HBD - The Most Reliable Wealth Creation Tool Of 2022
What A Year!
Well, 2022 has definitely been the year of the bear. It’s been a rough ride, jam-packed with one catastrophe after the next. That is unfortunately how bear markets tend to go. Just when you think that things are about to get better, another blow strikes. Finding shelter in the form of a stablecoin is one of the best strategies during a bear market. Fortunately, I did apply this approach and moved into stablecoins back in 2021. However, if you did likewise and decided to earn some yield while you wait, chances are you could have come out a lot worse than the hodlers.
I say this due to the collapse of the lending industry, most notably, Celsius. Fortunately, I removed my holdings from Celsius and BlockFi just months before the collapse. This is not my first bear market, and I have seen how centralized exchanges and other Crypto companies can get wiped out when the bear comes out to play. However, amongst all the chaos there was one asset in particular that proved to be indifferent to the bear market. Hive’s Hive Backed Dollar has not only preserved value for holders, but has gone on to produce unparalleled yields.
A Notch Above
When you consider most stablecoins, the yields are not comparable with HBD, and the risk factor is also of concern. In order to realize yield on your typical stablecoin, you will have to make use of a lending service. After all the recent carnage in this particular niche, I think the majority of investors would think twice. Even though all investments incur risk, I am sure many would rather make use of a staking/saving protocol, similar to HBD. How many investors have lost stablecoins due to the collapse of the lending sector?
Consider for a moment, the level of safety that has been achieved by investors who opted to invest in HBD. What makes this option even more attractive is that you hold the keys and can recoup your investment at any time. Withdrawals are not halted, or up for debate. You simply withdraw your investment when it suits you. When you add a better yield to a more desirable mechanism, it’s almost perfect.
Double Up
Last time I checked, the benchmark lending rate for stablecoins was somewhere between 8% and 11%. Being able to basically double your yield via HBD, is another significant perk that separates HBD from the rest. The official yield at the time of writing is 20%. If you continue to compound these returns over time, it can be a game-changer. HBD can also be an extremely viable income model. There are numerous use cases for HBD.
As a form of payment due to price stability
As a wealth creation tool via “SAVINGS”
As an income generator via “SAVINGS”
These are the three primary use cases of HBD, which anyone can utilize. Creativity within this economic construct can prove to be extremely viable for investors.
Traditional DeFi
The yields available in the DeFi sector may appear to be a lot higher than HBD. However, you have to consider the losses that DeFi tokens have suffered. In theory, a higher yield sounds like a better deal, when in reality it is actually negative. During a bear market, token value depreciation is far greater than the DeFi yields on offer. Throughout a year of absolute carnage, HBD has held value, as well as provided 20% per annum. This is a lot more impressive than many are able to comprehend.
Perhaps, if you have suffered significant losses during 2022 you are more likely to appreciate this investment strategy. Yes, values will eventually rise, but it’s better to benefit from a bear market than to suffer because of it. Once again, perspective makes all the difference!
Final Thoughts
In short, simply hodling HBD and compounding profits during the course of 2022 would have seen any investor outperform the market, and all of this took place on a blockchain that definitely deserves a lot more attention, Hive!
Disclaimer
First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in me receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.
This article was first published on Sapphire Crypto.
Comprehensive list of referral links for platforms & opportunities I utilize to generate daily Crypto income.
I get paid over $120 per hour working from home with 2 kids at home. I never thought I’d be able to do it but my best friend earns over 10k a month doing this and she convinced me to try. The potential with this is endless. Here’s what I’ve been doing…https://WWW.WORKSCLICK.Com