Personally (although I'm still a very small player !) I go for a blended approach. I tend to alternate between buying HBD and Hiver Power, mainly based on which one is a more attractive price at the time.
The only slight concern I have with HBD is my own lack of knowledge. I really don't understand where the money is coming from to pay such a great return. How would it be funded if a few external whales invest in HBD and then all want to cash out with their returns after a few months or years ?
As far as I can work out, the only actual revenue source HIVE has is from fiat people convert to HIVE or HBD; it doesn't sell a product, have advertising revenue or directly charge for a service. I adore Hive as a social platform and for the rest of the ecosystem, but I'm sure there's some piece of the jigsaw I'm missing that enables HBD to pay a 20% return rate.
The interest paid to the HBD in savings comes from the inflation. It is new money created.
This can occur since the stablecoin has only 9 million on the market. Cant be a true currency with that tight supply. Need a lot more liquidity for it to be realistic for payment purposes.
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Only 9 million HBD in circulation but only the 3 million of that in savings earns interest. So this is really a very tiny amount. If that increases a lot the cost of interest may (or may not) become prohibitive and need to be reduced. But for now it is great.
That is true. It can be reduced. Of course, the buildout of use cases and other utilities enter into the equation.
Hopefully people focus upon building and applications incorporate HBD into their operates.
Plus the two-way conversion mechanism allows for the altering of the supply as the HBD/HIVE holders see fit. A rather great system design.
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