Thank you for illustrating for me that it isn't a killer yield.
I'm illustrating that most people are poor and live paycheck to paycheck.
$20k in savings is a huge sum for the vast majority of people.
Even for white collar workers earning 6 figures a year.
I have put my money where my mouth is, would you do the same or is this just paper posturing?
My money is in Hive I have never farmed HBD.
It doesn't matter what the yield is, I don't need it.
Holding debt is not a flex.
So paper posturing it is :)
You are saying it is a killer APR without even using it with any meaningful amount of savings. You are saying this to someone who has used it when it was even at 20% when he is saying to you that it isn't.
I know you are better than that edicted, I know that you can reflect on things.
Queue the fake bald eagle sound. No, mate people outside of the US can save quite a bit of money.
Hm! I'm not sure what kind of logical fallacy is going on here but I'm not sure why I would need to personally farm a 15% or 20% yield to know what a 15% or 20% yield is. If I told you I was farming 15% somewhere else and it was awesome... would that give my argument more credibility? Or are you just looking for some random thing that doesn't matter to discredit what I am saying?
I can see what deals are being offered and how certain assets perform. It's a number on a screen there isn't much to this. I don't need personal experience with every single asset that offers a return to know that 15% is good on a stable asset. It's true that 20% would be better. 20 is higher than 15.
Boomers put their money into bonds and get like 5%.
This is not rocket science.
I'm reflecting on this just fine.
No, I have said this multiple times. When you want to exit from HBD savings, the real APR you end up with is around 12-13%, not 15%.
Something advertising X% APR doesn't necessarily mean that is the APR you get in reality. You know this, but you are still trying to argue against it.
Let's run a simple thought experiment here. You have a stable asset, it has a whopping 50% APR, but if you sell this asset you have to pay 80% tax on your gains. What is the real APR here? Is it the 50% that is getting advertised or less? I know that you are not this naive. Even if we do an APY, it would take several years for you to actually reach 50% APR.
That is why 15% is okayish, many things decrease the actual return you are getting.
My comparison was to the S&P 500 index fund.
You've yet to explain how the overhead cost selling a stock is different than the overhead cost of selling crypto. If we take what you say at face value then it's no different for any other asset that makes 15%. There's friction everywhere.
The point is that a stablecoin paying yield is better than a volatile asset going up the same amount on average. It's not an arguable point. It's a fact. A mathematical fact. Stability and predictability are better. The economy has proven this for thousands of years. A year can go by and you can be down 30% on the S&P even though on average it goes up 15%. Anyone who was depending on having 15% more gets totally screwed over when that happens. It does not happen with HBD.
The deal that HBD is offering is better than all bonds and arguably better than most stocks, especially for non-gamblers. To claim that this is "okayish" because crypto degens expect insane returns is unreasonable.
No, it isn't. Just because you only know about US financial vehicles and know nothing about outside of it. Doesn't validate your argument. There are much better financial vehicles than HBD, with close to similar risk profiles.
Past performance isn't an indication of future performance yadda yadda, tell me what happens to HBD if Hive crashes pretty badly and in dire straits so much so that HBD depegs?
What if I was depending on getting 20% but witnesses decrease the APR to 15% at a moment's notice? Or if they do as you implied and "rug-pull" the APR?
Tell me how in a scenario where I decided to put 100K USD into HDB, and witnesses deciding to "rug pull" the APR, HBD is more stable and predictable? And also comes with a guaranteed loss of some amount from the principal.
Systemic risk is not a variable in this discussion.
Again, every asset has systemic risk it's not relevant to the conversation.
Unserious statement lacking a single example.
I have to assume the example doesn't exist because it would be easy to pick apart.
Then you haven't lost anything and can act accordingly.
Trying to compare this to losing money in the stock market is inappropriate.
Again, you didn't lose anything in this scenario.
I shouldn't have to explain it you should just know.
In fact I think you do know you're just trolling me.
Which is fair play but whatever.
You've gone off the rails at this point.
SP500 going down is an inherent systemic risk you brought into the discussion. Hive's value can change like a stock which indirectly creates the same risk for HBD.
I have lost at minimum 5% from the principal. Changing of the APR will change the whole timeline of when I can actually expect a return.
Turkish money market funds, Turkish forex funds. Inherent risks to these are not that much higher than HBD's risks.
Again I have lost at minimum 5% from my principal. PRINCIPAL is in USD not HBD. To get HBD a) I have to buy it B) I have to convert Hive to HBD which comes with a 5% fee. 100K USD worth of Hive converted = 95K HBD. If witnesses decides "rug pull" the APR at this moment as you put it, I would lose at least 5K USD.