Hive or HBD; Where's Best for Rewards Saving?
Hello and welcome to ML-BLOG. Being in a system requires one to have the knowledge of the system to excel. To be honest, I've been on hive for quite some time. Even though I've learned a lot about the system, the issue of saving continues to bother me.
The hive ecosystem is a place for all kinds of activities. More like a social media platform, but considerably superior to web2-based social media in terms of benefits. One thing to keep in mind about hive is that you earn profit by doing things correctly.
Hive Account Types
On hive, people can earn money in a variety of ways. Blogging is one of them, and it is more or less the primary. Aside from blogging accounts, other accounts on the hive system are formed for the purpose of curation and many other reasons. This is where the wealthy, middle-class, and impoverished all have something in common.
For a curation type of account, there has to be a published article to be curated in order for such an account to make earnings. The same goes for the blogging type of account, which also has to be consistent in posting in order to make earnings from the system. What are we talking about here? Everything comes down to earnings, and earnings necessitate management, which is why the question is so crucial. Which is preferable for storing hive earnings: hive or hbd?
To achieve an acceptable answer to this question let's understand the benefits of saving in either of the two currency.
Understanding Hive and Hive Back Dollars (HBD)
First, we need to understand that both hive and hive back dollars (hbd) are acceptable currency for the hive ecosystem.
The distinction is that Hive is a free market coin that is susceptible to market conditions just like Bitcoin, Ethereum, and other free-marketmarket coins.
Hbd on the other hand is hive's stable coin which is pegged at the rate of USD, however, the market has little or no effect on it.
One major difference between hive, hbd, and the two account kinds is that the blogging type of account earns in both hive and hbd, at a 50:50 split, until the user changes the setting to 100%, in which case the account earns rewards exclusively in Hive (HP). Curation account benefits, on the other hand, are exclusively in the form of Hive (HP), which requires a power down before any withdrawal can be done.
Leaving Earnings as Hive
Recall I said that hive is a free market coin that is subjected to market conditions. This simply means that saving your earnings as hive can give you a higher rate of your money or a lower rate depending on the market impact.
When I first joined the hive network in December 2021, one Hive was worth $2.4, however, a recent slump that has affected not only hive but the entire crypto market has caused hive value to fluctuate between $0.7 and $1. Consider what someone with all of their money in hive would face. This isn't a one-sided problem; it has two sides. As things stand, there's a chance that hive will one day be worth more than $5, and everyone who saves in hive will profit greatly when that time comes.
Is it sufficient to convert earnings to hive without powering up?
There's a tremendous difference between leaving your profits as hive and powering up, as we all know. Although the hive ecology appears to be decentralized, there is a hierarchical structure among users. This hierarchy influences reputation, which is largely decided by the size of your fully powered-up hive.
So you see, having large amount of hive powered up gives you more control, higher reputation and higher earning rate. However, for whoever is choosing Saving as hive should also consider powering up.
Saving in Hbd
Leaving earnings in the form of hbd is more about securing what you already have without the expectation of receiving more. Consider it as leaving your earnings like a regular bank savings account. This means that money in the form of hbd does not grow or decrease because it is a stable coin.
Hive recently announced a 20% APR for hbd savings. This means that putting your hbd in savings gives you a 20% annual return on investment that grows exponentially.
My Opinion
As a beginner though, I'd prefer saving in hive form. Even though hbd saving offers a 20% return, I'd not see it as the best option for someone hoping to build an account. Don't get me wrong, imagine someone with a 10k hbd saving and another with, probably a newbie with just 200 hbd saving.
With the rate of growth the system experiences, you will notice that the 10k person will likely get an extra 2k annually while the 200 hbd person will likely get 30 hbd per annum. Whereas, if this is converted to hive and powered up can help build the new user's account faster.
Anyway, this is no financial advice but just my opinion to this situation.
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I agree with you on choosing HP over HBD. Building our HP makes our accounts grow faster, hence our influence too.
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Yeah, I strongly believe it to be a better option for an account in the building stage. Thanks for reading
You are welcome and cheers! Keep building💪
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Thank you for sharing such great content using our tag. We hope to see more of it here on our front end.
You post has been curated .
No bank on God's green earth would give you up to 10% APR on any form of investment. Thinking Hive savings is a waste is thinking only about today and not the nearest future, a mistake too many of us tend to make. We want to get rich now and fail to think of tomorrow. Compounding 20% interest would do anyone well in the near future.
You would have had 100% ROI in about 3 years with HBD savings and then the growth becomes continuously exponential, and even better is the fact that you are dealing with a stable currency.
Yes, I agree that investing in mainstream free coins tends to come with loads of benefits but it also comes with enormous risks that we all know too well about.
Thank you for your response, but i'd think you got some part of the writeup wrong. I didn't insinuate that saving in hive is waste. I only tried to point out that saving in hive or Hbd is great but not too beneficial for starters who needs to build their account. Powering up does the better trick for new account builders, I hope I stated this already on the write up.
Thank you once again for your response
Brilliant post by the way
@martinlazizi was right in suggesting newbies focus on accumulating HIVE, actually HP, to grow first before focusing on HBD.
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STOPCheck out the last post from @hivebuzz:
Thank you for the open topic, everything is clear and laid out on the shelves. Beginners will understand how to manage their investments in the hive.
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I’m a newbie and this post has helped me to clear most confusions I have. Thank you so much. I have a question; what is powering up? And how do you power up? Why do you need to power up?