Paying some rent: Leasing Hive Power as a growth strategy?
Life in the current crypto market seems a little too boring with depressed prices and little action going on.
To seek excitement, I am considering leasing some Hive power so that I can do more with my account.
Some quick calculations. To power up 10,000 HP, it will cost me about $4,000 USD today. Of course, I get to keep the 10,0000 Hive once I take this route.
I recently discovered that some Hivers have been leasing Hive power from DLease. The current annual interest rate seems to be about 11.25%. For example, if I lease 10,000 Hive for a month, it will cost 113 Hive or about $45 USD per month as the rent.
My goal is to build my account. As I increase my vote value through the extra 10K HP loan, my curation effort should in turn attracts more attention and solicits more votes for my posts.
I feel sufficiently exposed to Hive with my 10K High power and do not need to take more risks. Instead, if I can grow my account by leasing some Hive power at fraction of the cost, I think that is a nice mitigation of risk.
Furthermore, renting Hive power when Hive prices are depressed means that the rent I pay is cheaper, assuming there is no drastic change in the expected interest in the DLease market. Therefore, it may not be a bad idea to lease some Hive power now that the Hive price is kind of depressed compared to the last few weeks.
To assess my ROI, I can base it on whether my curation rewards 2 months from now at least pile up an additional 113 HP beyond the 60 HP, since I am yielding 60 HP for a 10K HP account. This is based on my previous tracking.
I am unsure if I would have made the right decision, but I plan to spend some rent money anyway.
Wish me good luck! Joining me on this adventure?
P/S: This is not financial advice, and please do your own due diligence before investing.
If you read this far... and if you are a like-minded Hiver who is on the path to learning more about Hive and crypto investing, and if you like to be tagged when I write such posts, I welcome you to leave a comment below and let me know. We can form an alliance to support each other's growth.
You might be interested in this post, @thatkidsblack, @graciousvic, @deflacion, @jacoalberts, @young-kedar, @svanbo, @sumotori, @zakludick, @poplar-22 and @hankanon!
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