We have been accumulating HBD much like the rest of you, by posting. Happy to see an old friend back in the system, we have been monitoring the price feeds and saving the bulk of our debt instruments as dry powder. The HBD has been recovering from as low at 65 cents, to a peak of over 0.99, before falling again recently.
These are all market mechanisms reacting. Hive is weakening currently, but it still shows long term strength, we will be careful to watch the levels. We will be watching for 1777 sats, at which time we will consider another buying regime between 1477 and 1777.
But today is about the Hive-backed dollar. We get them for posting (if we select 50/50), but what should we do with them?
The fund swaps them for liquid HIVE tokens, when conditions are right. We prefer to get as many multiples per Hive-Dollar as possible. And while this can sound complex, @tipu has a brilliant automated service that does the hard work for us.
By sending HBD to @tipu with the memo swap - you will receive HIVE at the market rate.
We suggest sampling the market rate with 10 cents of HBD, and we do this frequently. Just today, we noted that the multiplier had risen to 4x!
As we have been reminded lately, the general principle behind all responsible investment and money management is 'buy low, sell high'. So if our goal is to accumulate more HIVE tokens and influence, we are best served by waiting until the multiplier is high.
While 4 is good, we think it will go to 5, so we will continue to monitor this tipu price feed, while also mitigating some market risk by changing at least 10 cents for each check.
Please also remember, that if Hive trades at one dollar, or parity to the HBD, the multiplier is 1. IF and when Hive breaks out over 1 dollar (at a ~300 million USD market cap), each HBD will yield less than one HIVE per each.
As we watch new cycles unfold, it would be wise to remember the previous ones with respect to these proportions. This Graphene Blockchain in particular has an interesting stabilizing feedback mechanism with its Debt-Backed Dollar. Most do not fully understand its workings, ourselves included, but we recognize it as an important inner cog of the system.
This is not advise. It is history. Do your own homework.