The Path of Hive

It seems like we go through this each time there is a pullback. The markets throw a fit, causing prices to drop, and people get nervous. It is as if each tick in the market means something.

Either way, we saw a significant drop in the price of Hive. This actually filled some of my buy orders that were posted. Nevertheless, there are so many who depend upon price for validation of their choice with Hive.

For that reason, let us look at what is going to enhance the value of Hive over the long term. There are a few factors we can presume will really alter the demand side of things.

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Hive Available

The first thing we need to do is to get an idea of what is available out there.

@penguinpablo does a wonderful report each week about the Hive stored on exchanges. Here is the image from the latest one.

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As we can see, the amount of Hive stored on exchanges decreased rapidly. This is due, in part, to the amount of Hive Backed Dollars (HBD) that was created through the conversion mechanism.

Later in the same report, we get a full breakdown.

hiveexchanges.png

There are, at the time of this calculation, just over 212 million Hive that is not vested. With the present price of the coin, that is only $154 million.

SpkNetwork: Service Infrastructure Pool (SIP)

This is something that is in development and will not be available until the middle of 2022 (estimated). Therefore, we are projecting a fair bit into the future on this one.

However, it is one of the most important additions to Hive that we will see. The demand side impact will be incredible. This is something that everyone associated with Hive should be excited about. We cannot stress the importance of it enough.

Check out the SpkNetwork Light Paper for further details about what we will cover here. This will be a general overview of some of the applicable features.

The SIP can be thought of as a giant liquidity pool. It will have the different tokens associated with the SpkNetwork. They are the LARYNX, BROCA, and SPEAK tokens. All of these are going to be part of the liquidity pool (SIP).

There is a fourth token that is going to be part of it. That is Hive.

Here is the key: Hive is the external token that is the basis for the platform. Anything that is done in terms of transacting at the base layer, requires Hive. This means the starting point, the purchase of LARYNX mining tokens, begins with Hive .

At the same time, BROCA is the gas fee for the system. Guess what is required to acquire that. Therefore, to upload videos or images, one needs a bit of BROCA for those operations. If that person has none, better have some Hive.

Finally, all advertising on the network is paid for with, you guessed it, Hive. This can be a powerful sink if the network grows in usage. We know there are some popular video creators out there who have large followings. Advertisers naturally want to access this.

There is a unique twist to this concept. On SpkNetwork, the plan is to reward people who watch ads with some tokens. This means that advertisements cease to be a hindrance. Instead, they are welcomed by the community since they are another avenue to earn rewards.

As we can see, if there are hundreds of active communities on the SpkNetwork, the amount of Hive required to buy the advertising will add up.

Another key factor in all of this, the SIP is akin to a lockbox. In other words, the Hive that enters via the purchase of LARNYX and advertising is for the liquidity pool. The value is always contained there. What this does is keeps the tokens working yet, for the most part, removes a chunk of them from the free float. Active liquidity pools tend to lock assets up since they are required for the swapping that takes place.

From what we know about this project, if it has any degree of success, a lot of Hive will end up in the SIP.

Resource Credits

The main "gas" on Hive is the Resource Credit. This is a unit of measure that is associated with the amount of Hive Power an account has (actually it is MVests but we will keep it simple). A simple rule of thumb: the more HP, the greater amount of RCs one has available.

Keep in mind, these recharge throughout the day. Therefore, an individual can use up to 20 percent daily and it will replenish. This point is key because Hive uses a fee-less system. Even though one "spends" Resource Credits on transacting, they are not lost since they come back with the passage of time.

Naturally, the demand for HP increases as more activity is taking place on chain. We recently got a dose of that with the multi-month run of @splinterlands.

Again, going to the latest report from @penguinpablo, this is what we see:

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This is the new accounts signed up. To start, we must point out that most of those cost 3 Hive apiece. Since the team was not claiming enough free accounts each day, they had to purchase Hive accounts which cost 3 Hive. This means there was 30K-40K being burned some days.

More importantly, each of those accounts that wants to transact require a bit of HP. For a game like this, the amount is minimal since only Custom JSONs are being posted on-chain. This transaction requires the least amount of Resource Credits. Nevertheless, when the numbers start to get bigger, we see how even small amounts can add up.

