I completely missed the logic of how selling items reduces the supply. Do you expect someone to make items, exchange them for Hive, and then burn the Hive out of the goodness of their heart? What did I misunderstand?
I completely missed the logic of how selling items reduces the supply. Do you expect someone to make items, exchange them for Hive, and then burn the Hive out of the goodness of their heart? What did I misunderstand?
There is a good chance somebody will exhange this Hive for HP instead of dollars. This is the only answer that comes to my mind.
The idea here is that someone who has the capability to manufacture a product or has access to sub-wholesale products be able to create and sell Hive products/merchandise on behalf of the platform in exchange for HIVE tokens rather than USD creating a new form of token retention and reducing the supply of Hive tokens further.
Unfortunately, that manufacturer would have to be independently wealthy because they would essentially be paying for all the labor and supplies for the merchandise without turning around and selling the Hive they were paid in to pay for those costs. This would just be a round about way of buying Hive from the open market.
This is the issue. All the use cases that exists have to operate using fiat In one way or the other. As a result, they need to turn around and sell their Hive to pay for those bills. This is why many witnesses are constantly powering down to pay for bills. It isn’t their fault, just the truth.
This is exactly why Steemit Inc sold steem monthly. Even the devs who believed in the platform needed to be paid in fiat because their bills need to be paid in fiat.
There needs to be a major reason to hold Hive that independent people are willing to invest more than the businesses, etc are selling.
Not really, it really is cheaper to manufacture products than one would assume and it is even easier to purchase for distributor price and sell for wholesale/retail. Certainly the word manufacture invokes the mental picture of a factory and vastly expensive resources but a motivated individual on a surprising modest income could easily take advantage of such an opportunity if they dug around on where to find what for reasonable prices in reasonable quantities.
Now if the individual in question did happen to be independently wealthy they would certainly be well poised to engage in such an endeavor. But it’s certainly not required. But for this idea to have the maximum positive impact on Hive this would pretty much need to be a motivated Hiver who believes in the platform rather than just approaching some company and having them make goods that way.
The idea is for the majority of the margin made on the products to benefit Hive so I’ll use hats as an example. Hats are secured by the dedicated Hiver at $3.50 ea in bulk. The hats are sold for retail to Hive users for say $20.00 including shipping. It’s also specifically made know to the Hive platform users that margins made on these products go specifically to support Hive. The Dedicated Hiver can opt to be paid by the platform in Hive tokens which can be transferred directly to their account at market rate.
Now fiat certainly is a reality that we need to deal with as mentioned in the article we trade Hive currencies for fiat because we can’t purchase things with Hive, yet. A good merchandising campaign enacted by the platform changes this. It’s of little consequence if one or a couple merchandisers on behalf of the platform exchange the Hive they earn for another currency.
Now bringing USD into the platform. This was what the article was talking about with Dollar Cost Averaging. Let’s say I’m sitting on a ridiculous sum of Hive. I want to get the most out of selling my currency, but I don’t want to negatively impact the market price of the currency by selling such a large volume all at once. So instead of just selling it all at once everywhere I can, I perform controlled dispersions into the markets at regular intervals, let’s say every two weeks. Every two weeks I sell a predetermined and consistent sum of Hive for USD on as many exchanges as necessary directly proportional to the sum of Hive routinely being sold in question. This allows the platform to have access to as much or little USD as it needs to operate while still being able to enact the long term economic strategies on the Hive currencies.