Just 12 Accounts Received Over Half of the HBD Interest
One often hears the mantra "code is king" while navigating the crypto world.
The basic idea is that investors should invest their funds according the functioning of the code and not the suggestion of pundits.
Witnesses raised the interest on HBD 20%. This makes HBD the preferred token on HIVE; So people should pull their funds from Hive-Engine and put it in HBD. The activity on honey swap indicates that there has been a steady flow of funds from Hive-Engine after the HBD announcement.
@geekgirl published a post listing the top 300 recipients of HBD interest. Her research says that the system delivered 35,223 HBD in April. Interestingly, the top 12 accounts received over half of the HBD interest. Several of the top 12 accounts are not active on the forum. The top 208 accounts received over 90% of the funds.
This next figure is fuzzy. The daily stats from @penginpablo says that we have over 15,000 daily active users on the forum. The [reports from arcange] claims that there is over 600,000 monthly active users. I feel comfortable stating that there is well over 20,000 active accounts on HIVE. I feel comfortable making the statement that over 90% of the HBD interest went to less than 1 percent of the active users.
The decision to raise the interest on HBD to 20% is transferring wealth from the the 99% to the 1%. Gosh, what a revolutionary idea.
Some people claim that the rise in HBD interest will increase the HBD in circulation. This claim is counter to human nature. People tend to hoard their most valuable coins while spending their least valuable coins. Since my saved HBD is my most valuable coin --it earns 20% interest-- it is the last coin that I will spend. I will powerdown and liquidate my low interest HIVE before I touch my HBD savings.
Withdrawing HBD savings is costly. It takes three days to withdraw from my account. If HBD is trading at below $0.95; then I have to push it through an additional 3.5 days to convert it to HIVE. I suspect that an honest evaluation of the HBD savers will show the same behavior. The high interest rate removes HBD from circulation.
My Hive-Engine strategy.
For the last several months I've been transferring my HBD earnings to Hive-Engine and investing in alt coins. My monthly recap shows that my HE investments have been on a rapid decline.
The smart move would be to unstake and dump my alt-coins. But, I am a sentimentalist and I like my alt-coin collection.
I admit. My main interest in collecting alt-coins is that I want to support the communities funded by the alt-coins. I admit that the cookie-cutter tribes are all silly. The smart players on the platform drop a half dozen tribe keywords on each post creating the absurd situation where the same content shows up on the cookie cutter tribes.
But I think that Hive-Engine is the most likely source for new ideas on the platform and I really want to support the alt-coins.
The HBD interest issue has thrown me into a quagmire. I want to support the alt-coins. The high interest says that I should put ALL my HBD into savings.
I look at how the smart players are simply dumping their alt-coins to buy HBD. Abandoning Hive-Engine is the smart decision.
I will write about my HE strategy tomorrow. I think I will end this post with a final note:
Selling HBD at junk bond rates does not make HIVE look strong. Selling HBD at junk bond rates makes HIVE look like junk. HIVE has been falling at a rate faster than Bitcoin in the current bearish market.
The data shows that twelve people are receiving half of the HBD rewards. 90% of the HBD interest is going to less than one percent of the active users.
I hope that the witnesses realize that they blundered when they made the decision to sell HBD at junk bond rates. I will write the post I started to write tomorrow. Everytime I start thinking about HIVE, I get too depressed to write.
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