It is important to keep in mind that this is just one game. The tendency might be to point out that we see only a few million Hive being required for these people to operate. And that would be true. If there are 300K daily players, the might only need 10 HP each, or 3 million. Not a huge amount when compared to the total Hive outstanding.

However, consider the offshoot of this, an application such as @PeakMonsters. With more people playing the game, there is a lot more activity with regards to the market for the cards. Guess what is required to handle this activity.

Are we starting to see a trend here?

What we need to concentrate on is the potential numbers. Splinterlands showed us how quickly things can grow. What happens if there are 3 games/applications with similar results as that game? We can easily see how this can move higher very quickly.

ProjectBlank

This is something that we need to toss in, especially after the discussion about Resource Credits. Certainly, it is easy to roll out eyes since we heard about this application since the beginning of the year. Perhaps this is like the Loch Ness Monster; many talk about it existing yet there is no actual proof.

Nevertheless, there is a reason to include this.

Here is a recent Tweet put out by the @leofinance team:

leofinance.png

This is an important development for more than just bringing a mobile application to Leofinance. It certainly is a crucial step considering that more than half of all Internet traffic comes from mobile.

From the perspective of this article, we see a more vital role. This is the application that will be forked to create #ProjectBlank. Therefore, getting the app on the market and being tested will allow for the rapid removal of bugs. It is a phase that will help to transition to the later much easier.

Revolving back to the Resource Credits, we can easily see how an application such as this can have a "Splinterlands-like" impact. Over the next year, it is like there will be hundreds of thousands of users for this application. After all, we know how successful Twitter is. That platform has more than 180 million monthly users. Therefore, the idea of getting a small handful over to this new application is not outlandish, especially since they will be able to simultaneously post to Twitter through the application.

What needs to be pointed out is the fact that this application will not use Custom JSONs. This means the overall impact, from the RC perspective, could be greater than Splinterlands. From my understanding, much of the activity through the application will be registered as comments. Thus, the RC cost is far greater.

Here again, we get into the numbers games. Instead of 10 HP, perhaps the average user of this application requires 25 HP. Just running some back of the napkin numbers, it is likely that some of the more active users will need 100 HP. This would pull the average much higher.

In closing, these are a couple of this projects that are going to have an impact upon the price of Hive in the future. While it is easy to fall prey of the market drop, look at what is taking place. All that is described here is in development. There are teams working on code to bring it to reality. We have to be patient a bit longer as we are not going to see it next week or month. Yet it is in the pipeline.

Cryptocurrency is a marathon, not a sprint. We are still very early in this game. A lot of development is still required. This is something to keep in mind.

Instead of getting upset about the price drops, get excited about the development potential. Spend some time looking and you will realize it is not difficult to uncover.

It is happening all over the place on Hive.


If you found this article informative, please give an upvote and rehive.

gif by @doze

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logo by @st8z

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With the kind of developmental projects hive is rolling out, i don't think any one should worry about the price.

A lot of stuff is under way, so hold on tight and enjoy the ride.


Posted via proofofbrain.io

I agree with this. I am sure that many people will achieve their goals and dreams with the help of Hive in the upcoming years.

Hopefully people get involved and take consistent action, especially within the tribes they find interesting.

Posted Using LeoFinance Beta

A lot of stuff is under way, so hold on tight and enjoy the ride.

That is my view. There is so much being developed that is going to provide a fundamental shift. We are going to see things much differently by the middle part of next year.

There just needs to be some development rolling out.

Posted Using LeoFinance Beta

This is an eye-opener for someone like me that is just joining. Thanks for the post. I am motivated to be part of this community.

Welcome to the party my friend. Glad that you found this to be eye-opening.

There is a lot here if you look for it.

Get busy and take consistent action. That is what I found to be the pathway to success on Hive.

Posted Using LeoFinance Beta

HIVE games are quite cheap to use in term of RC for now, compared to WAX games witch are nearly unplayable without a huge amount of CPU. We should keep this advantage to attract more users.

