I love it when I earn my yearly salary in one day of crypto...
Our society doesn't understand that no matter what time you've lived in, if you know how the economy works you'll get rich. You'll never get rich working!
During the era of exploration was knowing where you could mine gold and spices and make the best trades, during the era of the slave trade, was where to buy the best slaves, during the era of the romans, was knowing about the economy of war, to fund the roman empire expansion.
Nowadays, you need to know about a few topics that really matter:
- How money works (debt and inflation)
- How to use debt to leverage yourself
- Stock market
- Real Estate
- Crypto (New kid on the block)
If you know these things, you'll get rich in no time... If you don't, and especially if you think that working is the way to go and are not ready to make the needed sacrifices...
You'll wander and struggle through life...
The most important- in my opinion- is to know how to handle debt and use it for prosperity. I never learned about debt coz i was never told that financial education is necessary in making life decisions.
The first home I bought, the investments I made and the way I handled my money and time would have been very different had I know how debt could be utilized.
Yeah, that's a big issue nowadays, our society doesn't understand debt and how to use it, and people are actually taught that debt is bad and to never go into debt... Which is the worse mistake a person can do if they want to grow, because with debt you can grow a lot quicker, you just need to know how to use it. And people don't understand that the way money is created is through debt... thus, money is debt...
it's unfortunate that the interest rates have increased so much that it's a lot harder to use debt now, I only got a job 1 year ago, before that I couldn't use it, so I got the worse of it.
I've used crypto debt though, because it has much cheaper rates than real debt. Basically used ThorSwap to get a loan collaterized by ETH to buy a coin $BCB right before it rocketed in price, paid the debt and made $8k profit (give or take).
That's smart. I played the same playbook but I am terrible at trading. I have been using MATIC collateral to invest a loan into HBD for that 20% return. Not great but not terrible either.
That's a smart and safe bet, but since I was pretty sure the bull market was starting this year, I wanted to go for a non stablecoin, maybe in the future, when the bear market returns I'll do the same as you are doing...
Assuming the HBD rates don't drop... Might even be a good idea to use a normal loan. 🤔
I have been doing this for more than a year now with HBD. I was REKT by Anchor protocol when I leveraged normal debt for that 20% return. It still hurts - a little :P
Well, with HBD I think the main concern is that the witnesses don't keep the protocol debt in check and limited, if they don't, they could cause an implosion of both HBD and HIVE.
They've been doing a good job so far, especially when compared with a protocol like Steem which has a bunch of SBD vs Steem which might very well cause it to implode in the future.
@edicted knows more about the protocol debt metrics then I do and I know he made some good posts about it in the past which you should ready if you haven't.
He is probably one of the best people to follow and ask about the stability of HBD and HBD savings rate.
I never liked AnchorProtocol, smelled like bad ponzinomics ready to blow, which it did...
ThorSwap loans have similar mechanism, but at least the people "in charge" have limited it and know of the risks.
With Erik Vorhees from shapeshifting telling me himself that it is limited, which I can assume means they understand the risk:
Great insights on Throswap. I have followed Erik from his centralized days. Never looked into Thorswap loan though. I find it a bit complex to navigate. I have a Rune-BTC pair experiment that I am holding since the last bull market.
With HBD, I do not have enough $$ to too much worry about the situation. I have read @edicted's posts but I do not fully understand the risk of the loan system yet. I am giving extra benefit of doubt to HBD just because I spend my time here in the ecosystem. But f Ups are f Ups and can happen anywhere.
Anchor fren!
Society wants you as a hamster on wheel till you reach 40 then they ignore you lol. But yeah earning 12 months of salary in one month with crypto is freedom.