Hi GeekGirl;
I could be off the mark in my thinking, but isn't the preference to have HBD turned into HIVE and powered up? Does the 20% APR make powering up a whole lot less attractive?
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Hi GeekGirl;
I could be off the mark in my thinking, but isn't the preference to have HBD turned into HIVE and powered up? Does the 20% APR make powering up a whole lot less attractive?
These are just two different kind of investment opportunities.
One should buy Hive for 100% to 1000% returns. While holding Hive, it might be better to power up, participate in the network and earn more Hive in curation rewards.
HBD on the other hand is more of a low risk investment with lower returns. There is no limit how high Hive coin can go, but HBD is pegged to $1.
Both serve two different purposes. But both being attractive investment options, it makes Hive even more interesting.
Thanks for the time in explaining that, that makes perfect sense.
Tim
this, for me, is the main factor. HBD has less utility for users and therefore HP will always be more attractive for those who use the platform.
I am not the best at how this works, but from my understanding increasing the APR on HBD would raise the price of Hive because as she mentioned, people would have to buy Hive and then use the conversion mechanism since there isn't enough HBD in circulation to meet a high demand, so buy pressure on Hive and I think converting it burns it. Plus, HBD having more in circulation helps it be more stable and ergo more businesses might be attracted to Hive because they can take payments in a stable coin.
But please correct me if I've got any of that wrong!
Between the both of you, I feel like 50 times smarter!
Thanks so much for your input.