Thanks for the insight into WAX. I was not aware of that but that is not surprising since I tend not to pay much attention to what is going on elsewhere.

But this seems to be another example of where the transaction costs start to hinder the usability of the chain.

Posted Using LeoFinance Beta

For me the biggest revelation are layer 2 tokens - PIZZA, 1UP etc. Brilliant stuff!

Posted Using LeoFinance Beta

The Layer 2 tokens (applications and tribes) are certainly a big benefit. It allows communities to get together and create their own economy.

Posted Using LeoFinance Beta

When the price of HIVE moves up quickly, it’s with high volume. When it move down quickly, it’s with low volume.

Meh. Price and value are two very different things.

Meh. Price and value are two very different things.

That is true. Wasn't it Buffett who said "Price is what you pay, value is what you get"?

The markets do their own thing. We just keep doing ours and people will notice at some point.

Posted Using LeoFinance Beta

Thanks for the look at SIP - I am excited for how much that will evolve the HIVE ecosystem, as well as what it will do for the price of HIVE!

Yes it is exciting. The hardest part is waiting until the middle of next year for it to be released. Alas, new technology takes time.

Posted Using LeoFinance Beta

From your post, one can understand that HIVE is such a rich platform to be on.

As we can see, the amount of Hive stored on exchanges decreased rapidly. This is due, in part, to the amount of Hive Backed Dollars (HBD) that was created through the conversion mechanism.

And also to selling Hive for fiat money. Many people sold a lot of Hive after it went above $1 USD. Then the price quickly fell down back.

I do not blame them. Actually quite the opposite. Everyone have their own goals and dreams. Me too. I hope that everyone will achieve their goals and dreams.

Hive is literally making the lives of the people better.

Market action is always its own thing and what you described is commonplace. In fact, I dont usually partake but the pump was so obvious I couldnt resist.

I sold my Hive for HBD at $1.10 and just finished buying all the Hive back at .75-.80.

Markets will move but the big time stuff will be the HODLing for much higher numbers.

Posted Using LeoFinance Beta

I think in the case of Splinterlands, they will delegate out HP to their users so they don't have to worry about the RC issue. At least they won't have to worry unless they start blogging on the chain. Either way, the amount of accounts being created by Splinterlands is quite large so a lot of HIVE is being used up

Posted Using LeoFinance Beta

That is true and if it keeps growing, more HP will be required.

It is the same no matter what the application. Therefore, just imagine 2 million new users spread over 4 or 5 applications.

Posted Using LeoFinance Beta

With numerous projects at hand, I see hive doing great in years to come

All that is well and good, but at this point people here should be looking at price drops as opportunity to fill their bags fuller. All of us who are paying attention know Hive is still in its infancy, and realize that it's just a matter of time before the next thing booms, and the next thing isn't the last thing.

The devs working here are brilliant, dedicated, and personally invested, both financially, and morally (for lack of a better word). They believe in this as a means to improve how the world works for everyone.

As long as we keep funding development and things are being rolled out there's no stopping us. Everyone go vote for a proposal if you haven't lately.

https://peakd.com/me/proposals

There is a unique twist to this concept. On SpkNetwork, the plan is to reward people who watch ads with some tokens.

Now that's dope!

Imagine if it created a niche of ads reactors or commentaries. Now that would be trippy and would go so well with the vision Dan has for SPK.

I imagine the idea of targeting could be applied. It is a goal, we will see if they can develop the technology.

The goal of Spk is to offer a ton of ways to reward people.

Posted Using LeoFinance Beta

Awesome post, your right people are fixing onto the price, because the truth is that is their agenda. Instead of realizing that developing now would see a much bigger return in the future.

People need to realize the difference between building and trading, they will save themselves a lot of stress if they do LOL

People seem to like to srtess out. LOL

Posted Using LeoFinance Beta

Thank you for this wonderful article. For the people that are around here for more than 3 years now, it isn‘t easy still sticking to the term that „we are early in the game“. But that is probably still very true and it is even more important to remember how far this place came during this long time. The most interesting part for me, is that this is not the work of one mastermind or from a small group of people, but a community effort and a real proofs of decentralized cooperation par excellence. Not fast, not efficient but very creative and pluripotent, extremely durable in its redundancy and unbeatable by completely lacking a central structure to attack. In a way like Life in itself.

