Compounding Your Investment

Many people talk about it but few understand it or have the patience for it.

Banks offer compounding either via Daily or monthly in most cases. That means the interest you earn starts to earn interest itself either daily or monthly. This is what's called compounded your interest.

Did you know this same applies here at HIVE?

That's right!
As of writing this Hive pays 3.38% on staked hive coins. This of course changes as demand and rewards are paid out but so far I have seen it between 3%-4%.

That means if you staked 100,000 hive you would be earning roughly 3,000 - 4,000 hive a year. However it gets compounded so it's actually higher than this. Instead of daily it's actually compounded in real time. When you earn your rewards claim them and your Hive Power rewards start earning right then.

Let's not forget however you also earn curation rewards when using your staked hive!

It should go without saying no wonder why my goal is to hit 150,000 HIVE powered up ASAP and I hope to be doing a good portion of that over the next few weeks instead of months.

Compound interest is taking your principal investment and adding in the addition of interest to the principal sum. It's Interest on Interest and it's a powerful thing over time.

From our example above lets say you earn 3% on that 100,000 Hive and you don't touch it for a full year. You would think you'd earn 3,000 hive. But if you claimed it each day you would end up with
Year 1 - 3,045
Year 2 - 3,138
Year 3 - 3,234

*Pretty sure my math was close enough on that ;)
As you can see we grew from 3,000 up to an extra 234 Hive each year almost 1 new hive a day simply holding on to it.

However! If you came back and curated max each day and let's say your APR on your curation was 7% which is pretty decent you'd now be at 10% this is when things really kick up. Again you would need to power up all curation rewards daily to hit these numbers.
Year 1 - 10,515
Year 2 - 11,621
Year 3 - 12,844

Over 1,000 hive per month by year three. Seriously crypto is here to stay and I believe Hive is here for many many more years.
*Again I did the best on the math but please correct me if I'm wrong. I didn't do decimal places.

Will you be buying and powering up Hive yourself?

Posted Using LeoFinance ^Beta