I was minding my own business...oh, maybe not...I was looking at someone else's wallet and saw they were getting payments from dlease and had to know what that was all about. You see, even though I was on SteemIt years ago, I had stepped away long enough that when I came back to Hive, it didn't seem like much had changed other than there didn't seem to be one centralized way to access the platform...I'm going on a tangent from where I want to go...I found dlease paying someone and wanted to see what it was about. I found out what it was...let me share a story. It's worth reading and is necessary to make my point...
My father was a finance major in college. As I was growing up, I remember distinctly seeing a sheet of paper in his office that had a rows of numbers...big numbers...I asked him what it was. He pulled it from the wall and showed me that he had calculated how much he needed to save per month at varying interest rates over varying numbers of years to accumulate different amounts of money. He essentially had created a table that showed him if he saved just enough for long enough, earning interest along the way, his investments would make him, or anyone for that matter, a millionaire.
Dlease is a way for you to lease out your HivePower. Many people freely delegate their HP to others because they support their message or curation, or whatever...However, I found that Dlease was a way for someone like me to lease HP from someone else, or lease it to someone else. Anyone with HP can lease it out and anyone with little amounts of Hive can pay to lease some HP for a time.
Now the point-Compound interest
What is compound interest? Compound interest is when the interest income from your investment gets reinvested with the original/ongoing investment so that it also earns interest, thus interest gaining interest.
Einstein is reported to have said that the 8th wonder of the world is compound interest and that he who understands it earns it and he who doesn't, pays it.
I spent a couple thousand bucks on Hive...or rather, I converted a couple thousand dollars from USD to Hive currency. After powering it up, I started leasing out via dlease. The top rate at the time was around 10%. It is now around 15%. This is important. Have you ever heard of the rule of 72?
The Rule of 72
Teaching you this rule, alone, should be worth at least a 72% upvote, if not 100%😎...if you didn't know it before. The rule of 72 is a way to determine how long it takes for you to double your investment with varying rates of return. Assuming you reinvest all your gains, you divide 72 by the interest rate you're earning and the result (quotient for those who like the math names) will be how many periods it will take to double your money. I use the term "periods" because if you earn 10% per month, it would be 7.2 periods...or months to double your money as long as what you earn is immediately reinvested.
=number of periods required to double an investment's value
=interest rate per period, as a percentage
I took the above images conveniently provided by google.
Do you understand now why dLease is amazing? If you truly believe Hive will be worth the same or more in the coming years, dLease providing leases at 15% will allow you to double your Hive every 4.8 years (72/15=4.8). That's an amazing ROI (return on investment)!!!
There are other places to park your money, but if you don't come on Hive too terribly often to spread your HP seed, then it may be worth it to increase your investment via a HivePower loan...smart contracts...gotta love 'em! By the way, there are other places to park your money and earn interest, too...Put ones that you know about in the comments (like Dai, etc)...help a community out!
