Okay, this report bleeds into the first few days of August when Japan broke the markets…
Don’t blame me. I only live here.
Apart from worries about the US economy and escalating tensions in the Middle East causing the Nikkei to plunge, another factor is the sudden reversal in interest rate policy in Japan…
Until recently, life was nice and cushty for speculators, with the Japanese yen sinking against the dollar as Japanese interest rates remained much lower than those in the USA. That meant speculators could borrow super cheap yen, leverage their loan, and invest in US stocks, Bitcoin futures or US government bonds. When the loan repayment was due, they’d be in profit, and the yen would most likely have dropped a bit more, so it was in effect, money for old rope. It was dope, but suddenly, those speculators look like dopes as US interest rates fall, and Japanese interest rates rise – and the yen starts to gain against the US dollar again.
Now, suddenly, lots of speculators are getting liquidated… but still have to pay back the yen they borrowed to fund their positions. DOH!
Why do speculators continually imagine that temporary circumstances are permament? House prices will always go up… the yen will always go down and Japanese interest rates will never go up again… Bitcoin will keep on rising… yadayadayada.
How did all this affect my Hive micro portfolio?
HBD Steady As She Goes!
The best news is that my focus on HBD has paid off. With Hive dropping to $0.15 and various other tokens, such as SPS, dropping… HBD just keeps on going. Okay, it dropped a bit with the first news of the crash but seems to be dragging itself back up to parity give or take a few cents. And 20% per annum (paid monthly) now looks like a nice way to take things easy in turbulent times.
By the way, I don’t try to guess what Hive will do by swapping out of HBD just because Hive is down to $0.15. I don’t care if Hive zooms up to $1 or more before Christmas. For me, HBD at 20% per annum is a safe haven for a large chunk of my crypto pot. Also, 20% compounding is incredibly lucrative . The only two factors that would cause me to rethink are (1) if HBD loses its peg and (2) if witnesses vote to lower the interest rate. Okay, maybe a third consideration would be if the US dollar crashes and burns…
But for now, HBD is where it’s at as far as I’m concerned. I’m still trying to climb my HBD Freedom Ladder!
My 2nd Tier Tokens
Okay, apart from that, I continued to convert other second tier tokens to buy and stake SPS. The price keeps trending down, and I keep buying and staking, earning interest and anticipating that SPS will turn around at some stage as Splinterlands continues to develop.
Apart from that, I let my other target tokens do their own thing. I’ve started swapping out LEN earnings for SPS to try and hit my 2024 SPS target while SPS is cheap.
| Crypto Asset | 1st January | 1st April | 3rd June | 1st July | 6th August | 2024 Target |
|---|---|---|---|---|---|---|
| HIVE Power | 3,438 | 3,553 | 3,638 | 3,678 | 3,743 | 7,000 |
| HBD | 1,346 | 2,142 | 3,014 | 3,070 | 3,135 | 7,500 |
| Staked SPS | 6,449 | 8,669 | 9,167 | 10,357 | 12,451 | 15,000 |
| CTPSB | 252 | 275 | 276 | 276 | 277 | 750 |
| LEN | 1,234 | 1,477 | 1,261 | 965 | 677** | 3,500 |
| Staked LEO | 1,518 | 2,273 | 2,280 | 2,282 | 2,284 | 3,500 |
| BBH | 1,046 | 8,088 | 8,627 | 8,912 | 9,260 | 10,000 |
BBHO Airdrop
I had a nice surprise the other day when I noticed a NEW token had been dropped into my wallet: 120 x BBHO (currently selling at around 1 HIVE a pop)! I got the airdrop because I had sent just 6 BEE to @bradleyarrow to support his BBH token project, which is well worth checking out. Here’s his post about the airdrop:
Cheers!
David Hurley
#InspiredFocus
