RE: Is 20% APR for HBD too much ? (vote for what you think should be the new apr)
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Please remember that many countries have significant inflation and that any investment worth its salt has to make the real value of your money grow faster than this...
Here in South Africa, our inflation is often over 7% and our home loan repayments have interest rates of about 12% (increasing all the time as well). If HBD interest is less than either of these, I won't bother to do HBD savings and will try trading back and forth between liquid HIVE and HBD or just cash out my liquid rewards and invest them in another way...
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Yes but hive can't just payout tons of money to some poor country because they need money hive have to stay sustainable better have 5% than 0% because hive collapse
I see there are people that think that the HP interest rate should be more than the HBD interest rate...
But HBD is a stablecoin that isn't supposed to change in value. It makes no sense to invest in it if you get no interest. HIVE/HP could go up significantly in value in the next Bull market, so it makes sense to accumulate a lot of it even with no interest on it at all.
Also, I don't think South Africa is a big player in HIVE, but in my communities (music, surfing) I see a lot more people from countries like Nigeria, South America and Asia than first world countries...
So the biggest whales want 20% as well as the small guys.
With that said, it doesn't matter what we want. It needs to be something that is sustainable and will help HIVE grow.
I assume the number of active accounts reducing has more to do with the price of HIVE dropping since November 2021, which has more to do with Bitcoin and all other cryptocurrencies suffering in the Bear market than the HBD interest rate?
HBD help hive decreasing too because people jsut sell hive to buy hbd and jsut stake, this create new hbd and inflate the hive value, at least it seem logic. In the top of the highest value accoutn most of the accounts own a lot of HP not HBD so yes the 20% was more introduced for the resond told in the post.
Yes, I notice that if you search the accounts with the biggest value... Very few seem to be saving HBD and making much use of the 20% interest rate, which I find strange.
20% is a large number... If you could save 5 times your annual living expense, you could live off HBD interest alone. This is a huge number, but for some people it might be the equivalent of selling your house and renting instead, and putting the value of your sold house into saved HBD to just live off (if you trusted the 20% to be that safe in the long term)... So yes it is a big number for a safe and stable investment instead of a risky one?
too much hbd stake = hive price drop thats why hive whale don't stake a lot of hbd, since hbd create new hive if no one want the new hive hbd won't worth anything
Thank you for all your replies and helping me learn!
I wonder if there are other things/levers that could be changed besides HBD interest rate that might help... Our default payout for posts is 50% staked HP and 50% liquid HBD - could changing that ratio help?
Yes 75% HP/ 25% HBD could help i think