With HBD paying 20% interest during these chaotic times when lots of people are losing on the market, "the power of compounding" has become a popular topic.

Typically, the discussion takes the form of "If I put 100 HBD a month into savings, how much will I have in 30 years?" and ideas along those lines.

Like many around here, I'm immersed in the world of "Greater Hivelandia" for the long term. I don't care a great deal about short term market fluctuations because I am not a seller, and I'm too liquidity poor to "buy the dips."

Compounding Value, Applied to Posts

But "compounding" can mean different things... including the compounded effect of something you do, that keeps replicating over a period of time.

What on EARTH am I talking about?

Let's for a moment imagine a situation in which you create 10 posts... let's say in the course of a month. And let's say that you power up all your liquid rewards. And let's say that during that imaginary month, you power up 100 Hive in total — that is, your total Hive Power increases by 100HP.

Now, let's also imagine that you are diligent about curating/upvoting 10 posts a day, so you earn somewhere close to your maximum potential curation income. I would estimate that 100HP you added equates to curation rewards of about 0.02HP a day.

So — technically speaking — those 10 posts you wrote will keep "compounding" your rewards at a rate of 0.02HP per day in perpetuity!

Might not sound like much, but it reminds me of something I once learned at an investment seminar, where a presenter talked about "the interest on your interest," the point being that you don't just earn a return, but the return you earn keeps increasing over time.

To me, that's one of the very attractive features of creating content on Hive. I might only earn the same rewards on each post, but by re-investing those post rewards in Hive Power, my daily rewards from curation keep growing and growing.

The graph above represents my own minuscule curation rewards. Lately, I have been posting more and earning more rewards that have increased my Hive Power balance. Even for a small account like mine, you can see those rewards "going to work" for me... i.e. compounding my return.

And that's what I plan to keep doing!

=^..^=

Curator Cat 03-JUL-2022