If you followed my past posts you probably now, that I have a bit of a different view on the economics and price development of our blockchain (and crypto in general).
While no one knows where hive will head next, fall back below USD 0.30, increase to USD 5.00 or just stay where it is, generally speaking I believe its always a good idea to take some of your chips from the table when your crypto is spiking.
While you might accept, that from a personal point of view it could be useful to cash out a bit and reduce your personal risk exposure, you might challenge that for the hive blockchain, hive community and further price development there is only one good thing: HODL!
I am arguing however, that it should be also positiv for the whole hive ecosystem to cash out a bit.
At the end not even 90 days ago the hive price was @ 11 cent, and the marketcap tiny. While speculators and traders love this volatility and it certainly paves the way for headlines in chats and the press, normal investors or users are deterred and to a much higher degree any institution or company that has plans to base any activity on hive.
In finance risk is often regarded to equal volatility... a lot of risk measures take different volatility measures or standard deviations from referenced indices as basis.
And while I completely disagree with that in economic terms ( if you buy now and sell in 5 years with huge profit why should it be of any concern if your crypto or stock tanked in between?) you got to accept that all those financial instruments give you daily price feeds on which a human brain reacts emotionally and not as a rational "ice man" homo economicus.
So the optimal idea would be to shave the peaks of volatility, both on the up and the down side to make hive subjectively less risky, more stable and therefor more attractive.
If actually big and small hive holders would embrace this principle and sell a small portion of their hive into the peaks while keeping the powder (the proceeds from the sale) dry for the next correction.. e.g. put in buy orders @ 25 cents at same fiat volume = 4 times the amount of sold hive... hive would be brutale stable.
I believe that this could be very powerful and make a difference to such an extend, that it would be worthwhile if both whales and the small fish would consider such a common effort.
Even if the single trades would loose money (or performance) because maybe you sell @ 90 cents and hive never goes back to the low teens but crosses 1 USD for ever, as you kept the major share of your hive investment the implied improvement would be beneficial to every hivean.
What do you think?
Does this make sense?
DISCLAIMER
! NOT AN INVESTMENT ADVICE ! JUST MY PERSONAL OPINION ! DO YOUR OWN RESEARCH ! ASK YOUR ADVISORS ! BE AWARE OF RISKS AND YOUR RISKTOLERANCE ! INVEST ONLY WHAT YOU CAN AFFORD TO LOOSE !
The author does own several above mentioned crypto currencies / financial instruments.
Posted Using LeoFinance Beta
Had close to half my Hive liquid but ended up powering it all up again. If I still had the liquid Hive I would of probably sold at 88c when I had a chance and bought back in during a dip. I always am in full power down mode but always power back up. I think it is a wise move to get more Hive in the long run.
I would guess you are right.. therefor my idea is only to a small portion (maybe 7,5% to 15%) of someone's total hive holdings (equaling 1 or 2 weeks for powerdown)
Posted Using LeoFinance Beta
My holdings are pretty small so if I could of sold half at 88c and got more after a dip even now would of gave me a boost to add to my bag. My bag is probably smaller than most peoples one week power down.
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Wow, you really had some foresight looking back at how things have played out.