Would HBD At 20% APR Cause You To Consider?

There's been some increasing support as of late from Hive witnesses for 20% APR and honestly it's been something I personally have been saying since the first addition of APR to savings HBD.

At 10% even 12% there really was no interest from me to stack HBD unless hive was over $1 in which case I would pretty much sell all of my HBD into Hive because I personally felt it would increase and increase it has. At $0.80 hive but let's even say $0.90 hive to $1.00 hive that means I already made 10% profit in most likely a very short time.

Why HBD at 10% or 12% Was Unattractive to me

Not only am I betting on the price increase but I am also earning 2.84% just having it sit there powered up in my account seen here.

That's also not all though I'm also earning curation rewards from that hive in the amount of 7%-10% and there's been a few cases when I've been able to bump it over that 10% mark. That means by powering up my have I was earning at least 9.84% - 12.84% and maybe a little higher.

This means I could make as much if not more by powering up my hive and what I would say was faster compounding interest as well on my hive. There was also more I could do with my hive.

Why HBD at 20% Starts To Peak My Interest

At 20% that starts to dwarf my earnings over on Hive itself. It also gives me somewhat security that my HBD I have that it's always going to stick with around $1 value so I don't have to worry about market crashes and a chance at a rally.

What does 20% look like?

(This doesn't account for monthly compound interest)

On 1,000 HBD - 200HBD a year or 0.54per day
On 5,000 HBD - 1,000HBD a year or 2.73per day
On 25,000 HBD - 5,000HBD a year or 13.69
On 50,000 HBD - 10,000HBD a year or 27.38
On 100,000 HBD - 20,000HBD a year or 54.76
On 200,000 HBD - 40,000HBD a year or 109.52
I stopped there as I feel 40k HBD a year would replace many peoples full time job. At just 200,000 that also makes it FAR cheaper a plan than stock markets, banks, 401ks yada yada. It literally just starts changing the game on every level.

There's also been talks to add HBD into what I feel is the first ever DeFi ecosystem. It will be connected to the Polygon Network through Polycub Defi this could open up even more demand for the "stable token" of HBD and allow it to fuel defi systems providing liquidity and more demand for the token.

Is HBD at 20% Sustainable?

Of course it is HBD could print as much as it wants but in doing so I believe it pulls a majority of it from Hive through conversions of the HBD stable fund. Now if any of this information is wrong please correct me below in the comments with proof and I will update this article. Thank you

Is it sustainable is the real question and I believe yes at least for a time being. The money or value has to come from somewhere though so perhaps having HBD added to a DeFi platfrom would actully open it up to massive funds like other stablecoins see and allow it to truly flourish.

Would it kill the price of hive however?

This is something I worry about. What becomes the point of having hive powered up if you can make more holding on to a stable coin and do nothing? No more curating, no more posting long articles that take hours, no more commenting on others articles and so forth. Now you could earn more sitting back and doing nothing essentially. The only people that would need hive now really would be those wanting to run applications on hive or just enough to use the resources of the chain for games etc. It would essentially become a resource credit only.

What are you thoughts on HBD at 20%?
Do you foresee issues with it and how it would effect the price of Hive?
Is the change to soon? or is it needed to expand it into DeFi and provide more value?