To further your point, the chain was only in the hands of the community since March of 2020. Before that, it was not a community run chain.

So yeah, we are still very early in the game.

Posted Using LeoFinance Beta

Since I have joined hive, I saw the project about one-up and spk network. Now I hold almost two hundred one-up tokens which are great for a beginner like me I guess. So I must say, Hive is the future for me.

I expected that with the end of the year and Christmas approaching, people need to withdraw some profitable money.
But for hive it isn't doing so bad


Posted via proofofbrain.io

I am not sure there is too much tax trading in cryptocurrency.

As for Holiday gifts, the best gift for one's family is to hold onto one's Hive (and Bitcoin).

Posted Using LeoFinance Beta

please consider updating your witness votes

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The whole thing shows that Hive is required no matter what app you are using and they all add up very quickly when the numbers grow. Hive is going to rock at some point and can see it flying not from trading and speculation, but from actual use cases.

Posted Using LeoFinance Beta

I always love when you reflect what I am thinking. I think I made some reference to market swings this morning.

Fantastic article as always.

!BBH

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I like this post. Thank you.

Picked up some more Hive at $0.72 and $0.71 Is there a problem here? HPUD will be upon us and the Great Pumpkin will reward the Hive faithful.

Posted Using LeoFinance Beta

There is serious sell in Hive today because of the USD news.i Saw alot of people selling their Hive. They think,it will will not bull again.

Posted Using LeoFinance Beta

Cryptocurrency is a marathon, not a sprint. We are still very early in this game. A lot of development is still required. This is something to keep in mind.

This!

Posted Using LeoFinance Beta

Because this is such an awesome post, here is a BBH Tip for you. . Keep up the fantastic work

I am looking forward to be able to do live stream on hive. Previously I am using FB as a platform to do my livestream sharing my work, social meet up and for some games. But until some times I realize that my reached to the community on FB decline so fast, I know that I may got shadow ban from FB and they keep on asking me to "boost" up engagement by buying the Adds. That is the time when I decided to slowly change from FB to Hive.

There is a unique twist to this concept. On SpkNetwork, the plan is to reward people who watch ads with some tokens. This means that advertisements cease to be a hindrance. Instead, they are welcomed by the community since they are another avenue to earn rewards.

And this would be a game changer. Not only the advertiser gets the benefits, people who watch the adds will get some reward too. I can imagine a lot of advertiser will come into the platform and to be honest I will not skip an adds that reward me. :)

I really am looking forward to the upcoming update on Hive!

There is so much great stuff going on in and around Hive. I can't believe it isn't getting more buzz when projects such as Shib can get so much buzz. Hive's time will come! You can't have stuff this good and not get someone to notice at some point.

Posted Using LeoFinance Beta

If you're thinking of leaving the Hive Amy time we Experience a price fall please do but note that when the prices eventually shoot to the roof , you'll pay a lot to get a chance to be an Hive holder,hehe.

This is an insightful article. I had no idea they were projects like this on the way that'll really change the Hive.

If Leofinance can actually achieve it's aim of becoming an app, it'll surely draw a lot of people from different parts and it'll be a breakthrough for more communities to develope.

Like you said..crypto is a marathon, only the patient one benefits and wins the race.

Thank you for the eye opener

Thanks for sharing your insights! Hiveans need this kind of perspective especially in a time of fear and uncertainty when crypto prices are dropping. Upvoted and reblogged!



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I am excited for the future of Hive with more projects on the way. Pullbacks will always happen with anything being traded.

Jestem PROSIAKIEM

anyone upset at hive being at 70 cents or whatever was probably not around when it was 13 cents a year ago!

when it goes down in price, its easier to accumulate so dont panic and just plan for the future!

Posted Using LeoFinance Beta

I love that first chart, showing how the amount of Hive on exchanges plunged ❤️

I don't make videos, but I am definitely excited by the progress made by the platform in this area 🙌