Yield vs. Dollar Stability Why HBD is worse and better for the same reason!

When Bitcoin/USD goes up like this, the question is whether it will simply continue or in this case defy rationality as markets sometimes do and drop with the halving of the block reward around the corner.

"The Market Can Remain Irrational Longer Than You Can Remain Solvent"

The bull market is the time to sell. I am buying alts. Bitcoin is going to go from crazy prices to crazy high fees and it is not a nice game to play for everyone when that happens. The ECB has been poo-pooing Bitcoin and that is good for us. You can continue buying Bitcoin at the pre-million dollar levels. I have also seen rise in the Litecoin/USD price in the past few weeks.

Of course when most people say "Bitcoin goes up", it really is the "Bitcoin USD pair" or "Bitcoin in terms of USD." Bitcoin's price in terms of Bitcoin is the most stable asset.

The Thorchain network allows you to buy and sell crypto and the best thing about that is a downloadable front end. There is a whole lot less risk of some CEO "accidentally" losing the money on purpose. The risks of bugs still remain of course.

So looking at Thorchain we see there are liquidity pools for stablecoins. I don't know about everyone of you, but I am accustomed to Bitcoin/USD going up by 200%, and the corporate media will be quiet about it. It will correct down 33% from there and then the corporate media will be all over that.

The corporate media choose their time-frames in order to influence public opinion in general. It is not only Bitcoin but they do a similar thing with #climatechange. Choosing the coldest time in the Holocene as the starting point. They rely on zooming in too close to promote their narratives. By narrowing in on the last week before and including the correction, a story of "Bitcoin crashing" is told.

Those of us who convert prices to Bitcoin, or other cryptos see a price drop in everything except for Bitcoin itself almost all the time. However, the Bitcoin/USD price has taken huge drops in the past. These mostly happen after a bull run like the one we are in now.

Timing the market has always been bad for me. I am also keeping HBD in savings. Thorchain also allows a kind of interest earnings via the liquidity pools.

You can trade six different Ethereum based stablecoins. These are #dai, #usdc, #gusd, #usdt, #lusd and #usdp. On the other hand you can also trade the #USDC on the BSC chain, on the AVAX chain.

So you could trade from any one of these eight dollar stablecoins to any of the other seven dollar stablecoins. #HBD is not one of these eight.

Thorchain also has very popular cryptocurrencies, the base layer coins that tend to have a better liquidity as an example.

The liquidity pools of these eight stablecoins provide a better yield than what HBD gets in savings. The problem is, these pools have to be half Rune. During the bear market, Rune crashes in the USD price. So for example if you have $10 Rune at the top of the bull market in a few months and you buy 10 Rune and $100 USDC in order to have $200 in the pool, and then there is an event that hurts Bitcoin's USD price, if Rune corrects down to $7/Rune, you are
now down to $170 in the pool. You will end up with $85 USD worth of a stablecoin and 12 Rune. The yield will compensate your dollar loss in this scenario though. Ethereum and Bitcoin fees take a bite if you are talking about investing $100. There are costs in terms of spread though. You should shop around to find the best deals for trading.

For those of you who are new, currently there is a 20% compounded monthly yield with HBD. That is 1.5% per month. There is no exchange rate risk like there is with a pool. As long as the peg holds, if you start with $100 HBD, you will have 120 HBD and about $120 USD in value by the end of the year.

☘️🍀🍀 leprechaun

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Posted with proof of brain