HBD Strategy Conundrum
Hi fellow Hiveians,
Today I wanted to talk about the unique situation we are in with HBD and how I should proceed!
HBD Strategy Conundrum
Now that post scheduling is actually working on the Leo front end.. I can get to some finance related topics I've been saving for quite some time LOL
I am one to prefer to do things my way if it's efficient. That doesn't always translate into the best possible scenarios but it's something I've grown to enjoy. Post scheduling is absolutely one of those scenarios that I far prefer that to writing something and posting it at the time I am finished. Because my writing schedule is so sporadic, I have to do it that way, so it's a give-and-take situation. If I don't get what I want, I am not going to spend additional time in the environment until my criteria is met. With posting on Leo, that is definitely the situation!
The specific thing I was going to write about today, now that the above was cleared up, was now that the Hive price seems to have gotten into the positive territory - when do I start saving HBD again?! That's the pickle that I am in at the moment.
I have grown accustomed to the depressed price of Hive which then equates to higher ratios of HBD to Hive when I go to sell the stuff. This has been a wonderful way that I've been able to grow my account pretty steadily over the past several months since we bottomed out at around .16$. I was really enjoying swapping a bunch of HBD and getting a shitload of Hive at those sweet prices. Not everybody was of that mindset though, and those are mostly the mooches who are constantly draining their hive bags.
With the consistent price at around .27$ now, the question I am now considering: when should I set a price limit to go back to saving HBD in savings again?
I am torn on that front for sure. I want to save HBD for the juicy 15% APR it offers, but at the same time I also really want to grow my Hive Power stake quite substantially. I could certainly invest some dollars into the ecosystem but I've done that several times in the past. With the removal of Blocktrades from the US markets, at least at the moment, that's not the best option for me right now. I know it may seem selfish or foolish but that's a decision I've made for various reasons.
That comes down to the choice: save HBD more regularly or keep selling all of it in favor of Hive? At the moment I am fully on the Hive side, because Hive Power increases have greatly benefitted me in terms of account growth, which helps lead to further account growth. At the same time though, I don't want to be all-in on one particular asset due to the volatility of that type of thing.
I am thinking that perhaps around a consistent price of .40, maybe .45 I will start to save HBD again periodically. I will still be selling most of my HBD for Hive at those prices, but I will also make an effort to save 1 or 2 HBD a month, maybe a little bit more, how I was doing it this time last year before the price really tanked and it was far more attractive to start stacking Hive instead of HBD.
This is a good balance to have - when I saved HBD like that it didn't impact my Hive Power accumulation too much but when it came time to Hive shitting the bed and hitting low prices like .20 and below, it really came in handy to have a hundred or more HBD waiting to be cashed out. I ended up scoring about 1,500 Hive when I got rid of all my HBD which was an amazing bit of growth. I certainly wouldn't be opposed to Hive continuing to go up in value, but at the same time I also wouldn't be too opposed to it staying where it is now so that I can continue to accumulate Hive Power at some decent rates!
I know @ekavieka is toying with the idea of what to do with his HBD and Hive Power right now, just as I am :D
What about you, what are your plans with Hive Power and HBD now that we have some added price action? Let me know in the comments!
-CmplXty. Real human written content, never AI. All pictures are mine unless otherwise stated
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Thanks for checking that out! I actually stopped using Presearch for various reasons. I need to update my signature to remove it.
Brave and Presearch are different and i much prefer brave now. I don't earn anything on the searches but that's ok.
I do like the concept of Presearch but it ended up not being something I wanted to keep going on. The earnings were far too low. The important part though is to keep NOT using companies like G*^gle for searches.
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haha for us, we reach a little bit of a confusing happy intersection, happy to see Hive price going up, but sad to know that the chance of getting so many cheap Hive is running out. I wish that it won't reach $0.5 too fast, I still need to hit my 15K HP goals. lol
if Hive hits above $0.6, I might switch the strategy and start accumulating those HBD and keep it in the savings, who knows how long the next bear season can be, so I can buy a lot more hive when it arrives. hahaha
Yeah that's a great way to think about it! I will start slowly and saving one or two a month until it crosses a dollar then I'll save more. I haven't saved any in the last 8-9 months so I wouldn't mind getting a small bit for the future!
The high interest rate on HBD stands among the worst decisions I have ever encountered.
I did have some experience with Enron (which had a high interest security for the insiders). I know someone who lost the money for a charity with Bernie Madoff.
Okay, I know some people who were made home by the Mortgage Backed Security.
The Mortgage Backed Security scam is exactly the same thing as the HBD interest scam.
There were investors who wanted to earn an ungodly high interest so they bunddled mortgages and created a financial crisis.
Of the high interest on HBD also leans on the collapse of FSLIC and the collapse of the Savings and Loan industry.
There were stinking pigs who wanted a high interest on an equity.
It is the same damn thing, over and over and over again.
But I digress. Code is king.
I think HBD will continue to be an anchor on HIVE. I think the best approach is to buy HBD whenever the price of HIVE pops and to convert the HBD to HIVE during dips.
Yes, this strategy magnifies the negative effect that the high interest has on HIVE. But code is king. People should invest to the code.
Sorry, about the rant. Everytime I log in to HIVE I start thinking about all of the damage that rent-seekers wreak on society and get angry.
Here is a wine for listening to my whine.
!WINE
That's a very interesting perspective- there's a fair bit of truth in that for sure. I think like anything we are largely going with the flow that we are able to. I do get suspicious of the giant accounts with huge stashes of HBD and what that will do to the ecosystem.
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For me, I try not to "time the market" so my posts are always the default 50/50. That said, I do have fun trading between a small portion of liquid Hive (from selling Layer 2 tokens) and HBD (I keep about a small portion liquid and stake the rest for 15% APR) when their prices go up and down.
Yeah I know that changing payout is also a possibility but I don't love doing that so I would rather keep it the default and see what happens
I'm think if you got Hive at 0.16 then it was a massive steal for you. Not a lot of people got Hive at 0.07 when it bottomed in the last bear cycle and went to to $3.4. I think I'll wait till the 1$ range before I begin to convert to HBD
Yeah I think that's likely a good idea to do it that way. I haven't saved any and don't plan to go nuts so other than 1 or 2 a month I think I will be doing the same!
No one can predict what the perfect price is, so it is better that whenever we are getting 7 to 10x bull market in the market, we must convert things there and then wait for bear market again.
Yeah for sure I agree it's hard to predict what the rise and fall will be so it's good to change things.
Yeah you are right.
Personally, I don't plan on saving HBD again until the price of HIVE is over $1. Until then I will be selling all of my earned HBD into HIVE.
Yeah that's a good strategy dude I will largely be doing the same except saving maybe one or two a month compared to now where I'm doing zero haha. I do prefer the discount hive!
Yeah, the reduced price on Hive is very nice!