@taskmaster4450 wrote a post about setting the example for others with Hive. He mentions accumulating and building your account to surprising levels to demonstrate to others that crypto is a thing. This inspired me to play the calculator game using a compounding interest calculator. Out of curiosity, I wanted to find out what my account could become if I continue my savings plan indefinitely.
Here is a video of sleeper cars to help you visualize.
Currently, I am buying $25/wk in Hive. I am also leasing out my HP on Dlease for about 16%. At today's Hive prices, that amounts to 100 Hive purchased per week. That equals 5,200 Hive per year. Yes, $25/wk buys you a Dolphin every year at today's prices. This is more than what you need to run the compound interest calculator. You need a starting balance, your monthly contribution, interest rate, how many years, and how often your interest in compounded.
In about 20 years, my savings will amount to about $200,000, assuming Hive stays at 0.24. In 30 years, I'd have almost $1 Million in Hive.
Granted, there is no guarantee that Hive will stay as low as 0.24 forever.
There is also no guarantee that people will continue to pay 16% to lease Hive Power.
This was all just an illustration to demonstrate that for all the crap many of us give Hive for not thriving, it is a beast when it comes to earning. There is more horsepower under the hood than we think. The problem is that we are holding it back by not dumping cash into it.
The thing is, you don't even have to lease out Hive at 16%. A good content creator could probably generate greater returns than 16% consistently. But, you also need to be investing money into it. Content creation and curation alone won't cut it. You'll also need to add some racing fuel for Hive to get that engine cranking out power.
It's easy to get discouraged, however. The trouble is that you need to meet two conditions before the compounding gets crazy. First, you need to reach about $6000 in Hive to start seeing interesting returns. Second, you do need about 20 years to start seeing parabolic growth. Look at how the balance goes from $200,000 to almost $1 Million in 10 years. If you start at $5K in Hive, then you do get a head start for your Hive sleeper account. In any case, it's those last years where compounding shoots up.
In a way, we should be glad that Hive isn't as popular as it could be yet. This gives us time to accumulate and set things up to let our little Hive sleeper accounts take off when the bull run hits. Listen, Hive already can reward you handsomely. But, you're not giving it much to work with.
If you give Hive $1, it may give you back 13 cents. What the hell are you going to do with 13 cents? If, on the other hand, you give Hive $10K, then Hive will give you $1,300. Don't be stingy. You're only shortchanging yourself.
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Great seeing your analysis on the possibility of having more Hive. Pushing more Hive in our stake will no doubt set the compounding effect cranking!
Definitely. The calculation has very different results if you do not keep putting in money. In 20 years, $1000 becomes $24K with compounding. In 30 years, it becomes $117K. That's without putting another dime into it. Of course, you'd still earn rewards from posting and curating.
This is something that Hive can do TODAY that many users don't realize.
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@tipu curate 2 :)
Upvoted 👌 (Mana: 16/32)
Thanks for the tip.
And duplicate this process with LEO, NFTs, or whatever else floats one's boat.
Of course, imagine if (when) this can be duplicated through the use of SMTs.
Hive certainly is the blockchain of opportunity.
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It would be awesome if Hive Engine set up something like Dlease. The basic components are there. I’m already delegating LEO to myself, for example. I’d be willing to lease my LEO to others. I think you’re on to something.
I wouldnt be surprised if some undertook that initiative.
It only makes sense to start spreading it out. Of course, that would be the value of SMTs. Since they duplicate what HIVE does, they will instantly have delegation possibilities. I imagine it would be an easy addition for DLease.
We will see how it all unfolds.
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