3 main factors that helps us choose between Hive and HBD investments
I saw some of my friends discussing which would be better to hold long-term. Though both are native coins in this chain, only in recent months HBD has attained utmost stability. It is now a perfect stable coin and HBD also proved itself to be a great stable coin in the recent dip we had. The price of HBD was pretty stable at 95 cents in spite of a huge fall that happened.
So, which one would be a good investment. I think I have discussed similar topics in the past to explore which would be the best investment and mostly arrived at a conclusion saying that both the investments are important and we should be doing both the investments for a healthy future. There is going to be no big change in that decision but this time I'm going to compare some facts on each type of investment differently.
APR
APR is something that we all are concerned about. Some people make investments keeping APR in mind. There are investments in the real world that wouldn't even give us 8% or over 8% interest in India. But when we come to the crypto world, there are some decent projects that give us interest rates over 8% per annum. Usually, the APR from Hive is close to 10 or 11 percent. But HBD is very high right now with a little over 12% APR if we claim the interest every month and reinvest.
APR is very important because that's what decides if our investment is a worthy investment or not. We always go for investments that give better returns. Who would be interested to do an investment that gives lesser returns? But some people wouldn't mind doing such investments as long as it is safe and risk-free. Even though there is a considerable amount of risk involved in crypto investments, people still invest because it gives better ROI.
Price fluctuations
One of the biggest reasons why people prefer HBD investment over Hive is the price fluctuations. There are also people who would prefer Hive over HBD for the same reason. The first set of people want to keep their investments pretty safe and they trust a stable coin investment and just be happy with the 12 percent they get. The second set of people is the ones who look for an opportunity where their investment value would increase if the price of Hive also increases. That's also an important thing to be considered.
People would be happy to invest in Hive when the price of Hive is pretty low due to a temporary market dip and they sell it off again when the price pumps during good times. Even in the last two weeks, the price was at around 70 cents and now at around 1.2$. It also gives a great trading opportunity to the investors.
Locking period
When it comes to the locking period obviously HBD is the best because we can take our funds out in just 3 days. In the case of Hive, we have to wait for 13 weeks to get our funds fully out. Some people are hesitant to invest in Hive for this very reason. Especially people who care about the curation rewards. In order to get curation rewards, it is mandatory to power up Hive.
Some of the real-world fixed deposit plans that give high-interest rates will ask us to lock our funds in the bank for like a minimum of 1 year or 5 years. Some banks allow flexible deposits but the returns from them will not be that great. Imagine how better HBD investments are, they allow us to keep the funds locked only for a short period of 3 days and we can claim our HBD interests every month.
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No brainer here IMHO I'd go with HIVE all day long!
HBD is a stable coin and is trying to be pegged to USD so tries always to be pegged to 1USD even tho usually is a bit less but still manages to be quite stable, as you said is been quite stable in the recent months and from what I understand they're working on the background to make it more stable so it can be a proper stable coin!
HIVE is a token and could fly to 10$ one day, so if you have 1000 HBD you will still have 1000 $ but if you have 1000 Hive you could have 10000 $
Monkey math lol 🤣
This just not taking in consideration the long unstaking period in case the HIVE invested is in HP, but even there I would still go with HIVE rather than HBD with 12% APR, in crypto nowadays 12% is achievable almost everywhere so if I had to put my money in a stable coin to get 12% I would probably go somewhere else rather than Hive, Crypto.com for example offers 14% on USDC, they also offer 8.5 on BTC and ETH, but this is just an example, searching online you can find many more other reliable service with a better rewards than 12%
I like Hive but I'm not a Hive maximalist and I still like to see other places in Crypto 😎 We need to keep an open mind and this I believe should be applied to the blockchain too!
Just my 2 cents :)
Last year the price was Hive was as low as 17 cents. Did you also consider that worst case scenario? . 😉
Oh well of course, well DCA all the way down my friend, that I would do in case an investment I'm in goes bad, obviously as long as you did the DD and know what you own HIVE at 0.17 could be a beautiful buying opportunity!
I did buy HIVE at all prices from 0.1 to 1.7, not that mentally derailed to buy above 1.7 🤣 but still...all the buys @ 1.7 are losing big, but the buys @0.1 are doing well, really well, end of the day I'm up like crazy on HIVE, for my small liquidity and also I've got time and invest what I do not need to live 😁
If HIVE goes back to 0.17 I'm going to borrow at least 2000 and buy the shit out of it 🤣🤣🤣 Do Not Be A Degen Like Me! NEVER BORROW MONEY TO INVEST! It could go bad, very bad, people kill themselves for this kinda shit!
I thought I needed to specify that lol 🤣🤣🤣
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What about if HBD goes to 15% ? 😁👉😎
Yeah well that would be the surprise 🤣 I think people are trying to make it more stable and honeslty I do not know what mechanics are in the background to make it work, but surely that could be a scenario 😅
Both seem like good idea but I do agree that HBD does seem better for trades. HP just takes too long to get out but 3 days is not too long. However long-term, I think HP is still going to be very useful when you think of RCs.
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Here in PH, you wouldn't even get 4% for a time deposit. 😞
Oh that's too low. At least my country is better.
Indeed! Sad reality 😭
Nice article with good points we should all know or have access to.
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Thanks for your comments. Cheers!
The price of hive to me has not fallen to dip compared to other crypto coins and HBD really proved to be a stable coin , but m yo question is this ‘how do you manage an ApR for 1 year without engagement in post for hive.blog ?
I don't know if I understood your question right or not. APR is brought to us only through curation rewards. If we want APR from our Hive investment, we have to power up and engage in curation.
excellent publication, personally I invested in hive at $0.25, now that it is more than $1, I transferred my money to hbd, and when the hive goes down in price I will buy it again.
Good move. Yes that's the way it should be. 👍
I guess liquid HBD or Hive can also yield a good APR in diesel pools and that APR should also be considered somewhere in these calculations.
I want to explain my downvote on this one even though I usually don't. I'm all in favor of HBD discussions and I often upvote them because I believe HBD has a lot of potential for Hive and I like to encourage attention and exposure. But in this case, the voted rewards seemed a bit much for the amount of new analysis and discussion in the post. That's totally subjective of course, and I hope you do continue to contribute. I was careful not to smash the rewards too much.After further consideration downvote was removed.
Wow this came out as a surprise. Thanks for leaving a comment trying to explain though it did not make any sense. I don't understand what kind of analysis and discussion you were expecting. Explaining more on that part would have been better but you already made it clear that you don't do that.
Anyways, you are encouraging me to write more but I wish you don't visit my post again to smash the rewards again. Thanks.
I reconsidered and will remove the downvote. I wasn't familiar with your overall work and engagement and after reviewing it I think it's all reasonable.
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HBD stabilization is the savior of HIVE price (long term). This is mostly because it will act as a buffer for all the market volatility that happens along the way.
The more volume it will have, the more it can compensate for very big differences. On top of it, it's a way better-secured asset when compared with other stable coins. Mainly but not just, because other stable coins are super centralized.
Yeah decentralization is one of the biggest advantage that HBD has. I'm spreading the word and also trying to onboard friends.
This is quite an education for a newbie like me, and I will need to go through your post several times to soak it all in. I had to take some time too, going through the comments section to learn more, thanks.