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Leasing Hive Power Gains With Market Pump

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@travelwritemoney
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One of my alt accounts is used for holding the majority of my Hive Power. That account does not get a great deal of use. Thus, it makes sense to lease out portions of the account's Hive Power. The interest rates vary on each lease. Currently, we have leases with returns from 13% to 16%. When Hive is at $0.12, the returns are not that exciting. Let's say you have $1000 in Hive. That type of return will yield between $130 to $160 over the course of a year.

Now, let's say that with today's Hive price pump your account has jumped to $3000. Suddenly, your return is between $390 to $480. This is without curating, posting, or commenting. It is possible to just set up your leases and walk away, checking in from time to time to manage the leases.

This is one thing that I think is underappreciated about the Hive ecosystem. You have the option to earn passively through leases. As the size of your stake increases, you have more Hive Power to lease out. The velocity of money can be amazing in the long-run.

In tokenomic terms, leasing is advantageous to the Hive community. In order to lease Hive Power, you need Hive tokens to make payments. These are tokens that potentially would have gone to the exchanges.

For those who see the power of compounding that is inherent in leasing, it makes sense to build up the position over the long term. This captures all the loose Hive tokens and locks them up to continue to lease out. Obviously, this reduces the supply of unstaked Hive.

After many years, leasing can be the source of retirement income. Let's say you are able to build your Hive Power to $300K through your hard work and through leasing. If you can lease that out for about 13%, that yields about $39K in interest income.

$300K sounds a bit out of reach. However, at $0.50 Hive, it would require 600,000 HP. Yes, that's quite a bit. At $1 Hive, that is 300K HP needed. That's still quite the feat. At $2 Hive, you only need 150K HP. What if we reach $5 Hive? That's 60K HP. Now we are seeing that it's quite possible. Especially if we are thinking about Hive in 10, 20, or 30 years. Hive leasing can be a source of great retirement income.

But, imagine you aren't ready to retire and you have managed to grow your Hive Power to $300K. Instead of cashing out the Hive income, you reinvest it. How insane is it to have $39K to reinvest in your Hive Power? Even if you have half of that, or one fourth, it is significant investment.

I think a reasonable short-term goal is to reach 10,000 HP on your account. At that size, your account is able to generate roughly 1000 Hive in income either leasing or through activity at a 10% return. If you recall, that first 1000 Hive was extremely difficult to earn. Using simple maths, you're looking at 10K Hive in 10 years, 20K in 20 years, and so on. Of course, the actual number is much greater because your account will be compounding that growth.

The only limiting factor in all of this is the market of people willing to pay to lease Hive Power. But, in the world of finance, a cost of capital at 13-16% isn't all that bad. Even if rates drop to 10%, it is still reasonable to expect large long-term gains.

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