcity
Crypto: Gut & meaningful Connections
What is the primary barrier to entry in Web3?
What Are Some Things You Should not Do During A Bull Market Year?
.
HBD will be a good play at the end of the bull market. Interestingly, it would be a good play now or up until now for a few of months, but that was more of a short-medium term thing, most likely.
Yeah, even now HBD helps you against further market dumps, and that's very important too. Although I think we might be in the last phases of the market dump. At the end of the bullrun, the HBD every individual ends up with, plays a crucial role in how their winter (bear) period will be like
First of all, is it already the bull run? Because I didn't feel it in my portfolio huhu. second, I've been thinking about investing a huge chunk of my savings to hbd for my retirement but I'm quite hesitant as interest rate might go down in the future. Do you think it will go down?
This is the bullrun year. BTC if already mooning, but if you're holding any coin apart from BTC then you'll have to wait till maybe later in the year. As for HBD I think the Apr can change but might probably not go lower than 10%
I am building my HBD and HP every single year, and it will be the same whether or not we are in a bull or bear market. It all adds up over time, and I think the interest over it adds up over time.
You're right, it adds up whether or not we're in a bull run. However taking advantage of its stability to increase ones HP is something that shouldn't be underrated by anyone.
It's not a bad return, assuming the dollar doesn't turn to total garbage that is... One never knows in the world of today! Silver and gold look like the best bets for the time being, but much harder to store. Even ten percent is a healthy return and reduced the debt on Hive, so I think it's likely to happen in the next little while. We'll see...
I'm not sure where anything is headed right now though except precious metals!
Yeah, I get what you mean! The world is pretty uncertain right now, and no one really knows what will happen with the dollar. Gold and silver do seem like safe options, even though storing them is a bit tricky.
A 10% return is definitely good, especially if it helps lower debt on Hive. It makes sense that it could happen soon. But yeah, everything feels unpredictable right now—except for precious metals! Let’s see how things play out.
10% is likely in the next bear market, but that's probably like in two years time, so earning 15% for 24 months or something like that is not so bad, as well as continuing with 10%.
I do agree that precious metals holds quite the value, and in a place where fiat begins to lose their value, however earning spendable yield is the goal for someone who is looking to put their retirement money to earn yield
Liquidation of metals can be hard unless you know the right buyers, I do, but many don't! A nice rate of return of 15% is hard to beat!
Perhaps it also has to do with market. In Nigeria here you'll probably have to do a lot of physical KYC to sell assets as good. The police and other bodies wouldn't even let you hold in peace.
That's just wrong... But governments that are corrupt want their cut of everything... Even here in the US!
The Nigerian government is something else. Every corrupt official wants of cut of what's not theirs, and there's no way you can own, store or sell without their permission
Earning 15% on a stablecoin is just to good to leave without taking advantage, especially when banks barely give you scraps. The strategy makes sense, stack HBD now, buy cheap Hive later. But also yes, nothing’s guaranteed long term
I think the best play will be having HBD at the end of the bull run, while buying Hive when the bear market kicks in. So yes, 15% is really huge..
perfect strategy I think I'll learn the market a bit more and use this exact strategy
I didn't understand this until recently, despite being in the game for seven years.
wow then you're sharing your experience with me .. thank you so much man
I think it's a sound blueprint that anyone on Hive ought to follow. Besides, it's only a few trades between these two tokens and doesn't necessarily require timing the market. I'm personally cautiously optimistic on the long-term viability of HBD savings, crypto in general can be quite unpredictable.
If you're timely in your conversion, the benefits are amazing. The end of the bull market on this occasion is the right time. Inasmuch as we cannot target it correctly, getting it close to 80% is still excellent
Yes, my current range is around 75% to 85%. Targeting the pico top is pretty hard to hit even though there will be signs lol. I think being realistic also helps or rather employing a trailing conversion strategy.
The fear of folks is they always run to sell when its going down rather than rejoicing and stalking more hive
My brain has always been calculating since I heard bull run will happen this year. I have plans for HBD especially when the price of Hive goes up to its ATH, I will buy HBD, stake them. Wait for Hive price to go low, buy Hive again and power up. I won't forget to take some for enjoyment at least. Let me enjoy too but I won't let that HBD staking pass by.