# The HIVE POWER Compounding Interest Dream, learning to become a whale, organically

By toofasteddie | The cryptorunner | 19 Jan 2022

I have been experimenting with compound interest formulas lately. I have always been pleasantly surprised by what the programmed savings and the compound interest of some financial products offer.
In the crypto world and in particular in HIVE blockchain, in addition to having 12% APR charged monthly in our wallets, we must also know that our staked HIVE (HIVE POWER) is continuously generating compound interest, at a rate of approximately 2.85%. nowadays.
There are several compound interest calculators on the web, but none offering me a clear case in which the compound interest is charged daily and in which, in addition, it allows daily contributions, which is my case, since, every day my HP increases due to to the curation and author rewards.
Specifically, for my personal case and according to what Hivetasks tells me, my monthly curation and author rewards are approximately 192 HP, which increases my stake and my voting power. . This means that, on average, my HP increases at the rate of 6.42HP/day.

As I have already said, because I couldn't find a good calculator in this regard, I have decided to simulate the "Compound Interest with daily contributions" of my account, in some way, I want to reflect something approximate to the reality of the potential of my account.
In the end I have found the formulas that I needed (you can see them on the web https://www.calcuvio.com/interes-compuesto ) and I have programmed an EXCEL sheet that I will share with you at the end so that you can do your simulations.

## Amazing Results

As I have already said, the initial data that I have entered is the following:

• Ci (Initial Stake): My Hive Power as of today (14148 HP)
• Cr (Daily contributions): 6.42 HP (Precalculated)
• s (Number of times you stake): 365 since these 6.42 is what increases my stake on a daily basis
• t: Number of years, I have calculated the final value of my stake from 1 to 10 years following the religious routine of never power down and considering the previous data.

In addition, I consider an arbitrary value of daily contribution increase based on what my stake is increasing annually...

Difficult to summarize everything, but I think I have obtained something "realistic" of how my HIVE POWER would evolve if I follow the premises described and the results are...

## SURPRISING!

• This is the chart of HIVE POWER versus Time only considering averaged CURATION and AUTHOR REWARDS

Can you imagine becoming a whale only curating and posting?

• This is the chart of HIVE POWER versus Time only considering averaged CURATION without AUTHOR REWARDS

• This is the chart of HIVE POWER versus Time only considering averaged CURATION and AUTHOR REWARDS and OTHER CONTRIBUTIONS (Buying HIVE / Converting HBD etc...)

## am I dreaming?

I don't think I have done anything especially wrong... but the results that the simulation launches are incredible, I would say...
Obviously, the last graph does not represent reality at all since it "needs that you have a couple of balls" to be so rigorously methodical and not be tempted to sell or power down at the end of the seventh year, for example...
I'd settle for 7 years doing this...and the graph would still be spectacular...

I leave here my mental masturbation today...
If anyone wants to experiment with Compound Interest simulations, feel free to download my excel file from the cloud (I promise virus free) and study the formulas here.

Actually, it does not look so crazy I would say... we have "at home" many examples of how Compound Interest works with some fellows here that after being active here for more than 5 years already they are getting rapidly the status of whale (@steevc is a good example, if I am not wrong he is staking every "penny" he got as HIVE POWER and now he has more than 70000 HP just being active in the platform).

This is working for HIVE POWER with a current APR of 2,85%... imagine what you can get if you do a simulation with HBD and its 12% APR (Coming soon).

Enjoy!

@toofasteddie

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