When I first joined STEEM, I tried reading up as much as I could on how rewards work for posting and curating. There are a bunch of little details about how soon after somebody posts you should vote, percent power of votes, popular votes, courting the votes from whales, and yada yada yada. However, nothing made it clear how some people are able to earn an income from STEEM. Now here we are on HIVE, which inherited the intricacies. I have not found a post that explains to me how people who earn an income from Hive are able to do it. I mean the mechanical details.
It makes sense, when you are first starting out, to stake all your Hive into HP. The larger your HP grows, the larger your piece of the rewards gets, right? So, I tended to post with 100% of my rewards to Power Up rather than the 50% HBD/50% HP option. My rewards were so meager that it didn't make sense to accumulate any HBD (it was SBD at the time). After all, 0.001 HBD would not change the trajectory of my life. Any HBD that I did earn would be converted to Hive and powered up.
Now that my other account has a bit more HP, the rewards are starting to be interesting. They're interesting in the sense that I can see how some people in other countries could earn an income without powering down and selling HP. I realize now why there is a 50/50 Rewards option. This allows the writer to increase their stake and also have a stablecoin to use for withdrawing income.
Hive Backed Dollars are great because you don't have to time the market. One HBD would be worth roughly $1 no matter when you sell it. Once you are past the investment phase of your Hive account where you are powering up all your rewards, you can start to use the 50/50 option to start generating some income.
I still don't know what benefit holding HBD in Savings has. Perhaps it earns interest? Still, it is only now that the mechanisms of having Hive, HP, HBD, and HBD Savings is starting to make sense. Granted, at my level, even on my larger account, I couldn't live on the HBD rewards my activity generates. But, I can see how in some countries this could be significant.
If ever we do have ecommerce on Hive, I think HBD will have a much more important role. The success of USDT, TUSD, PAX, and DAI demonstrate that there is a use for stablecoins. And, if it does turn out that holding HBD earns interest, then it opens up some ideas. For example, I have been depositing TUSD on Crypto.com to earn interest, which is higher than what banks are paying. Is Hive's HBD interest better than bank interest? I should find out. It may result that Hive is a decent bank as well.
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