After a day of irrationality the markets are doing what they do after a big interest rate increase
Yesterday I posted about how counterintuitive it was that the markets were slightly up after the FED gave the biggest interest rate increase in 20 years. When interests are up markets have a harder time going up and tend to go down.
Regardless of the reasons for the "dead cat bounce" yesterday, today most cryptos are doing what was expected after such a big interest increase. I would love to see cryptos going up but that doesn't make sense with multiple countries all over the world raising interests. I still gave my cryptos and won't sell but I would not buy any for the short term, anything I buy now is definitely for holding long term.
The safest and most rational investment right now, for any time frame, would be almost any that bears interest. Luckily Hive has a very attractive interest rate on the HBD savings, so our blockchain is still attractive for investors looking to get away from speculative assets.
Cryptos are here to defy and challenge governments and institutions, of course, but it is not like we have unlimited firepower. It makes no sense fighting against the macroeconomy when all the stars align against a bull market.
HBD savings APR is just such a gem in the crypto space and it is only a matter of time until we see it in wider adoption.
Posted Using LeoFinance Beta
Yes, but we must keep in mind it is a double edged sword, it is easy to see the pros because they are huge. HBD is, as the name suggests, backed by HIVE so it can be considered just another form of HIVE. The pro is it drives HIVE adoption, the con is that we have an inflation of 20% on the supply of HBD, which is almost 10% of the mcap of HIVE, so almost 2% inflation on top of the HIVE inflation, doesn't sound like a lot, but as HBD grows in supply it won't be negligible.
But again, it is a double edged sword, to me it seems like a worthy investment in the community, to advertise Hive, we pay a bit of mcap now but we will surely get a nice growth and a healthier userbase with this investiment in the high interest rate. We just need to be mindful to avoid loopholes, because financial lopholes, like flash loans, can crash ecosystems.
Your post is informative. We all need more of this. Thanks
I feel like we are living in good times in the crypto cycle, best to DCA now and wait till the show all their cards and we hit hyperinflation