The HBD Conundrumn

cryptoandcoffee in #hive-167922 • 2 years ago

Over the last few months there has been nothing better than parking off HBD whilst earning the 20% APR for having it in the savings wallet. Is this the smart move now Hive is down at 33c though? My mathematics and common sense says no and I will tell you why as the logic is kicking in.

Hive in November last year was at $3.41 which is more than 10 x from where we currently sit. The 700 HBD I have tucked away earning roughly 40c per day or $12 per month is fine but that 700 HBD converted to Hive would convert to just short of 2000 Hive Power. This would add another 4 c vote value to your vote generating an extra $6 in curation per month so the "loss" of earning the $12 per month is not really a loss and is far less.

2000 Hive is a decent amount at an ATH which if we take the last figure of $3.41 is just shy of $7K. The thinking is to bring the 7K plus more back when the price is right. The $12 monthly return would then change into just shy of $120 per month if the 20% APR is still available in 2 years or 3 years time. $7000 x 20% is $1400 per annum or 116.66 per month.

The long term aim is to have far more HBD staked in the savings wallet when this happens even if the APR does fluctuate and change. The plan is to have $200K plus in HBD which would be a serious passive earner and a great pension top up in 10 years time.

As you can see in just 5 years having a significant amount of HBD in the savings wallet one could generate a decent monthly income. 200K in HBD would generate nearly $9K per month in 5 years time. If the next ATH for Hive is still 3years way as we don't know when this will happen exactly my bet is we will surpass $3.41 next time around. Even if that was the case investing 200K HBD over 7 years or longer would be even better.

Instead of settling for $9k per month that figure would now be over $13K which would not matter where you lived in the world as that is a decent passive income. This obviously all relies on HBD earning a 20% APR which is not a banker as that can change at some point in the future. Even a 10% or 15% APR would still amount to a significant number.

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#hbd #hive #longterm #passiveincome #crypto #vyb #neoxian #ctp #leofinance

2 years ago in #hive-167922 by cryptoandcoffee

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empress-eremmy 2 years ago

The plan is to have $200K plus in HBD which would be a serious passive earner and a great pension top up in 10 years time.

Astounding how you think so long term. Best I can do is a year when it comes to crypto

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cryptoandcoffee 2 years ago

No worries you will be around in 5 years as you have seen the light lol.

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ablaze 2 years ago

My thoughts align which is why I gave 3 days notice yesterday to withdraw 80% of my HBD savings which I will turn into Hive and power up. Sub €0.40 Hive is too good to pass up...

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cryptoandcoffee 2 years ago

Totally agree as you buy back later.

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niallon11 2 years ago

Powering down my hbd as well. These prices are too low not to convert for later on.

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cryptoandcoffee 2 years ago

Definitely an opportunity not to be missed as being able to grow is the key whilst taking advantage of what is in front of you.

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blanchy 2 years ago

If I get a reward of say 10.5 HBD. I throw the .5 into savings so it just keeps growing. Yeah it might be the time to power down and convert but I like having some HBD savings slowly building.

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cmplxty.leo 2 years ago

Decent thoughts here for sure. It’s a conundrum indeed! I’m more onto the hive part of it instead of HBD at the moment because I need the hive power for various reasons but thankfully do have 160 HBD in savings. Having a few thousand in savings would be great I’m just unsure of the volatility of being able to sell it. I guess it’s less volatile than hive in the long run considering it only fluctuates to around .93 at the typical low, which isn’t too bad. .98 is often where it’s at so that’s decent.

In these markets I’ve done the opposite and loaded up more hive for my HBD which aligns with my long term goals. I’m thinking once I get to about 75k hive power I’ll likely not be swapping nearly as much HBD for hive but hard to tell since that’s a ways away lol.

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cryptoandcoffee 2 years ago

I have been thinking about this for awhile and now the price is where it is it makes perfect sense and when Hive is at $5 the same would apply to moving some into HBD. I hate powering down and did that for the HBD savings now as this is the first hive power down as such for myself.

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taskmaster4450le 2 years ago

These are choices people have to make. HBD offers solid returns. However, speculation on $HIVE could be a lot more profitable.

That is the difference between speculation and fixed income investing.

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cryptoandcoffee 2 years ago

Agreed and the plan is to return to HBD as quickly as possible when the price bounces back. I hate power downs and this is my first ever besides the other platform when we moved over.

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bozz 2 years ago

So did you convert your 700 or are you keeping it in there? With the current prices and since I recently hit my goal I am wondering if I should convert some.

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cryptoandcoffee 2 years ago

Started power down tonight for HBD as it makes far better sense with the prices currently.

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bozz 2 years ago

Good for you! I started a small conversion myself. Can't bring myself to unstake my savings though.

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hariton 2 years ago

This makes things a little crack on the brain, but I guess the point is to invest in both parties, but for now, maybe something relatively steady will be cool (HBD).

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actordontee 2 years ago

This is a smart and intelligent move.
Nothing can be compared to a long-term plan because it will bring in passive income and ensure that you don't lose money in the long run.

Although HBD Earnings may not continue to pay 20% APR for five years, they are currently doing so, thus we should take advantage of the opportunity.

Let's concentrate on the long-term profits. I think it's a great idea to power up the liquid Hive to give it more voting power.

To get passive income over the next two to three years, we must be wise and make smart decisions on Hive.

Thank you so much for sharing knowledge,you are amazing ,continue to be spreading love!!

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darth-azrael 2 years ago

There's a lot of uncertainty of course but personally I doubt that HBD will continue to pay 20% forever and think it is pretty unlikely that it will still be paying 20% in 5 years. While I do think Hive will go back up, I have no idea when that might be. My strategy has been to power up all of my liquid hive and put all of my HBD in savings. I'll probably continue to do that until and unless the HBD interest comes down. I still periodically purchase small amounts of hive which also gets split evenly between powering up and HBD savings.

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india-leo 2 years ago

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