The mechanism of Hive power, where you lock up your stake to get more influence on the platform, is really genius if you ask me. Once you power up you essentially show that you are willing to put some skin in the game, that you believe in Hive in the long run, and that you are here to be active on the platform. In the same time it’s a double edged sword, since you can’t just extract your money at a moments notice, more precisely we are talking about 13 weeks.
So if it means that you believe in Hive if you power up, what does it mean if you power down? Have you lost faith in the community and blockchain, are you taking your money to leave and buy other crypto instead or just turn it into fiat to spend it on shopping? I guess it’s these questions that make the subject a bit taboo.
For me I have always believed in the platform, I have earned most of my Hive power from hard work. More than 13 000 posts to date. Something I’m proud of and see as an accomplishment. I think I have powered down once or twice before but not a substantial amount. But if I look back I’m happy that I did power down when I did and took some profit and diversified. There is a big difference in powering down a part of your stake and to power down everything.
So why have I chosen to power down recently. Well again I think it’s a good time to do so. If looking at the chart of Hive and also looking back at the chart of Steem there are usually real intense pumps and then big drops. The window is not big to take action.
What is very interesting and what I have noticed is quite a big difference from Steem backed dollar is that HBD is very stable; just look at the chart.
So this time around I figured I’m gonna try something new. I’m gonna power down and convert some of the Hive to SBD. Then I’m gonna wait and as long as the price of Hive will be lower than it is today, I can convert it back, it will just be a waiting game.
Of course the risk is that Hive will not come down from here but I’m trying to play the patterns and historical fluctuations in the market, and hopefully I’m right and can later on power up with an even bigger stake.
So there are many nuances to powering down, it doesn’t always have to mean one is leaving or that they stop believing in the platform, on the contrary it might mean that someone is trying to use this opportunity to further improve their stake on the platform in the long run.
Right on time my first power down payout has arrived and I have just started converting. Let’s hope my strategy holds.
How do you look at the action of powering down ?