I took the photo from hive.io community and rearranged it.
Hi Friends
Today I have reached my another goal on HIVE, which is accumulating of 500 HBD. As you know, HBD is a stable cryptocurrency of the HIVE blockchain whose value is equal to or desired to be 1 USD. To make the value of HBD equal to 1 USD, smart contracts that convert HIVE to HBD or HBD to HIVE are operated on the HIVE blockchain. For details and technical information, you can check [1](https://hive.io/hbd/), [2](https://leofinance.io/@crypto-guides/what-are-hive-backed-dollars-hbd) and the recent [post](https://leofinance.io/@taskmaster4450/hive-backed-dollar-hbd-becoming-a-stablecoin) of @taskmaster4450.
Some of the author rewards are distributed as HIVE and some as HBD on the HIVE blockchain. The proportion of this distribution can be changed by HIVE witnesses over time. In 2021, an annual interest of 12% began to be paid to HIVE members who transfer HBD to their savings account in order to preserve the value of HBD. The interest rate was subsequently increased from 12% to 20% to further encourage HBD savings. There is no financial institution in the world that pays an annual interest of 20% for an instrument whose value is almost equal to 1 USD. If you deposit this money in USD in any bank in Turkiye, you will receive interest payout at the rate of 1%-2% per annum and also you will pay tax about 20% of the interest income. Considering today's HIVE and HBD prices, I think it makes a lot of sense to save HBD and get interest payout.
From today on, if I don't transfer any HBD to my savings account, I will get 8.33 HBD interest payout per month and 100 HBD per annum. I don't take the compound interest into account. Assuming the price of HIVE is at $0.30, I will have got interest payout of 27.76 HIVE units per month. If convert 500 HBD to HIVE, it makes 1666 HIVE. Supposing that I powered up with all of it, I could not have got 27.76 HIVE curation rewards per month with that much HIVE Power. As is seen, it is more rational to accumulate HBD and got interest payout at today's prices. On the other hand, I see that it is not preferred to accumulate HBD both in the TR community and on HIVE general. HIVE Power Up Days may also have affected this situation. At the beginning of each month, the list of monthly HBD interest payouts distributed on the HIVE blockchain is published by @geekgirl on the basis of account. As far as I have followed her posts, there is an increase in the HBD accumulation of the HIVE community every month.
I am not completely sure about my next strategy. It might be necessary to convert some of the HBD to HIVE with the expectation that the price of HIVE will rise above 1 USD in the future. For now, I think of accumulating less HBD and converting the remaining HBD to HIVE to participate in the HIVE Power Up Days with a higher amount of HIVE. Let's see how the balances will change on HIVE in the future.
What is written here is not financial advice. My calculations are based on today's prices, conditions may change tomorrow. The best investment is doing your own research and decision before making any investment. Thank you for reading.
