You are viewing a single comment's thread from:

RE: A Look At HBD Savings In This Volatile Market | Data on HBD balance in savings

in LeoFinance2 years ago

Interesting data. I think it is worth mentioning that the top 8 accounts received over half of the HBD interest last month.

If my calculations are correct, HIVE is currently giving out 1 million HBD a year in interest.

Most of this HBD will be converted into HIVE. Converting 1 million HBD at $0.33 would create 3 million HIVE. That is a lot of HIVE that the market must absorb.

Because of the 20% interest on HBD, I no longer advocate investing in HIVE. One should only invest in HBD.

HBD interest is putting a huge downward pressure on the price of HIVE. Since interest compounds, the downward pressure will increase with time.

Sort:  

Without any variable changed, 20% out of 3.3M in savings is 0.66M HBD, yearly. Its not 1M. For 2022, till today the payout are around 0.22M, so 2022 will most likely end around 0.5M.

How much will this be in HIVE depends on the yearly average price. Today hive price, that is a yearly low, is 0.36, at which this is equivavlent of 1.8M in aditional HIVE created per year, (worst case scenario) on the top of the 24M regular inflation.

HBD interest is putting a huge downward pressure on the price of HIVE. Since interest compounds, the downward pressure will increase with time.

It is for sure and additional inflation, but to say a huge downward pressure is a bit to much. 1.8M HIVE per year, is around 0.5% aditional yearly inflation on top of the regular 7% inflation. Also not to forget HBD creates an up pressure for HIVE as well if there is demand for it.

At the end its perssonal deccison where you think you should invest, just wanted to be exact with the numbers.