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RE: Would you consider storing a significant part of your net worth in HBD ?

in #hbd2 years ago

I would for sure but a part of me feels like there's still risk if too much HBD starts getting printed from interest. At some point you have to start wondering how much value can keep being pumped into the printing of new HBD? I would guess there has to be some type of underlaying factor there of which I don't know off hand.

However making 12% and having it be a real stable value is enticing being that a high REIT dividend yield is about 8% but runs a very high risk of being removed or collapsing with the way things are right now. So yes I would for sure consider it and have already considered it. For now I've been stacking it as it comes in while still going through the motions in my head about taking action on it and to what extent.

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As of yet the printing of interest has a trivial impact on inflation, but it is quite possible that it will increase rapidly.

In that case we will have to rely on good stewardship of the witnesses to recognize when demand for HBD savings is actually too high and detrimental for core Hive token. In such a scenario they should dial down interest, and savers should start to exit HBD savings as it is less attractive with lower returns. We will see if that actually happens, of course.

But in this case demand for HBD would drop a lot. Because otherwise inflation would hit again.