I leased 1000 HP for FOUR weeks
One month ago I decided to get a lease of 1000 HP using the Hive-Engine. It seems ease enough. Click on lease. Decide on how much you want to lease and how much you are willing to pay per week and click request. If someone is found to match your request you will have extra HP for the duration specified. The actual screen is very much like this one:
Image created by Dall-e
Of course it looks good when you look at that screen. I'm paying 9.95% for a lease of 1000 HP and if I curate with that much HP I can make up to 13%. I win, horray!
Except the math is wrong. Very wrong.
Let's look at how much is actually paid.
In this scenario I paid 2.5 Hive per week to get 1000 HP.
Assume 52 weeks a year * 2.5 = 130 HIVE
130 Hive to get 1000 HP? = 130/1000 which equals 13/100 = 13%
Actually paying 13%
How does the website figure out that it is 9.95%? I have no idea but it certainly doesn't fit my idea of per cent and regular math
But I paid 13% and I'll get 13%
I should end up breaking even in this scenario. Right?
Nope.
How much did my delegation efforts get me over the period of the lease?
5.297 Hive
In what world is paying 10 Hive to get 5.297 Hive a good thing? At first glance it is never a good thing. This is Hive though and upvotes give curation rewards to the voter and posting rewards to the poster. If I got 5.297 HIVE that means that those people I upvoted got 5.297 HIVE also. All those people were members of the Great Little Dragons community, friends or those I follow. I paid 10, I got 5.297 and gave 5.297 to others. I got 10.594 Hive value for 10 Hive paid.
If I include the value I gave to others then I broke even and even just a tiny bit positive. Still...
0.594 Hive positive for four weeks?
That's not worth the effort. It is so little value as to be negligible.
Does Leasing make sense?
I'm going to put leasing HP as a not worth the effort option right now.
If I got the lease for half the price then sure it would make a lot more sense. If I needed more HP to do something like create usernames then yes it would make a lot more sense.
For now this I think this account will go dormant. I came, I leased, I upvoted and made a return. However the return was so meager as to be unworthy of the effort involved.
If you are reading this I hope it gives a little insight. I hope it prevents you from losing money because of misleading information on the lease screen. Leasing isn't bad or wrong but it is not a simple plug and play way to make money.
Hmm...
Or maybe it is :)
I might have to look into the profitability of leasing OUT my HP to others and take advantage of the systems wrong "return" calculator to get more profit for myself.
But that will be something for another time.
For now its time to retire this account until I can get more HP and lease it out to see the profitability of leasing out VS curating.
Thanks for dropping by.