More accurate description of what I am about to write about is executing the original Hive and Hive Dollars investment strategy. Hive, Hive Dollars, and Hive Power are all awesome assets. They all are good for specific purposes. We see Hive coins mainly traded in exchanges, Hive Dollars used within the network or kept in savings to earn 20% APR, and Hive Power used for curating and governance. Ever since APR was activated for Hive Dollars and kept increasing, many of us were interested to see how this Savings strategy would work. One of the great things Hive Dollars has been even without APR is that HBD can serve as a hedge for Hive price volatility. Activating APR made myself and other realize the potential of HBD as a hedge. Before that many would simply convert their HBD to HP, unless they had a specific purpose to save HBD or used within the network for other purposes.
My approach or goal has been 90/10 ratio for Hive HBD. In other words keeping 90% of Hive portfolio in Hive Power and 10% in HBD. This would never be exact, it would rather serve as a goal, kinda. Hive Power has always been the main purpose of investing in Hive. Because it allows people to participate in the decentralized network in a more meaningful manner and at the same time serve as an investment. If we don't believe in Hive as a decent asset for investment, what is the point of wasting time, efforts, and money here? Of course many participants of the network see the value the network brings to the web, the solutions it offers, and benefits for people. It is probably the decentralized network that makes the most sense. Not everything is perfect, nor should they be perfect. The destination might be the perfection, but the journey itself doesn't need to be.
I have always had HP, and since the activation of APR I have been saving HBD as well. More or less, I tried to stay true to my original 90/10 ratio. Over time due to price fluctuations one side gains more value than the other. Hence, HBD is used as a hedge. If price of Hive goes low enough, it might be the time to convert HBD to Hive or HP. Doing so would increase the HP faster than otherwise would have if HBD was converted to HP gradually. Maybe not. That was just my thinking as hedge strategy. The opportunity never came to convert HBD to Hive, because my low price target was too low. Twenty cents to be exact. That never happened. Recently I revealed that my price target was changed to thirty cents. That hasn't happened either. It may happen, I don't know. But price fell close enough to thirty cents. No reason wait at this point. I made up my mind and was ready to get rid of Hive Dollars, for now.
I bought Hive with all of my Hive Dollars, and managed to power up 41k+ HP. That is probably the biggest power up I have ever done. Now I have not HBD in Savings. However, I will continue to monitor monthly interest payments and general updates regarding Hive Dollars. I will never lose interest in HBD even without earning interest. That said I do plan to go back to HBD at some point. There always comes time when things should serve their purpose. For now HBD has served its purpose. I may hope the bottom for Hive's price is in. But I have been wrong many times, I stopped counting. I recently thought it was good time to buy more Litecoins. As soon as I buy prices goes down significantly. This happens all the time to me. I wouldn't be surprised if price of Hive dropped to twenty cents, now that I don't have HBD as a hedge anymore. The question is not how low Hive can go, the question I am more concerned about is what is a reasonable value for Hive. It has always been minimum of $1. But anything above current price is welcome.
I am not good with these prices and numbers, especially in a short term. That's why I rely on simple logics. This logic goes as following, 20% low risk annual interest is great. But that is the ceiling for what HBD can return over time. With assets like Hive upside much higher, so are the risks. I have come to a conclusion that Hive price will appreciate in value within a year. Especially if bitcoin continues making new all time highs. If bitcoin turns are different direction, I may have to reevaluate this idea. But if bitcoin does continue having a great year, this should lead for alt coins having a great year as well. If this logic plays out Hive may appreciate in value faster than expected, and definitely beat the 20% APR HBD would return. If things play out like this, there will be a time to move some Hive coins back to HBD.
Obviously, none of this is a financial advice. If anything, you would want to do the opposite of what I do. Because I lose more than I win when it comes to trading and investing. It is more of gambling, sort of. The great thing about this strategy is I was able to increase HP and it is always nice to have some more HP. But I also think there is such thing as too much HP. I don't think I need 100k HP. That is probably the max one person should have. In the future as network grows in decentralization and more coins are distributed, each participant should/would have less HP so that there is enough to accomodate the network growth and letting more participants have more HP. That of course is decided by the free market. There will be time when people will sell Hive and more new participants will gain more HP, and network will continue growing and becoming more decentralized. I think 60k HP is more than enough. So, eventually that is where I see my account to be, or not.
Anyway, what I wanted to say was, I am thinking it may be time to take risks and take risky investment positions. If things work out great, if not at least I gave it a try. If you know wen Hive moon, let me know in the comments.