One Eye Is Laughing, The Other, Weeping
Bitcoin just crossed
16,000 17,000 18,000 USD, and I’m happy. That is the advantage of diversification, also in the crypto-currency space. You are more often happy. At least, in a part. I have Bitcoin, Ether, Steem, Hive worth thousands of dollars. So, with Steem and Hive in the rift, I’m at least pleased with my Bitcoin and Ether stake.
Chart 1: Ether/Steem and Ether/Hive Prices (Tradingview.com)
Maybe I will buy more Steem or Hive if the price gets to 3,000 per Ether – I wrote in September. (Here»»» and Here»»».) It was, in a part, a joke, but in a part, also serious. I bought some Hive later because it seemed relatively cheap (compared with itself).
Altcoins Are Underperforming
I know altcoins are generally underperforming compared with Bitcoin. Bitcoin dominance reached 66,6 percent, two-thirds today, a level last time seen in May. We are not alone, but that does not console us.
But, it’s not about my investments, I wanted to ask you something. Should I buy more Steem and Hive? Convert some Ether or Bitcoin to them now, because the price is even much better? I don’t dare. I’m not scared, I like risky investments, but I don’t see the real point of it. Other cryptocurrencies perform much better. These two blockchains seem to offer amazing possibilities but there is no clear business model. Or, am I the only one who can’t find it?
Mass Adoption? Where?
The system produces more coins every day. People are trying to receive the largest part possible of this inflation. With posting, voting, developing, witnessing playing games, etc. Later, some of them sell it for income, others, hold it. I don’t see many newcomers, greedy buyers, investors, onboarding masses. For years.
Chart 2: Bitcoin/Steem and Bitcoin/Hive Prices (Tradingview.com)
Connection With the Real World
I don’t see, which problems of the people are we solving with Steem/Hive? (Besides the same problems Steem/Hive systems produce.) Giving them the possibility of blogging? There are other platforms. Social media? There are others, too, also decentralized ones (for example, Mastodon). Earn money? Most people earn only a few cents per post.
Greetings From the Real World
Cointelegraph wrote: “The DeFi market desperately needs to connect with real-world assets”:
So, will any real-world asset work? Not exactly. The asset must meet simple criteria that will allow for solving the above issues:
- The asset must be stable in order to solve volatility and over-collateralization issues.
- The asset must generate periodical fixed income in order to bring real-world cash flows.
- The price of a collateral asset must be determined in a transparent way based on several proven and recognized sources.
I don’t say we must back Stem and Hive with gold or silver. The most important part was “real-world cash flows”. The market price can’t surge without cash.
Who Will Buy It?
So, why should I buy Steem and Hive, Hive and Steem, please, tell me? Leave a comment. But, please, forget the usual promotion slogans we’ve known for years. ("Amazing New Technology," "The Decentralized Digital Revolution of the Future," "The Mass Adoption Is Imminent.") Let's focus on the real point.
Picture: Search Engine.
What is really happening? Why should prices go up? Who will buy the dip? Who will buy these two cryptos in the long term? What are the benefits – and business model – of this technology in the areas of media, finance, gaming, and gambling, perhaps, other branches? Maybe the most important question in all economies, businesses, ecosystems, is:
Where does the money go?
No More Forks, Folks!
I sense some periodical problem in the Steem-Hive imperium. I think every major fork, reform creates a “disruption in the Force”. Last year, Steem’s “flag war fork”, this year, the birth of Hive, later, a bigger Hive fork… All seemed to decimate fans, active members. And push Steem and Hive prices lower.
(A word more about Bitcoin: I hope people just get crazy and the price explodes to 1 million in some weeks. Look at this nice and logical forecast on Tradingview from a fellow I follow.)