Why would anyone invest in Hive when you can simply get HBD, lock it up, and get an easy 20% every year?
I think the answer is to post, game, delegate, etc. Hive's volatility makes it unappealing from a strictly investment perspective, but I keep growing my stake slowly with earnings from delegation, so I have more to delegate. Taking advantage of the 20% APR from HBD, however, keeps me dropping more money on chain. I also think it's the hottest thing we have going for anyone interested in crypto solely for the purpose of investing. Play2Earn gaming has plenty going for it, but I've encountered virtually no one who is interested in breaking into crypto by spending thousands of dollars on a single game and still play in the bottom tiers.
I had more to say but I'm getting a bad case of the weed brain and need to fuck off, get my bearings, and re-read this to figure out wtf it was. Until next time...
Hey, thanks for the comment.
Apps that encourage people to "put more in" are always nice, games are one of them on Hive, even if it isn't in the thousands range. You also mention the point in the end, people prefer HBD because of Hive's volatility, so why should Hive be riskier while having less returns per se? That's the sort of dilemma I am trying to portray.
Hive will be risky regardless of returns, as it isn't designed to have stability. HBD is safe, so I think that's the way to attract new blood. Once they get here, and see what else Hive has to offer, particularly regarding social media, but not excluding DeFi, gaming, etc., they'll start growing a presence here, which will add to the overall value of Hive, making the rewards we get now worth more.
I've been watching HBD gain acceptance in less developed places, which leads ne to believe that's our bread and butter. Have a reliable stable coin that earns a good return and watch everything grow as more people adopt it.
Having said that, I'd like better returns on Hive, too, but don't want it at the expense of HBD. Maybe we could just divert some of the interest earned from the DHF to bolster Hive returns, somehow?
shrug I am not sure, this is certainly up for debate.
Eventually, we would ask for people to contribute in more than one ways to the chain, governance and curation being two of the most important that a lot of people usually ignore, and they require Hive Power.
Currently, its sort of in a way where if Alice or Bob joins Hive, they'll certainly prefer HBD since they can get 20% no to low risk returns while if they get Hive Power, they'll get at best, 11% overall. So there is no financial incentive to get Hive Power for a lot of people, even if they know governance and curation, they'll still get way less than just holding HBD.
HBD is also something we've been trying to get on exchanges for years at this point, but as far as I know, some legal issues (it being a stablecoin) prevents it a bit.
In an ideal world, I would have similar APRs -- this would mean that if you want, you can technically hold HBD, but if you want to benefit from "other earnings and features" (such as governance and curation) you can opt in for holding HP instead.
Volatile assets are attractive to long term investors who make repeat buys. Higher volatility in general means higher returns, so to anyone with a longer term timeframe it is preferred.
This is one contributing factor for Hive Power actually having been a very good investment in the last 3 years.
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