Recently, HBD has been trending owing to the votes by witnesses to increase its interest rate to 20%. Most persons are definitely and clearly happy about this.

But, are there things you need to know about this recent development? Let's go through key highlights from two posts made in this regard and highlight some learning points.

You don't need to be left in the dark, neither do I. So, let's get started.

Disclaimer: This is not an absolute representation of the views presented by these authors, and this is definitely not a piece of financial advice.

1st Let's Visit @Taskmaster4450's blog: With HBD At 20% Interest Will Everyone Abandon Hive Power?

In this post, he clarified how the Hive - HBD relationship works and why it is unlikely that most persons will convert their liquidity from Hive to HBD because of the attractive ROI on HBD. Here are some important points to note so that you don't just rush into pushing Hive into HBD:

• Hive power cannot be obtained from HBD (at least not directly), and Hive power remains the fuel of the blockchain. This means that you cannot interact on the blockchain without Hive power. So, 1000 HBD in savings or in your wallet does not equate to an equal amount of HP. He highlighted thus:
  

Resource credits come from Hive Power
So, just chill and make a calculated investment.

• Hive Backed Dollar (HBD) is a stable cryptocurrency. Thus, unlike Hive which may enjoy moments of significant Bullish and Bearish moves, HBD is different, as it doesn't fluctuate so much. So, it may not be as profitable in the long term as HODLing Hive (note the word "may").
• Your Hive power, not HBD is your influence on the blockchain. So, governance is only made possible through Hive power, and not through HBD.
• HBD holdings and interest cannot replace Hive power and the values it presents on the blockchain.

2nd Let's Visit @Geekgirl's post: 20% APR For Hive Dollars | Decentralization In Action

In this post, she considered some benefits of the 20% increase in HBD APR. Generally, @Geekgirl had an optimistic view on this. Here are some highlights from the above post:

• The increase in APR could be generally safe to the blockchain as the Hive witnesses must have done all due diligence before making this move.
• Increase in HBD (Hive blockchain's stable coin) could result in heightened interest in the Hive blockchain which could increase onboarding and public interest in the blockchain.
• Witnesses that quickly adopt the new APR could earn themselves good PR and subsequently more votes on the chain, which is more governance points.

Conclusion

Both authors must have made newer posts till this time, but they both presented valuable arguments for the HBD's 20% increase in APR. In the first author's opinion (@Taskmaster4450), it could be deduced that the hype around the APR increase may not be worth the significant excitement as it is currently (it is not the final pathway to your financial freedom), since, for those who want to be actively engaged on the blockchain, more Hive power instead of more HBD savings is desirable.
Conversely, we could see the HBD APR increase as a good PR move that may directly or indirectly attract more persons to the Hive blockchain, and may encourage fund retention on the blockchain, especially for those who may be seeking a profitable alternative for bank savings or savings outside the traditional saving systems such as the HODLing of USDT.
At the end of the day, my take on this is to simply tame the excitement a bit, do some due diligence and strategize the safest route towards maximizing the opportunity provided by this move on the Hive blockchain.