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<h1>Can HBD Really Change Your Life?</h1>

A lot of focus has been coming on to HBD lately. Just recently someone picked up 600,000 HBD and that's stirred up the hornets nest in terms of what's possible with HBD. Right now 20% APR is being paid out on HBD which means that person with 600,000 is now locking in 120,000 HBD a year or 10,000 HBD a month. That's $10,000 (as long as HBD stays stable) every month for pretty much doing nothing. If you ever dreamed of passive income HBD interest rate right now would be it.

### 20% APR

There's been a lot of talk about the 20% APR rate and if it's sustainable or not. Everyone keeps coming back that it is but to me personally I believe it's not. 20% APR continues to constantly put negative pressure on hive or worse could quickly be converted into massive amounts of Hive buying and potentially put it at risk again like what happened with Steem back in the day.

While I don't know all of the details to me this high 20% APR brings a few things.

1) HBD provides no value to hive itself as it's a sit and forget token. You do no curation with it you simply lock it up for 3 days and earn 20% APR right now.

2) Having said the above that's also a bring plus and why people would be attracted to it.

3) I see it brining constant negative pressure to the price of hive but that of course depends on what people do with the HBD are they buying hive with it or simply collecting and exiting?

4) 20% APR is not sustainable I don't care what anyone says. It will eventually catch up with you.

Because of that last reason I see 20% being reduced soon or some time this year already. Most likely somewhere around the 10% -12% range which is still rather high. This is to make it comparable to staking hive and earning curation rewards.

### Some Math

So how much HBD might you need to live off of.

In most cases in the USA you would be looking at needing 182,500 HBD in saving to earn 100HBD a day which should be $100 a day. That's pretty comparable to a full time job and would make ends meet for many. It's a large investment sure but it's a far smaller investment compared to what would be needed in a retirement or savings account which would pay you around 3%-5% APR with relatively low risk.

Want to start living that upper middle class life?

That's going to cost you 365,000 HBD in savings at 20% APR will land you 200 HBD a day

Want to live closer towards that upper class life?

That's going to cost you around 730,000 HBD which would land you 400HBD a day

As you can see over time and by having funds on hand you can really add up some serious values with staking HBD for just a 3 day lock up period. It's honestly crazy when you really think about it.

### Will It Go On Forever?

Personally I feel 20% has a limited life of maybe the rest of 2023 depending on how much HBD is placed into savings and collecting interest. This is because at some point it would be impossible to keep up with. This is where adjustments will need to be made by the witnesses on Hive. This rate would most likely start to slowly go down instead of an abrupt decrease. I would expect the first being a 16% APR and then falling to around 10% which is should hold for the most part. That's still a sizeable income with what should be minimal risks compared to trying to get those returns in the stock market.


*This article is for entertainment purposes only and is not financial advice.


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