When we think about Hive Backed Dollar (HBD) the first thing that comes to mind is the higher APR which is 20%. I would say it is not just higher instead it is just awesome APR because 20% is something that we hardly get in any project and that too on the stablecoin. The good thing about the stablecoin is that we need not worry about the price in the market and since here it is helping us earn 20% per annum which is just awesome and I don't think there can be any other option better than this to earn more.
This morning I saw this post about HBD APR reduction and the aim is to bring it down to 10%. It's going to be half of what we are getting as of now but there is no deadline or any specific date mentioned for it to happen. sin cities started so I believe soon we're going to see the implementation happening on the APR. I still remember that there was a time when we were not getting anything for holding HBD in savings and it started initially with 3% and continued to grow from 3% to 20% is such an amazing percentage I would say. Because of this higher APR with hbd in savings, many people started accumulating more hbd in their savings because undoubtedly it is one of the best ways to earn on this platform.
In the real world, it is very hard to earn 20% returns on the investment but here at the hive, it is easily possible as of now. I'm not sure of the technical aspect of this and whether it is sustainable for the long term or not but I believe if hbd apr is reduced then people might start the conversion from hbd to hive power/hive. With curation, we earn approximately 8 to 10% and since HBD APR is also going to be almost in the same range possibly it will result in a price increase for high as demand is going to increase. Lots of people have very good holding with HBD savings and I think it is really a good option to go for as per the current APR offering and even people have certain goals to build a better holding in future.
Now because we are going to see a reduction in the APR and I'm sure that many people would be sharing different strategies that how they are going to make it with HBD or HP. HBD is a decentralised stable coin and it has proven its existence so sometimes we see the price drop but it recovers faster because of the hbd stabilizer. I can say that it is better than Luna which was offering 20% and it crashed and people lost a lot of money on this so-called stable coin. While with HBD I have seen people only earning and sharing their money-making journey so in any case HDB is the better option. Many people might not be happy with this APR reduction because we do not want to lose the earnings that we get constantly so it will be interesting to see what they do and whether are they going to be fine with the reduced APR which will land to 10% down the line.
I am more focused on Hive Power (HP) rather than HBD because I think that is a better option as of now. I earn about 8-10% through curation and since the hive price is low, it is good to have more. I had thought that once the hive price goes to $1 then probably I will convert some hive to HBD but now with the reduction announcement I am not sure about it. I will think about it again once the hive goes back to $1 but I expect that the hive price should go up once HBD APR is down. So what are your thoughts about this upcoming change on HBD APR?
Thank you