So I feel like an idiot for realizing this so late, but I think this post could help others... So here it goes!
New users to Hive will have noticed that they get their payout in Hive and HBD if one hasn't changed this default option. So essentially you are getting 50% Hive Power and 50% HBD as your payout. Now the question is, what to do with that HBD?
You probably noticed that there is the "converting option" right next to your HBD balance. This is what I think many users probably do with their HBD; simply convert it to Hive and then one is able to power up more Hive! Well this is where misconceptions started to happen for me as I always thought that this HBD was being converted over three days for the average price ratio of HBD/Hive. Right? Well yes and no!
First, yes... it is the average price of Hive over those 3 days into which HBD is being converted. BUT! This is being done against the fictitious peg of HBD to 1$. However, HBD (in case you haven't noticed) hasn't been pegged to 1$ lately. In fact, it was over 3$ yesterday. So... if you are using the converting process, you are getting currently a lot less for your HBD as it is traded at a much higher value on the market currently...
I think not enough people are aware of this, hence the post.
So what should you do instead?
A much better option currently is to use the internal market for HBD/Hive which can be found when clicking on Hive
Just be aware that HBD being traded above 1$ isn't going to last forever and has often been under that pegged value. Ultimately, I hope that Hive will have a much more stable HBD in the future which is currently underway!
So again... this is old news, but I didn't "get it" until now after 3 years on Hive/Steem which is embarrassing 😅 I reckon that many newer users didn't know about this before as well. So I hope this will be helpful to some :)
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