Utility must increase, yes, but we also need to pay attention to value capture. For instance, if my goal here on HIVE is to get paid for blogging, and that is a perfectly legitimate use case that we want to support mind you, but every time I transfer my HIVE to an exchange I am extracting value out of the HIVE ecosystem without attracting a commensurate influx of value into the ecosystem. That, in my opinion, is a slippery slope to the erosion of HIVE token value. So I think we should start thinking about how to counteract that export of value to the exchanges by monetizing some of the traffic here and using those monies to buy HIVE tokens off the exchange.
In this way, we can balance the selling pressure brought by full-time bloggers with some buying pressure supported by their activity. LEO does this quite elegantly in my opinion, but it doesn't have to be the exact same mechanism.
What do you think?
I agree with you @shanghaipreneur. When HIVE is taken out and sold for another crypto, that diminishes the value.
It is up to us to create a self contained ecosystem. This is where utility enters. For example, what about HIVE being used to purchase products and services that people need. We then do not see the diminishing of the value of the token but, rather, an increase. If the Hive economy grows, the token will, instead of being sold off, will be utilized.
Against other currencies, the overall price could then rise as use cases expand in number. This would likely cause less selling on exchanges and keep the token within the ecosystem.
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