Over the evening Hive and HBD has taken another noise dive in price. Now HBD is getting close to its design intent of a parity to the US dollar. 1 HBD = $1 USD is the design intent but currently 1 HBD = $1.13 USD. I am not technical savvy with the code but have done some conversions comparison between post earnings and can say that when HBD being traded exceeds $1 USD it is beneficial to exchange it as by design HBD when produce is only worth $1 USD per 1 HBD.
The above post reward is a 50/50 split where writer gets 50% HP and 50% HBD in value of half the total upvote value of the blog post. Now simple break down here is that while earning the rewards the price of Hive was $0.54 USD.
I would pocket $5.959 in HBD and $5.959 in Hive. So the result would be 5.959 HBD and 5.959 / 0.54 = 11.035 Hive. Although not exactly to the 10.999 it is likely the Hive value at the time of reward payout is slight more than $0.54 USD. What is interesting to note is while the actual market has Hive and HBD dropping in value it is a good opportunity to convert the earned HBD into Hive.
The line item above is my buy order for Hive with the earn HBD. The order went through after 3 hours it was put on and interesting to note that I had more Hive than my reward earning in Hive, 16.977 versus 10.999.
Conclusions
When HBD is greater than $1 USD it is beneficial to earn post rewards in 50/50 format. While when HBD is under $1 USD it is beneficial to earn post rewards at 100% HP. The Hive blockchain will always produce HBD with the parity value of 1 HBD = $ 1USD. While Hive will fluctuate as it is depending on blockchain witness's feed price.
I have noticed that the Hive feed price tend to lag the actual trading market price but believe this is due to cryptocurrency inherent trading volatility. After playing with a couple of 50/50 payout conversions to Hive I strongly recommend while prices of Hive is going down to have the HBD converted into Hive. Best of luck to all your trading endeavors.
None of what I write is financial advice. It is for entertainment purposes only. Thanks for reading!
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