High interest rates put a financial incentive to sell speculative investments in favor of fixed income investments.
HIVE is speculative and HBD is very high yield fixed income.
As many other currencies fall around 2% today HIVE falls 10%+
My guess? Because of the high interest rate there is a financial incentive to sell HIVE “before others” to put it in HBD or at the very least in other currencies that may fall less.
Historically central banks use interest rates to control the economy. Lowering interest rates usually put bullish pressure on speculative and riskier investments.
Could we try lowering HBD interest rates?…
Plus: it doesn’t make sense to fight market dynamics. With a high yield it is as if the “Hive Bank” (lol) tells people “yeah go ahead sell your HIVE, we want you to hold HBD, here is the financial incentive for it”
If the financial incentive is to not take risk, because the fixed income has such a high yield, then the market dynamic that is out here is bearish for HIVE. If the dynamic is already bearish in general for all cryptos, may someone have mercy on HIVE adopting a bear-feeding monetary policy as other coins show bearish signs.
Yield is the single most important tool banks and countries use to change financial incentives and market dynamics and we shouldn’t ignore.
Our yield was high when countries and entities were raising interest rates, it is high now as they are lowering. It is as if we refuse to change our monetary policy as the world around changes theirs.
Alt coins are going down well over 10%. It's a mixed bag but a lot of getting hammered right now. Though I agree slowly lowering them would be good.
Hey there, as a witness myself, I tend to agree that the interest rate is too high right now, given the state of the market. When we launched the co-witness @pollenation, my partner Enginewitty and I agreed to set ours a bit lower at 15% and aimed for the median of the range of witnesses as we further evaluated the situation. I can't speculate and speak for him and we'd have to collaborate on the decision again to change our witness config, but I'd lean towards a lower rate as for my half of the conversation.
On that note, the reason I found your post is that I was clicking around on Arcange's list on the disabled witnesses names to see who might still be active as a user or just flat out gone completely. As a result I saw your witness is disabled and landed here in that process.
Are you planning to put your witness back online? I'm just trying to assuage my curiosity and see if any of there will be much red dead redemption from those currently listed as red and dead and unredeemed. ;)
Congratulations @igormuba! You have completed the following achievement on the Hive blockchain And have been rewarded with New badge(s)
Your next target is to reach 16000 upvotes.
You can view your badges on your board and compare yourself to others in the Ranking
If you no longer want to receive notifications, reply to this comment with the word
STOPCheck out our last posts: