Hive: Compounding Machine That Epitomizes Web 3.0

in LeoFinance2 months ago

We are entering a new era.

Tokenization is going to radically alter the distribution of economic productivity. To me, this is going to eventually rival the corporate state in value. We are seeing a massive shift in the evolution of the digital realm. Of course, with technological advancements, this is expanding a great deal, blurring the line between the physical and digital.

The Laws of Information Technology are very powerful. It is something that many are going to take advantage of. This has the potential to create an entirely new economy.

What is most interesting is the fact of compounding. The digital realm expands exponentially. It is multi-layered, providing financial opportunities where they were previously not available.

In this article we will focus upon the Hive ecosystem. This epitomizes how things can compound over time.

Taking Advantage of a Compounding Machine

Compound interest is the eighth wonder of the world.

This quote is often attributed to Albert Einstein. There is debate about that as John D. Rockefeller is stated by some to be the author.

Whomever is responsible, most are aware of the power of compounding. It is a financial mechanism that exemplifies the concept of exponentiality.

When we look at a compounding chart, this is what we see:


Source

The early stages are like watching grass grow. It is very boring and it is easy to give up. We often conclude that nothing is happening, hence direct resources elsewhere.

This is a mistake.

As we dig deeper into this, the most important factor is time, something that cannot be rushed. It is often said that "time takes time".

For most, the idea of compounding, at least financially, puts us on the wrong side of the equation. Instead of benefitting, many are crushed because they are compounding debt. Credit cards are a prime example of this. They are designed in such as way that, if you only pay the minimum, you will get eaten alive. The processes is accelerated if you do keep making the base payment, they raise the limit to ensure you get further behind.

Look at the chart again and, instead of 10%, think about 22%.

Web 3.0: A New Approach

Web 3.0 has the potential to change things on many levels. Since we are in the very early stages, much of what we discuss is mostly theory.

That said, we find a few nuggets where the process is starting to appear.

Multi-faceted layers present enormous opportunities. When we look at something like Hive, we see infrastructure, content creation, and curation. Within this, there are both base and second layers. The main chain is supplemented by sidechains.

All of this incentivized which means potential returns for people.

This is also enhanced by the ownership proposition that having stake provides. It is a marked difference as compared to the present structure of the Internet. Few have any stake in what takes place other than as a user.

The starting point is naturally to get some income capital going. We can do this by concentrating on the different offerings provides. Again, this can be base or second layer. The best approach is a combination.

Over time, we turn to the idea of staking capital. Here is where the assets are put to work, seeking to generate a larger return.

Media Based Operations

If we look at the history of the Internet, it starts a massive shift in media. Granted, this took place over 30 years so it was not obvious from the start.

Text was the first format to get disrupted. Due to sites such as Wordpress, anyone could become a journalist. Blogging became part of our language. The traditional purveyors of print media, newspapers, saw massive disruption. Many went out of business.

Music was the next to see the industry change.

Due to a new distribution system, it became easy to transfer songs, often in violation of copyright laws. That said, the technological ability caused enough of a hit to the revenue streams that many record companies went under.

Over the last decade, video accelerated. YouTube is one of the most visited sites. The amount of video that is uploaded in two days eclipses all the ours of television for a year.

This is causing major headaches for the media companies.

What we are looking at is much bigger than social media. Instead, we are dealing with a reorganization of the entire entertainment world due to the advancement of technology companies.

Here is where Web 3.0 benefits.

Due to the realm it operates within, we are dealing with technological entities. There is nothing physical about what we are talking about. This is what sets the exponentialities in motion.

When media activities are tied to tokenization, new monetization models can arise. This will only accelerate the compounding.

Micro-earning

I am a firm believer that the future is one of micro-earning.

Before cryptocurrency, micro-payments were not feasible. The present financial system, run by the banks, makes this impossible. With so many intermediaries, the cost is simply too high. A micro-payment ends up being a net negative.

That is not the case with a network that has zero direct transaction fees. Suddenly, micro-payments are possible. What this means is micro-earning is also realistic.

The idea behind micro-earning is to garner small amounts, potentially hundreds of times per day. While the impact of any single transaction is minimal, the totality adds up over time. This is enhanced by the idea of compounding, such as staking.

Essentially, we are looking at the monetization of data. That is what ledger based money really is. For this reason, as more data is generated, value increases are realized.

All of this can build upon itself.

Over the last 18 months, we learned how valuable data really is. While most of us had an idea, the emergence of chatbots due to LLMs really drove the point home. We are seeing multi-million dollar deals as companies scramble for the data.

Unfortunately, under the Web 2.0 scenario, this is not of benefit (financially) to most. It is the companies that own the platforms that are benefitting.

Web 3.0, in my view, is going to be the opposite of what most people experience.

Today, the majority of the population gets its income from one source, i.e. a job. Web 3.0 is going to provide small amounts of income from many different sources. All of that can be enhanced either through staking or by adding more layers.

Over time, if people follow the concept of a compounding chart, we can see how this can accelerate. After all, that is what compounding does.

Hive is a network that is already putting this into operation.


What Is Hive

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It was only recently when I found out about compounding interest, and I instantly changed my financial strategy around it. I now look for stocks with dividends, and reinvest any interest I get. Hive is really one of the things that opened my mind to it, especially the HBD savings.

It is a powerful tool. And Hive is the epitome of it.

Just consider HBD in savings generating 20%. That adds up to a great deal over time.

Yep, I have been slowly trying to increase mine.

The idea of micro-earning and the feasibility of micro-payments thanks to cryptocurrency highlights a future where diverse income streams become the norm. It will be exciting to see how technology can democratize economic opportunities and reshape traditional financial systems.

The hardest thing people have with compounding is the time factor. Because you don't really see big results until years later. But those that stay on the path I think benefit GREATLY later on in life and crypto is no different.

The age of instant gratification.

It is often said that "time takes time". few words with bold meaning friend.
This is the coat I am aiming to put on. A lot may not understand but I see your positives views(little is much when always in a process) . Thanks for the article

!Luv the power of 20% compounding. !LOLZ

I have been successful as a penny trader for many years. I never had enough money to play the expensive stocks. In fact the fees were/are too high for small investors. With the penny stocks you can pickup 10,00+ shares and only require a penny movement to offset the trading fees. Zero trading fee on Hive is an awesome feature. Now one can play layer 2 tokens and generate some windfalls that can be used to start your next HBD compounding machine.

Task, have you considered selling all your Tesla and using the proceeds as your HBD compounding machine. Are you more confident in the future growth of Tesla or HBD?

...penny trader for many years

A lot of widom here. Penny trader, not investor. I see so many investing in penny stocks. Most of it is crap. Play the moves.

Task, have you considered selling all your Tesla and using the proceeds as your HBD compounding machine. Are you more confident in the future growth of Tesla or HBD?

No. To start, my holding in TSLA are mostly in retirement accounts so I couldnt do that anyway.

As for the prospect, I believe Tesla will outpace the 20% annual rate over time. There are always ebbs and flows but I am confident in what the company is doing.

Different asset classes to be sure. Yield is a nice steady thing which makes HBD very powerful. But the upside potential on something like Tesla or other companies getting involved in AI is huge.

Plus they do have the car and energy thing too.

Penny trader, not investor.

I play many roles. It's entertaining when you are able to convert crap to useable asset. Now one does have to have the ability to manage any stress from selling at a loss and moving on to the next trade. Some people are not able to sell at a loss and thus can be left holding an empty bag.

Amazing the amount of funding that was raised via XAI

Always wise to diversify.

I agree with you.

Most have no business trading markets. They do not have the emotional intelligence to do it. They want to tell the market they are wrong and expect it only to go up.

As they say, the first loss is the best one.

We are indeed entering a new era. It feels like the time when people before ignored the internet but now, internet is everywhere. Same thing would happen to blockchain and web3 if done right.

I'm really drawn to the idea of Hive being this compounding machine. It feels like every action I take there has a ripple effect, building something bigger than just me. It's almost like being part of a digital community garden, where everyone's efforts grow something amazing together. Thanks for this Taskmaster, you're the best man

It feels like every action I take there has a ripple effect, building something bigger than just me.

You feel that way because it is.

Consider this in the simple terms.

You post a comment and get an upvote. It cross the dust level so you get a bit of HP a week later. That HP earns 2.9% inflation adjustment along with the ability to curate it. Say you curate at 8% annually, then you are close to 11% on whatever was earned on that comment.

Rinse and repeat.

Wow this is really a great investment... I'm going to work my butt off to grow here .. this is really really amazing.. I barely noticed the real calculation of exponential growth here on Hive😳😳 an eye opener for me .. respect to you Taskmaster🫡🫡

Yep. Take 1000 HP at 11% and you see, without any rewards other than curation, you can add 110 in a year. Of course, that isnt exactly accurate since you are compounding throughout the year, getting an APY instead of an APR.

Wow. The fact that I'm compounding throughout the year will most certainly increase the percentage profit exponentially.. I'm really going to work hard here...thanks a lot Taskmaster

Get enough micro earnings, it becomes macro. Like the Biblical parable of the tiny mustard seed growing huge. !BBH

Not to be confused with Jack's beans that led to the beanstalk.

Over time, we turn to the idea of staking capital. Here is where the assets are put to work, seeking to generate a larger return.

Another worthy note that deserves attention.

That is where my entire premise of the future comes.

Income capital will dry up (be reduced). That means people will need other sources. To me, this comes from "owning" stuff and putting it to work.

With Crypto, it is evident.

Yeah staking is really something new. I understand now why the likes of Gensler doesn't like it.

He thinks is makes it security. That is the problem he has.

So I guess he doesn't like common guys to earn passive income without a cut.

I am a firm believer that the future is one of micro-earning.

I will never forget the day I picked up this idea of micro-earning and micro-investment from you. It's already more than 2 years; that was March 2022.

And how is your account doing? Has it grown since in the past 2 years?

I think so. That's the month that my account started to accelerate. If I am not mistaken my HP that time did not reach even up to 500. Now, my target is to reach 10,000 by the end of the year. Layer two projects helped me achieve this.

There are many ways to skin a cat as they say.

That is the power of Hive. There is more than one way to fill up one's wallet.

Yeah, staking is basic plus playing games, trading tokens, saving HBD, etc.

Exactly. And people need to figure out the mix that works for them.

That's why it's a good idea to seek stable investments. Compounding interest is incredible!

Getting there🤩 !PGM

The early stages are like watching grass grow. It is very boring and it is easy to give up. We often conclude that nothing is happening . . .

An accurate description.

!BBH

!PIZZA

PIZZA!

$PIZZA slices delivered:
@rzc24-nftbbg(1/5) tipped @taskmaster4450

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