Explaining Hive to people is hard. I was telling my boss about the 20% interest on HBD today. He asked me how it can do that?
I have no problem really describing what Hive is, I do have a very hard time explaining HOW Hive works.
Explaining Hive to people is hard. I was telling my boss about the 20% interest on HBD today. He asked me how it can do that?
I have no problem really describing what Hive is, I do have a very hard time explaining HOW Hive works.
Perhaps reading and understanding this would help😉
https://leofinance.io/@leoglossary/leoglossary-what-is-hive
Thank you. In fact we sat and read it line for line. It did help describe Hive further. But I think he was asking more of the mechanics behind it. Like how can we be giving 20%. I know I have read posts on here before, but it was difficult to sift through everything to find what post I read it on before that describe it well. I know it is based on inflation of the Hive coin. But again, that is where my answer for him kinda stopped.
Oh that's challenging indeed. The HBD interest is based on the consensus of Hive witnesses. Majority of them voted upon it. I recall reading an article that said the 20% APR on HBD is sustainable but I can't remember who the author was.
I was just reading this a while back:
https://leofinance.io/@crypto-guides/what-are-hive-backed-dollars-hbd
Posted Using LeoFinance Beta
Great way to answer questions.
Linking #leoglossary.
Thanks for doing that.
Pleasure. It's good to let others know about #leoglossary.
What's 2explain? The 20% was decided upon by consensus of the Witnesses, & they put it N2 effect. When was the last time a traditional bank did that for its customers? As for funding the interest, I think it comes from a regenerating pool.
It isnt easy since there are os many dynamics to it.
Too bad the classic "magic internet money" meme is about Bitcoin but it applies to HBD and the 20% as well 🧙🏻♂️ 💰 💻