Hive fiat value remains relatively the same when BTC gets volatile.
No.
So i would not blame BTC for Hive volatility at all. Sometimes players play pump and dump on Hive itself increasing it's Btc and Fiat value altogether. But that does not change the point. As of now Hive has little value apart from speculative, either it is trading actively or hodling it long term expecting appreciation in price, does not make a difference.
You need to look at HIVE/STEEM from a longer time perspective.
This is the whole price history of STEEM in dollars:
Here's the market cap in BTC:
STEEM pumps and BTC pumps have near perfect temporal correlation if you look at the whole history of STEEM. Hive is a sister chain of Steem whose prospects are better in my opinion than those of Steem.
The largest spikes in the price of STEEM were all fueled by an influx of capital into BTC, which caused a bubble in altcoins every time with some delay. Altcoins pop after BTC because some of the profits made in BTC find their way into altcoins and because some investors who were late to the party vs. Bitcoin look for another coin.
The question is, what you can use Hive for?
I fully agree that the Hive has potential for much higher utility value than it currently has and I hope its utility value will far exceed its speculative value some day.
And the answer is "you can currently use Hive for nothing".
That is not true. You need HIVE powered up to be able to interact with the chain in the first place because Hive Power and only Hive Power confers Resource Credits. Hive is a blockchain and thus offers censorship resistance to content and social relationships. Suppose you're a content creator on YouTube. If that platform does not like your content, it can easily cut you off from your subscribers. On Hive, if one front end stops showing your content, many other front ends will continue to show your content and since who follows whom is recorded on chain, no centralized entity can cut you off from your them. Hive is also a very good decentralized payment network that has three-second transactions that have no fees (you do need a little bit of Hive Power to transact, though) and human readable addresses unlike the likes of Bitcoin or Litecoin. It has HBD that is much more stable than HIVE despite not being perfect. Hive is accepted as payment by at least one online store and it can be used to tip authors on Twitter thanks to a new app.
There have been exceptions. :)
You actually need very little to do that effectively.
That has nothing to do with Hive token utility. There could be no token and censorship free blockhain. Tokens are incentive for block producers to run the nodes and keep the network alive. But that is not a utility, it's a fiscal tool and here Hive acts like a currency.
That is also not a utility, but currency feature.
You need about 100 HP to get through the day if you're an active user. That is not an insignificant amount. Only a million more active users would need 100 million token staked. With a million active users on Hive, even the largest app would still be very small in the social media or gaming space.
That's a misunderstanding. A blockchain must have a native token to reward block producers to run the nodes. There is no such thing as a decentralized blockchain without a cryptocurrency. In a DPoS system in particular a staked native token is absolutely essential. Hive Power is needed to vote in witnesses (and proposals). HP is absolutely vital for network security.
And yet is is. 20 bucks or so... The only reason to hold more Hive is to expect price appreciation and get more rewards from curation. Tell me what other utility does the token currently have?
That is not. Blockchain does not have to have any token per say to function properly as long as there are block producers that validate and secure the chain. Tokens have been introduced as a form of incentive so people make up their minds to spend their resources to support one chain or another. In case of bitcoin it's a bit different as it had to mint new Bitcoins as it's primary function is to serve as currency.
Nevertheless, there is no set rule for a blockchain to run to have a native token. If some people would be so altruistic and run nodes for free, let's say to maintain a network of censorship free site for the news to ensure freedom of speech it could be perfectly run without any token. But it seldom happens because most people are
hypocritical fucks.
It isn't given sufficient users. Do the math. A million users needing to buy 50 to 100 HP would vacuum 50 to 100 million HIVE off the market. The total supply is about 380 million at the moment. 200 million HIVE are liquid.
I just told you. But I should also add the opportunity to buy digital assets such as Splinterland cards. They all have trading pairs with HIVE on the internal markets.
A private and permissioned blockchain does not need a native token. A public and permissionless one does. You can't run a Byzantine fault tolerant consensus mechanism without incentives. You can't do that trustlessly by using another blockchain or a set of bank accounts (sic) if your rewards are paid in fiat!
Exactly. For a public and permissionless blockchain you need a Byzantine fault tolerant consensus mechanism. In PoS and DPoS, staking coins allows you to directly validate blocks (PoS) or vote for blockvalidators (DPoS).
The whole idea that decentralization and trustlessness (= the entire point of decentralization) is possible without cryptocurrency is simply false. Private blockchains are either owned by a single entity (and thus pointless) or run by a consortium of a sort and thus require trust and by extension lawyers and the police to enforce the rules (and thus pointless).