Photo credits to Google
Earlier this month, top witnesses voted to reduce HBD interest from an APR of 20% down to 15%. As someone who's still relatively new to hive, my initial reaction was dismayed and disheartened by the movement because I'm in this for the long run. Am i too late in the game? My plan of accumulating more HBD for interest earning is now being restructured since i need to have more HBD capital to earn the same amount of interest as when interest rate was still 20%.
Why would people want to lower the interest rate when it would also affect their earnings?
This is the biggest question that came to my mind and out of curiosity, i asked this question to some veterans here in hive to get their sentiments regarding the movement.
"Good question! Well some want to lower it because they care about the future of the Hive community and don't want to see it fade away to become like Blurt with a worthless token value. There are others/insiders shall we say that have a nice cash cow going and want to try and preserve that for as long as possible as it is at risk of ending because they have been milking it too hard." - @mypathtofire (see his blogpost: HBD interest now at 15%)
"The key reason is that those who currently have HBD will begin to convert to #HIVE. That conversion will help the price of #HIVE rise which is something that all of us want." -@asgharali (see his blogpost: HBD APR cut from 20% to 15% )
After being enlightened by their sentiments, i couldn't help but agree that the cut is for the benefit of the community and it's longevity. Maybe we should all learn not to be too greedy and appreciate what's still left. 15% is still high compared to other common investment schemes.
I will end my blog with a quote, "The best time to start was yesterday. The next best time is now."
Sending some hugs and kisses
Love, Jane
15% interest is still not bad though.
True naman. Pero nung una na sad talaga ako sa decrease ng interest. But oh well, its for the better rin naman. Are you accumulating hbd din po ba?
The same as was marketed with Terra Luna, you can stake the network and earn 20% risk free was the way HBD was marketed and we know how that ended. The HBD has created a huge debt for Hive holders and some think it is a debt we oue to ourselves or will never be repaid, but that truly isn't the case as we are finding out now.
I understand your sentiments. In the brighter side, i notice people shifting from hbd to hive which i think makes the movement successful. Either way, im all for the betterment and sustainability of hive and hbd because i see a potential in this community.
Yes, there are lots of potential.
It's actually quite simple.
20% has always been very high, but it has helped to collect HBD to generate something like a stablecoin. Why this is wanted, please google it.
Only now, after Hive has fallen by almost half and is in danger of slipping further and further and fading from attention, this rate cut is an indication that you should rather exchange your HBD for HivePower, earn about 10-15% with posting and curating and also hope that the price will rise again. Then you can switch back to HBD with perhaps 20% interest again and have made a profit.
Have a great sunday.
Thank you for sharing this analogy :)