Hello,
I came across this discussion on Hive: https://peakd.com/hive-180505/@tarazkp/value-in-the-spend and wanted to share some thoughts on the topic of economics. I have a formal education in economics, so I’ve got some knowledge both on the theory of money and the theory of value in their various historical forms.
In my view, each use case for blockchain should be self-sustaining. That is, it should generate value and reward that value. So let’s talk about blogging. Blogging could be a self-sustaining system if there are people willing to buy Hive tokens to reward the authors they appreciate. If the blogging audience grows, it creates demand for the currency through a large number of small players who don’t want to remain at zero. For example, it’s quite inconvenient for me to buy Hive in my country, but when I enrolled my child in kindergarten and returned to reading posts from our community and sharing my own progress, my first thought was: “I should buy at least $50 or $100 worth,” so that my upvotes would carry some value.
So if the audience grows and Hive as a blogging platform attracts new users, readers, or bloggers, that alone can sustain daily Hive issuance through demand.
It’s also worth noting that the core value of bloggers lies in the attention economy. We become interesting enough to be read, we create our own bubbles, and we can monetize those audiences. Most often, bloggers sell advertising. What puzzles me most is why, after so many years, advertising hasn’t come to crypto blogging platforms — because that’s real demand. And it could serve several purposes:
- Support the currency — by selling ads for Hive and/or burning a portion of the Hive earned from advertising.
- Support platforms that add value to Hive (get more audience in search systems).
- Reward authors who bring more audience to the platform (of course, verifying that it’s not bot traffic).
- Increase content appeal by adding the value of reading to the value of friends and community on Hive.
I don’t think an ad strip on the side of the page would bother us much if we knew that our glance at it adds value to Hive in the stack.
The internet economy works in tandem with the real economy. If there’s something here we’re willing to spend fiat money on, then the money generated here will also have demand in the real economy.
Thanks for your attention 🙂
The ad revenue is definitely a solid idea when it comes to adding value to the currency. I think it comes down to a couple things.
Splintered attention/platforms - there are so many platforms for blogging (blockchain and otherwise) that investing in one over the other would be risky in big quantities.
Non-critical Mass - strange to say it after 8 years on the chain but I don’t believe we are at critical mass yet. Perhaps we are or are close but I think a few big whales pulling the plug or misusing their stake could take the house of cards down a few levels.
Smart companies advertise where their (desired) audience is. Would it make sense to lock an investment in to reach a global audience that is probably just a few dozen people from each country?
Slow and steady hopefully wins the race as we build the community, force the hand of the mainstream exchanges to carry the currency (by demand), and coordinate a decentralized movement to sell this advertisement and use profits to inflate the value of the tokens.
I believe businesses should get involved in blogging and being social here individually. Build another income stream, turn the brand social, reward prospects for engaging and build business into our community a little more.
Coming from the sales and marketing side, good to have economists here pulling the rope too!
Thank you for your response. Yes, we need targeted advertising like Google’s, or maybe there are some alternatives. It’s precisely because of this issue—we’re all so different here, and the only thing we could realistically advertise is various crypto or some kind of scam :)
I even just thought it would be great to have a possibility to integrate googleads directly into your own blog. And each cryptoenthusiast can decide for himself which part to burn. Otherwise, the economy becomes unstable. If the balance shifts in favor of those who sell a lot, then blogs might still exist — because they’re inexpensive and there’s a community here — but there won’t be any economy.
I always tell people you can actually get paid to advertise on hive. Onboarding people in the US has been a nightmare. The rewards are minimal and our bills are extremely high here. Your best bet is to target countries affected by hyper inflation if you want to onboard real people that will benefit from being here and appreciate the space enough to come back everyday. That or appeal to the ideals of those in developed countries because the payout isnt there for anything other than hobbyists or actual capitalists with capital to invest.
I agree that we have an atmosphere for hobbyists here. The place to feel that everything matters and everything in our life is worth living through.
I have instagram just for my art and sketches, I have FB were I post about politics or country, and I have this space for life, dreams, everyday thoughts and doubts :) It's really like this. But we never know if this can be changed and whether we want it to be changed.
I agree wih you but I think that ads system is not entirey viable due the small amount of daily active users and traffic.
!BBH
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