Consolidating Power

The phrase "If you don't hold it, you don't own it" is most commonly attributed to silver and gold stackers. The idea is that if you don't have an asset in your possession and/or control, you really don't own it. The same can be applied to crypto.

When COVID hit and things shut down, this became painfully real for many people. Those who thought their gold, silver and other valuables were safe in a safety deposit box at their bank suddenly couldn't get access to it. Here's just one of many examples:

(Source)

I told myself that I'd start taking profits no earlier than one year after I started on Hive. Time flies, and that date will be here in about four months. In the meantime, I've been investing funds into as many worthwhile projects as I can find to build a passive Hive income.

Now that I'm getting closer to the point of taking profits, I'm reconsidering my investments. I haven't lost faith in any of them, but I am now more focused on consolidating and ensuring I have control.

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These are some areas where I've started adjusting my exposure.

Liquidity Pools
When you put funds into a pool, you are exposing them to the possibility that someone could use the pool to swap funds and you'll be temporarily running a deficit until someone else adds more liquidity back into the pool. This is also operating on the assumption that there will be more people coming and adding liquidity, which isn't a guarantee.

Miners
These are tokens you hold and receive daily mining rewards paid out in Hive-Engine tokens. I have quite a bit of EDSMM that mint me daily EDS tokens. Those EDS tokens then net me a weekly Hive dividend for holding them. There may not always be a market for these, so I'm reducing some of my exposure here.

Bond Tokens
What I mean by this is Hive-Engine tokens where you send Hive or HBD in exchange for these. By holding them, you get paid daily or weekly dividends in Hive, HBD, or some other token. An example of this is EDS-D tokens. You send HBD and receive EDS-D in return, which pay weekly EDS dividends. EDS tokens, in turn, pay weekly Hive dividends. When you want the funds you sent back, you send the tokens back and get your Hive or HBD back.

Consolidation
What I'm doing now is pulling my liquidity and calling in these bonds. I'm amassing liquid Hive purely for the sake of powering up. Why? In the case of EDS, I can still delegate my HP out and receive EDS in exchange. If I decide to go in another direction, I can pull my delegation and the HP stays with me. The HP also grows the whole time I'm delegating.

If I decide I want to take some profits, I can initiate a power down. I don't plan on it, but this is at least a nice option to have. It's one I don't have if the liquid Hive I've used for liquidity or bond tokens is locked up. So, this move not only ensures I have more Hive and HBD available to me, but gives me more flexibility to invest in other projects. I'm sure more will come as Hive starts to experience its bull run cycle, and I want to be well-positioned for it.

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