Perplexed Investors in the Hive Ecosystem
Hive Ecosystem is the best blogging site which allows users to earn money by writing contents and sharing their best skills.
It not only allows you to earn money by sharing content, but also it allows you to do your investment in this ecosystem.
There are many coins where you can invest and also many tokens which you can invest and grow your wealth.
New Hive users are still confused about their investment in the hive ecosystem.
They are confused between 2 coins that is Hive and hbd. Which both of them are providing a good APR earning if you invest.
The thing which make charming about #HBD is that it is providing around 20% APR fixed income without any risk involved.
But the thing about Hive which makes it charming is that it can give you a good capital gain in the long term even 5x to 10x profit gain.
This is the point where people are confused about their investment whether they do in hive or hbd but according to my knowledge I prefer Hive among the best investment right now.
It may can't give you 20% APR right now. But in the long run it can give you a huge Capital Growth.
Bull Run is not to away. It's very close and surely in this bull run hive will show a good performance and the price will go very up.
What do you people think about investing in hive or hbd? Which one of them is better in term of investing? Will be glad to see your answers in the comment section.
I hope you find this post useful and informative. If you do, please remember to reblog it so that it reaches as many people as possible and that they can benefit the most from it. Also, remember to upvote, which will help me financially and grow my account.
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The system guarantees the price of HBD with HIVE. The HBD to HIVE convert button will destroy the HBD and create a dollar's equivalent over a 3.5 day period.
Since the value of HBD is derived from the value of HIVE it is a device called a derivative. For more information on derivatives, you might want to study a company called Enron.
Anyway, HIVE has a ten million dollar loan against HIVE that pays 20% interest a year. Because of this debt, I would not consider HIVE (or any of the coins on HIVE-Engine) to be a good investment.
Hmm, what is the main cause you dont find hive and other hive coins to be a good investment. Dont you think this 20% APR will bring more investors to invest in #hive.
If in case you know some better coins for investment, I need your review about those
The 20% interest on HBD drives people away from HIVE. HIVE has been hemorrhaging users ever since the rise in interest prices.
The HBD interest comes from HIVE. When people press the convert button, the system will destroy the HBD and generate HIVE. The conversion formula means that HBD is just HIVE in another form.
HBD is a derivative as its value is derived from HIVE.
Because the value of HBD is guaranteed by HIVE, one must think of the two currencies in tandem.
The system generated $136,000 in HBD in March. If people converted the March interest to HIVE, then the system would generate 438,000 HIVE.
BTW: The 20% interest on HBD costs more than 20%.
Users tend to stack HBD when they feel the price of HIVE is high. They convert HBD to HIVE when the price of HIVE is low. One can prove this because the market cap of HBD rises when HIVE is high. The market cap of HBD drops when HIVE is low.
One can prove also prove this by examining the HBD to HIVE conversions. It takes longer.
HBD is Debt
HBD operates like debt operates in traditional companies. It is common for businesses to go bankrupt when the debt is high. People who invest in the Stock Market routinely evaluate the debt structure of companies. Companies with too much debt on the balance sheet go bankrupt. When companies go bankrupt, investors lose their money.
People who understand the negative costs of debt avoid HIVE like the plague.
As for the HIVE Engine Coins.
The HE cryptos are all based on HIVE. Most of the HE coins fell by 90% after the decision to raise HBD interest o 20%. The decision to raise the interest on HBD devalued the currency of HE. It also left the tribes in a terrible situation where none of the tribes could compete against HBD.
The twenty percent interest on HBD was one of the worst financial decisions that I have ever witnessed.
Informative, What you prefer other crypto coins for investment?
Cryptocurrencies aren't backed by soft assets. I am not sure if I would recommend any as an "investment."
I buy crypto currencies based on what they do. I bought HIVE and HE tokens because they increased the value of my upvote.
I don't consider HIVE an investment because I expect the value of the coins to drop with time. Sadly, the price of the coins tend to drop faster than the inflation in the currency/
HBD is the only thing on HIVE that performs like an investment. It is backed by a soft-asset (the price of HIVE). Sadly, HBD can set up a death spiral in HIVE. The death spiral will occur the price of HIVE falls dramatically.
If you invest in HBD; you need to watch the price of HIVE and be prepared to pull it. It takes 7 and a half days to withdraw from savings, convert HBD to HIVE. You will then be dumping your HIVE on a collapsing market. It is possible to lose the HBD.