Yesterday I wrote how Getting Rich Ain't Easy.
Today, I'm telling you it is.
In the leofinance discord this morning we were chatting about large HBD holders. And that got me to thinking, what would happen if you really went for it on HBD?
Turns out, 20% interest is pretty good. Shocking, I know.
So I made a spreadsheet (again, shocking): https://docs.google.com/spreadsheets/d/19Vo0TN7fw1kh5gjrBdNM1EN4B7aEH6ky0gZuDUKHBmg/edit?usp=sharing
In this scenario, you buy 3000 HBD per month, every month, for 5 years. Then you start withdrawing. The key to this scenario is inflation-adjusting the withdrawals.
I picked a 6% inflation rate because that is the long-term M2 trend.
So you put in 3k/month for 5 years, which totals 180k.
Then withdrawals start at 4k/month in month 61 and continue to escalate to about 10k/month over years 5-20. Total withdrawals are about 1.3m. At that point the money is depleted.
Still, not bad.
Obviously the deposit and withdrawal numbers are picked out of the air and you can make your assumptions.
Other assumptions include that 1, Hive will continue to be a thing for 20 years, 2, the witnesses will keep the 20% rate, 3, HBD will maintain its peg, etc etc.
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@holoz0r you love your HBD.
Dont tell people. Make them look for themselves on the ledger.
I have a feeling that 20% HBD days are numbered however I do also believe that the APR will most likely always be higher than transitional savings accounts at banks. If you really want to capitalize on the 20% now is the time to really throw in as much as possible into HBD. *Not financial advice
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I dunno. It's so miniscule compared to even hive, which is miniscule compared to the broader crypto market.
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I've been putting in 10% of my payout in savings and I have plans of keeping it there for the next 5 years. It's not much (cause I don't make much) but I'll stay committed.
Being in a low income country help save, If I could scale up my earnings, I would be a king over here
Khal and the Cat mentioned that you are the King of Stablecoin Yield Farms in an older video. Is that still the case, heavy on the Stable-Stable Pairs?
Yep. I pretty much have splinterlands, btc, and stables.
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Is there anything else (especially stable coins) that's giving this much APR at current market ?
Yeah there's all kinds of defi and gamefi above 20%. But they aren't anywhere near as reliable.
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That is a different way of looking at it and would rather just take the monthly payout as a passive income after year 5. Then again is you can afford $3K per month over 5 years you probably don't need the passive income.
Well, pick whatever numbers you like
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I did play around with the spread sheet and does hit home how powerful the 20% really is. I plan to convert a decent chunk of Hive once it is back up at a decent value.
When i see this type big post and the calculation, i tell myself, you never start and at the same, am happy i saw hive opportunity now.
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investing in hbd with 20 apr is really a good decision which most people really neglect, it is a stable coin which is safe to invest in, you receive profit monthly which you can claim and the volatility is really low because it is always peg at 1$. Really gain a lot from your article
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It was sure fun to play with this excel table, under various scenario's, with different size of variables. BIG thanks!
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