Yesterday, I claimed HBD for the first time since the the APR was increased to 20%. For what it's worth, the claimed amount doesn't entirely represent my total HBD earnings for savings because the 20% APR started counting somewhere in the middle.
In any case, my claim for the month of Aprile was 111.6HBD or approximately $112. That's a serious amount of money to claim for simply saving.
In Nigeria, you don't get any considerable interest for saving in a bank. Hell, all things considered, you get charged a glut of charges that range from card maintenance, to bank charges for SMS notifications that the bank sends.
This post isn't about taking a swipe at Nigerian banks though. In fact, from what I've read, the Nigerian banking system is generally better than what you get in virtually every other country.
In Nigeria, we have bank apps that work in pretty much the same way your Hive wallet works. You can simply transfer naira from one account to another, in a matter of minutes. The only time you can experience difficulties is when there's network problem with Interswitch or any other service provider the banks use.
I read that in many other countries, it still tasks days for people to transfer funds from one account to the other. Perhaps our swift value transfer in our banking system is the reason why peer to peer transactions work relatively smoothly here.
HBD income
Anyway, after claiming my HBD for the first time in this new regime, I felt really good about myself. I felt like I was sitting on a pile of gold in my HBD savings and it was fetching me more gold.
Note that the HBD savings system is wired to autocompound, so all you have to do is claim your savings every month and it just works it's way up from there. In one of my previous publications, I analysed what compounding 20% APR will amount in 5 years.
In that publication, I estimated that if you consistently compound 20% APR, in 3 years and six months, you will have doubled your initial investment.
This aforementioned publication highlights the power of compounding and this is what is possible for everybody on hive at this month. The path to doubling your stocks and maybe even consistently Dollar-cost averaging into HBD savings to make more from your income is direct.
HBD savings income will be the bread and butter of this community in the long run. Thanks to the 20% APR, many investors are going to be trooping in to get their hands on the limited supply of HBD that is available.
At the time of writing, the amount of HBD in circulation is nowhere near enough. The total market cap is only around 11 million but to get HBD to the next level, we should be somewhere around 1 billion at least.
Now, considering the HBD algo is based on Hive and I believe there's a ratio that must be maintained between Hive and HBD. This means that we'll need Hive trading at a much higher rate to pretty much 100X the amount of HBD in circulation.
In summary, Hive needs HBD as much as HBD needs Hive to maintain the algo and to mint more HBD. The fates of both assets are eternally intertwined like the fates of Naruto and Sasuke.
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