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Why More HP Goal Than HBD

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Remember when the APR of HBD savings was set at 20%, some of us were actually more worried that people might start focusing on saving and buying more of HBD than Hive itself. I got worried too, because it actually made sense buying a StableCoin with low volatility and earning 20% APR without doing anything. Compared to buying Hive, staking it as Hive power and curating people’s post to earn 10% APR. To anybody hearing about this for the first time they might likely buy more HBD than Hive. But Hive’s volatility that makes it seem like it’s greatest risk can also be its greatest advantage.

You can never fully understand the crypto market, you can never fully predict it. I am not regretting saving some HBD savings and I am not regretting having the number of HP I have. Infact I am mad I don’t have enough, because I want both so badly, because I see great value in both. HBD and saving it is good for one’s financial stability especially in this crazy crypto world of volatility and it also helps in coming to the rescue during the times of financial needs. Just like I am about to do withdrawing my over 500 HBD from my savings because it’s about to save me or rather help me achieve what I want to achieve.

HBD is not as volatile as Hive, it’s stable, so if you are saving on HBD, you are rest assured that if you need $20 you can easily take 20 HBD from your Savings, when you need it the most.But you cannot vouch for the same value with Hive when you are dire need, you could be lucky, to have more or you could be unlucky to have less value, depending on the price of Hive the time you want to spend it compared to the price you bought it. So in my opinion, for short term quick profit but low risk and reasonable gains, you can go for HBD and save them on HBD savings, but for Long term wealth building and accumulation, you can go for Hive and Hive power.

Everyone Needs The Blockchain

Hive is the base coin needed to run activities on the Hive blockchain, Hive is the native token, and also the governing token of the blockchain. The Hive engine tokens are valued using Hive as a means of value measurement, you use Hive to buy them in the Hiveengine market. Hive power is needed for resource credit which is needed to do things on Hive, so everyone needs Hive and everyone must always have Hive.

You can’t do most things without having Hive power, but you can do lots of things without having HBD, as long as you have Hive power. So there will always be more demand for Hive than HBD, and as for the volatility which is one of the reasons people consider investing on HBD over Hive, we can see what happened to the Hive pump few days ago. Hive has pumped 40% in 7 days, 59% in 14 days and 20% in 30 days. It’s still considered a risk because people that bought Hive at $1 haven’t had their break even yet, but over time they are going to including their 10% APR curation rewards and 2.89% HP rewards. So volatility can be a blessing or a course depending on its mood for that day.

Hiver buyers might start ripping the reward in a few years when the price for Hive starts climbing from single digit to double digits. It’s a matter of choice and choosing what risk you prefer. Hive is the base coin and will always be important and much needed(demand) in the eco system.

Posted Using LeoFinance Beta