A part of me for a while has been thinking about the possible income stream of 20% yield from HBD.
I imagine putting in like 200,000 HBD and getting 40,000 HBD a year
But a lot of questions come to mind.
Where does the yield come from?
Where can I cash out?
Will HBD hold its peg?
Does the interest compound?
And so much more.
Please tag anyone in the hive community who you feel can have a discussion on this topic.
You 3 came to mind first when it comes to discussing the pros/cons and potential risks and slippage involved with wanting to buy 200,000 hbd and locking it for 20% interest.
If I had my laptop I know I can tag like 10-20 other users who can add value by chiming in so please tag them in this post and ask them to chime in.
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These is one the question I've had in mind and hopefully we'll have someone enlighten us.
I think is a risky venture the amount you dream about in a protocol like Hive.
Hbd interest rate seems to be a good choice considering the fact 20% increase but what I am so bother about is will hbd be able to retain that pegged price value
It sounds like a tax nightmare! lol
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In a bear, the drama can become real.
200k HBD means 40k HBD a year. Think those numbers become hive at a low price without adding demand on the market.
It's like a chain-backed short contract that can add on-scale price swing + 20% inflation without adding any demand.
I expect it hive goes under 10 cents, the witnesses will manipulate the price feed for conversations. It happens on steem already. The price feed never goes under 0,18$ on average.
This Means HBD could loss in an extreme market 50% of value.
Maybe not, but that's the risk. On a scale the hive supply can increase massive, lower the price and add even more supply.
I would not do it with the money that's needed for something.
HBD gives a good 20%. I only have about $10 in savings, still to claim this months interest !
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It will really be interesting to know more about the hbd in savings.