Hive, is it a better investment then Bitcoin or Ether?

shortsegments (76)in LeoFinance • 2 years ago (edited)

The Premise: It's a better investment

I was reading a post by @pouchon and wrote my reply to his reply this morning, and it dawned on me that we were discussing something I have always had in the back of my mind, but didn't completely believe it. I think Hive may be a better investment than Bitcoin or Ether. I pray that neither lightening nor Bitcoin Maximalists Strike me down for saying that... LOL

It began back in the Steemit days, when I discovered tokenized social media, i.e. Pay for Writing or Pay for Blogging, and as I learned more about author rewards, curation rewards, delegation, bid bots, etc it became clear that there were multiple ways to earn tokens for myself and others. You see Steemit and now Hive have two underlying core principles: abundance economy and compounded earnings.

Abundance Economy: Hive is an idea made real.

Scarcity and competition versus abundance and cooperation.

Hive is the realization of an idea that humans can create a money making economy where the rewards are NOT scarce, they are abundant. The Hive economy which is not based on a scarcity and competition where your GETTING paid depends on me NOT getting paid. But instead the Hive economy is based on abundance and cooperation, so by working together we BOTH get paid.

Now, Hive is not perfect. I must admit that humans are very smart and talented, so they can mess up even great ideas and programs! LOL
But in general this economy here works very well.
It sounds lofty and utopia to call it an abundance economy, so I just call it win-win networking.

Compounded Earnings

The second core principle that sets Hive apart from many other projects is that the return on your investment is compounding and it might even be better than Bitcoin or Ether.

How? Daily compounding...

...compound interest is one of the eight wonders of the world.

On Hive my initial investment makes money every day, and if I reinvest my earnings into my stack, I then earn daily on my initial investment and my earnings. If I keep reinvesting my earnings every day, I am making or earning on my initial capitol, my first day’s earnings, my second day’s earnings, my third day’s earnings and so on and so...

I basically am making money on my capitol and my interest, so it is compound earnings. This compounding is math what takes two pennies and doubles them daily, giving you five million pennies in 30 days. And no you won't get five million in thirty days, thats not my point, my point is you can compound your earnings and build your stack at an astounding rate.

Perspective

Savings Account
I get 2% per annum and it doubles not in 50 years from Simple Interest, but 25 years from compounded interest.
Stock Market
I get 10-12% per year in the Stock Market and my investment doubles in not 10 years from simple interest, it doubles in 7 years due to compound interest.

Bitcoin
It doubles every two years, depending on what you read, and who you believe. I suggest you read the blog of @edicted for multiple articles on Bitcoin doubling and it's longterm growth pattern. It is a good longterm investment. You just hold it, and forget you have it.

Hive
I think most can achieve 35% yearly return on Hive return on your investment. So instead of doubling in 3 years with simple interest you could double in 1.5 years.

It’s complicated because there are so many ways to earn. Plus overall return varies depending on so many factors, like how much additional Hive you buy each month, and your effort creating content, tailoring your content to the needs and wants of the community, your luck in attracting whale votes, your skill and persistence at networking by commenting on other peoples blogs to create relationships and interest in your work, and quite frankly luck.

Example:
I started out on Steemit and built my stack from a few hundred Steem to 60,000 plus Steem in a two years, posting daily and buying Steem every time I got paid.

I followed the simple script of posting daily, responding to commenters and going to the blog of all my commenters and commenting n their posts. Plus I used delegation, as a means of insuring my money worked harder than me. In simple terms I delegated some Steem to groups of people working 24 hours a day to upvote posts, so that even when I was sleeping my Steem was upvoting peoples work and earning me curation rewards. This netted me upwards of 35% return on investment per year alone. This doesn't include rewards earned from authoring or writing posts or Bid Bots.

But it didn't stop there, as my Steem stack grew my author rewards grew and my curation rewards grew too. It seems that as I grew my stack I attracted larger stake holders and my author rewards grew, and as my stack grew, my curation rewards grew. It was a different type of scaling than you usually encounter in business.

It was social media scaling for lack of a better term.

Last thoughts

I think that the abundance economy and compound earning here on Hive may be one of the great wonders in the world of cryptocurrency. Plus unlike buying something and waiting, hoping and praying the price goes up to earn money, here your Hive makes both passive and active income, and I feel like I am more in control of my destiny. And quite frankly, my investments in Bitcoin and Ether, seemed to go up and down in value, and during the horrible 2 year bear market my Bitcoin and Ether just kept going down in value. The final result was a much better return on my money here, then in any other investment. So but I just kept stacking or accumulating Steem and soon I was making 50-100 Steem per day. It was fabulous. But then I pulled it all out and bought Bitcoin, and Bitcoin raced to 65, and then fell to 30k. I was back on the Bitcoin roller coaster.
And the rest of my Steem stack, I transferred to Hive and started over; writing posts, upvoting, delegating, commenting and building up my stack.

Today

Today I read @pouchon's article, which I place a picture of below, and I had to ask myself, would I have been better off not buying that Bitcoin, and just kept building my Hive stack? Bitcoin is a wonderful longterm investment, and I definitely want to own some. But it doesn't earn me any money every day like my Steem did and now my Hive does...

I know my Bitcoin marches steadily towards 100k, but compared to my daily earnings on Hive, Leo or other Front Ends, my Bitcoin appears to be standing still, or standing, falling down, getting back up, standing, falling down, getting😃 back up... You get the picture?

Ha Ha Ha... maybe I am kidding myself, but I really think my money would have better kept here on Hive.

What do you think?

@pouchon's article:
Screen Shot 20211027 at 8.32.34 AM.png