Hello and welcome to ML-BLOG. Being in a system requires one to have the knowledge of the system to excel. To be honest, I've been on hive for quite some time. Even though I've learned a lot about the system, the issue of saving continues to bother me.
The hive ecosystem is a place for all kinds of activities. More like a social media platform, but considerably superior to web2-based social media in terms of benefits. One thing to keep in mind about hive is that you earn profit by doing things correctly.
Hive Account Types
On hive, people can earn money in a variety of ways. Blogging is one of them, and it is more or less the primary. Aside from blogging accounts, other accounts on the hive system are formed for the purpose of curation and many other reasons. This is where the wealthy, middle-class, and impoverished all have something in common.
For a curation type of account, there has to be a published article to be curated in order for such an account to make earnings. The same goes for the blogging type of account, which also has to be consistent in posting in order to make earnings from the system. What are we talking about here? Everything comes down to earnings, and earnings necessitate management, which is why the question is so crucial. Which is preferable for storing hive earnings: hive or hbd?
To achieve an acceptable answer to this question let's understand the benefits of saving in either of the two currency.
Understanding Hive and Hive Back Dollars (HBD)
First, we need to understand that both hive and hive back dollars (hbd) are acceptable currency for the hive ecosystem.
The distinction is that Hive is a free market coin that is susceptible to market conditions just like Bitcoin, Ethereum, and other free-marketmarket coins.
Hbd on the other hand is hive's stable coin which is pegged at the rate of USD, however, the market has little or no effect on it.
One major difference between hive, hbd, and the two account kinds is that the blogging type of account earns in both hive and hbd, at a 50:50 split, until the user changes the setting to 100%, in which case the account earns rewards exclusively in Hive (HP). Curation account benefits, on the other hand, are exclusively in the form of Hive (HP), which requires a power down before any withdrawal can be done.
Leaving Earnings as Hive
Recall I said that hive is a free market coin that is subjected to market conditions. This simply means that saving your earnings as hive can give you a higher rate of your money or a lower rate depending on the market impact.
When I first joined the hive network in December 2021, one Hive was worth $2.4, however, a recent slump that has affected not only hive but the entire crypto market has caused hive value to fluctuate between $0.7 and $1. Consider what someone with all of their money in hive would face. This isn't a one-sided problem; it has two sides. As things stand, there's a chance that hive will one day be worth more than $5, and everyone who saves in hive will profit greatly when that time comes.
Is it sufficient to convert earnings to hive without powering up?
There's a tremendous difference between leaving your profits as hive and powering up, as we all know. Although the hive ecology appears to be decentralized, there is a hierarchical structure among users. This hierarchy influences reputation, which is largely decided by the size of your fully powered-up hive.
So you see, having large amount of hive powered up gives you more control, higher reputation and higher earning rate. However, for whoever is choosing Saving as hive should also consider powering up.
Saving in Hbd
Leaving earnings in the form of hbd is more about securing what you already have without the expectation of receiving more. Consider it as leaving your earnings like a regular bank savings account. This means that money in the form of hbd does not grow or decrease because it is a stable coin.
Hive recently announced a 20% APR for hbd savings. This means that putting your hbd in savings gives you a 20% annual return on investment that grows exponentially.
My Opinion
As a beginner though, I'd prefer saving in hive form. Even though hbd saving offers a 20% return, I'd not see it as the best option for someone hoping to build an account. Don't get me wrong, imagine someone with a 10k hbd saving and another with, probably a newbie with just 200 hbd saving.
With the rate of growth the system experiences, you will notice that the 10k person will likely get an extra 2k annually while the 200 hbd person will likely get 30 hbd per annum. Whereas, if this is converted to hive and powered up can help build the new user's account faster.
Anyway, this is no financial advice but just my opinion to this situation.
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