First, we have to understand what Hive and Hive Backed Dollars (HBD) are about before answering the question.
What is Hive?
Hive is a cryptocurrency just like Bitcoin Ethereum and any other altcoin, it’s a native token for the Hive Blog Platform and just like every other crypto, and it’s affected by volatility, bear market and Bull runs. The hive Blog platform is a web3 crypto mining platform and the mining is done through posting or creating content and earning rewards on them when they are being upvoted by holders of Hive/Hive Power.
What is Hive Power (HP)?
First of all, Hive Power is what enables you to perform activities in the Hive blog platforms, whether it’s commenting, voting, or posting. Hive Power can be gotten through delegations from other users of the platform or simply by powering up your Hive tokens. Hive power also influences other things you do on the Hive Blog platform, it determines the weight of your vote and reward on a particular post the author will receive and also determines the number of posts and comments you can make a day.
Also, the bigger your Hive Power the Bigger your influence on the Hive Blog platform
What is Hive Backed Dollar (HBD)?
Hive Backed Dollar is also a native token of the Hive Blog platform and also Hive's own dollar. It’s a unique type of stablecoin and it’s also a liquid currency you can perform any transactions. The Hive token can be converted to the Hive Backed Dollar and also vice versa but their price values are different.
Which is more important or has more benefits?
The Hive token and the Hive-backed dollars are both important on the Hive blog platform, they work hand in hand and both are essential for the growth of Hive.
The only difference is locking up your hive or powering up your hive gives you more influence and determines the amount of reward you give when voting on posts and also influences how much HP you get in return and also the number of posts and comment you can make.
While for Hive Backed Dollar the benefit is that when you transfer your HBD to the Hive savings it gives 20% APR (Annual Percentage Return) on your HBD monthly. Now imagine putting $100 in the hive savings, you will be claiming $1.6 monthly and receive $20 APR.
That’s all for now, I’m happy to corrections or additions. Thanks!
Posted Using LeoFinance Beta