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Yes Hive requires a lot of balance between earnings and good management. Ultimately I think it is the same in a business context. For example, if a business is only focused on earnings and not the longterm vision, the business eventually fails.

The only reason that is a bad analogy is because Hive can not fail in the same way a business would. Like even if the token because super cheap that doesn't stop the platform from working it just means people can buy more HP for less $s.

It is absolutely true that when the price drops so much, people will use this platform even less because they are not getting as much money back as the host is making in creating a post.