The (purely financial) folly of cashing out Hive as you go....
If you've been regularly powering down and cashing out Hive from your weekly rewards stash as you go, you've probably missed out on a fortune, compared to playing the long game...
The financiallly more astute option would have been to Powering Up and to wait for Hive to hit $0.50, $1 or whatever higher amount!
So let us imagine you earned the following on average per post and in curation...
- $5 HBD
- 20 HIVE (working on Hive being 20C)
- 10 Hive in curation (for which you'd need around 50K Hive staked, very roughly.
Now the important bit here is that is 30 Hive overall a day. That is Powered up automatically, in the normal state of things.
So 30 Hive a day Powered Up over a year would give you....
30*350 - to keep the math easy and give you a little to cash out for a couple of lattes along the way.
30*350 = 10 500 Hive, now that's not too shabby
£2625 worth of Hive
£1750 in HBD.... that's an additional 7K Hive....
So with above model you'd be earning 17K a year, if you bought Hive with all of those HBDs.
Three different models.
You've basically got the three options below.... low, middle, high in therms of Hive Vesting...
Assuming Hive goes to $! after 1,3,5 years, rather than $030, you are looking at...
| All cashed out | 1 YEAR | 3 YEARS | 5 YEARS |
|---|---|---|---|
| All cashed out | £4375 | $13 125 | $21875 |
| HBD cashed out only | $1750+$10500 | $5250 +£31500 | £8750+£525000 |
| HBD used to buy Hive | $17500 | $52500 | $87500 |
Actually if anything that underestimates yer accumulated Hive earnings because it doesn't take into account the increased curation returns you'd have. In the later model where you are buying Hive, after only 3 years you'd double your curation returns to 20 Hive a day, so that's an additional 10 Hive per day or 3.5K Hive a year, or something like an additional 10K Hive over five years if Hive is going to one dollar, compared to smaller incremental curation gains in the middle row, and NONE in the first row.
Problems with the model...
Of course prices are more dynamic, Hive will fluctuate a lot more than that, but it gives you a gist.
The ironic thing....
For the vast majority of people who are cashing out on the regular you'd never get towards earning anything like the above figures, most HP on here only rewards people who Vest.
Of course there's irony here too, as many people who have been Vesting may well take 10, 20, 30% or more out of their stash towards the peak of the alt cycle.
But then of course you can buy back in on the dipity dip over the NEXT FOUR YEARS!
Overall you're a much bigger winner Vesting compared to cashing out on the regular.
Posted Using InLeo Alpha
Nice and useful calculations!
When I see accounts that always cashout I stop following and supporting them because it is obvious that they don't appreciate Hive and don't believe in its potential and this is especially evident when the value of HIVE is very low.
To me HIVE is worth much more than 1$ and that is why I always Power Up and never Power Down
thanks for this post
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I'm cashing out a little bit now to play the markets but every move is made with the intention of making profits.
Buying HBD and waiting for a crash to buy back multiples of what i cashed out in the first place.
Speed up the process by a few years if it works out.
I concur! Don’t be a power downer 🤓
I have powered up since day 1. I do plan to sell the HBD eventually, but I just used all of it to buy hive with 0.18-0.20. So, I need to save some more HBD again.
30 HIVE from curation rewards in a day is just good. I can receive it in a month :) I think I missed the change to convert some HBD to HIVE when the price of HIVE was at $0.20s. Let's see...
Anything around 20 cent hive was a good buying time, might not come again for a year or so!
The crazy and ironic part is those who are cashing out obviously need the money and they will ever get ahead in life. Any sane person would work an extra job in order to save their crypto. I have been doing this for long enough now and still not cashed out 1 single crypto token. It depends on where you see the value.
I certainly would never cash out more than 50% Plenty value of just holding onto a lot of crypto I think! Compared to FIAT
Yes agreed this is not for cashing out and why HBD plays an important role of keeping the value whilst you wait it out when the bear is dropping all he prices. I think I am buying a laptop and that is it lol.
Well as long as you get yourself an ickle treat, it is something!
I get that some people really need the money, but if they can build their HP a bit then they can benefit. I've cashed out some for some purchases and will do it again. I just have to decide what is a reasonable price to do that. If I could buy what I want and make the money back in a couple of weeks then that seems okay.
I do keep an eye on the stats from @arcange to see if we are gaining more big accounts. Numbers have been going up, slowly.
This is a good argument for people who don't need the money to buy basic necessities. Some 40 years ago I was earning a tiny paycheck at a part time job. I put all the money into savings bonds for my kids and never cashed out. But, to do that, I had to have enough money without that paycheck to pay my bills. I enjoyed the luxury of letting those bonds accrue modest interest and grow. But if I had hit a rough patch, or if that tiny paycheck would have made a difference in my life, I wouldn't have been able to put it away.
Same thing with Hive. If I needed it, I couldn't let it grow. Some people need it.
The vast majority of my posts don’t make back the electricity it costs to write them these days 😂
Fact is people need money to live, and things have only gotten more expensive, investments have to come after paying the bills because landlords won’t wait until hive is paying out Lambo money 🚀
I bought a bunch of steem and hive at the top of the market like an idiot so I try to not look at the price so much now.
This has always been the great problem for people who need their resources to survive, and consequently leads to ever greater inequality.
I really like credit unions which help people save and provide loans at reasonable rates for people that can't get them elsewhere (except the Provi and other loan sharks and now their digital equivalents) for things like shoes for school and heating bills.
I have always thought it was a great idea that the loan repayments included a small percentage of savings so by the time the loan was complete, the borrower had accumulated a tiny nest egg putting them in a slightly better position than they were before. And like all systems where you improve your credit rating, they were able to borrow a little more next time, gradually building their wealth over time.
I do try and persuade people to save a small proportion of their rewards - 10% of low rewards may not make much difference if spent in the day to day, but that little amount saved over a long time could make a big difference.
Just a question...as I am confused ...still after nearly five years... I thought it was frowned upon to power down HP? hence I split 50-50 on rewards and have steadily built up HBD, which even at 15% is better than the banks, one day i will learn how to cash it in and play about on the crypto markets. does that make sense?
well thats actually two questions, but fuck it who is counting