Albert Einstein, one of the greatest physicists of all time once quoted - "Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn’t … pays it.”
First, we should understand the meaning of the compounding interest:
According to Investopedia, compounding interest is simply described as "interest on interest". That means you can receive an additional interest in both the initial principal and the accumulated interest from previous periods.
Original Source
HIVE is one of the best places to practice the concept of "Compounding Interest or Interest on interest". Being an active curator, you can enjoy this compounding interest on top of the HIVE chain.
When you look at the Curators of the HIVE chain, you can see their APR(%) of the previous week's curation through Hivestats.io. If the curator is not powering down, all curation rewards will add to his / her main Hive Power & the next curation vote will start earning more rewards.
Original Source
The witnesses of the HIVE chain offered you another compounding opportunity as sharing 10% APR worth interest on Hive Back Dollar (HBD). savings. This interest pays per 30 days (or monthly).
Therefore you have another opportunity to compound your HBD (soft-pegged to USD) investment top of the HIVE chain as well.
(Tribe token-based additional rewards will discuss in an upcoming chapter)
First, we should understand the meaning of the compounding interest:
According to Investopedia, compounding interest is simply described as "interest on interest". That means you can receive an additional interest in both the initial principal and the accumulated interest from previous periods.
Original Source
HIVE is one of the best places to practice the concept of "Compounding Interest or Interest on interest". Being an active curator, you can enjoy this compounding interest on top of the HIVE chain.
When you look at the Curators of the HIVE chain, you can see their APR(%) of the previous week's curation through Hivestats.io. If the curator is not powering down, all curation rewards will add to his / her main Hive Power & the next curation vote will start earning more rewards.
Original Source
The witnesses of the HIVE chain offered you another compounding opportunity as sharing 10% APR worth interest on Hive Back Dollar (HBD). savings. This interest pays per 30 days (or monthly).
Therefore you have another opportunity to compound your HBD (soft-pegged to USD) investment top of the HIVE chain as well.
(Tribe token-based additional rewards will discuss in an upcoming chapter)