I've powered up all of my earning since I joined the platform two years ago. That was not enough. I realized that I needed to borrow money and buy HIVE so that my upvote value was worth over $0.02.
I must repay my loan. On May 1st to start selling off the HBD that I earn for my posts.
On May 15, I made my very first sell. I sold 6.738 HIVE for $2.09 USD.
The sale was small but it forced me to confront an issue that has been lurking in the back of my mind since I joined the platform. The sad thought is:
"The only way for me to cash out is for someone else to buy in."
HIVE has an interesting business model. The model attempts to fund the creation of content through the creation of a currency.
A currency, by its nature, must be based on a fixed quantity. Hive plus its reward's pool is just such a fixed quantity.
For us to cash out of this structure; we have to convince others to buy in.
This is the nature of a good with a fixed quantity.
For this scheme to work, there has to be people who lose money on their investment.
The amount of HIVE. It would take a well funded megalomaniac to reduce the HIVE any any account. Therefore, the system is dependent on the price of HIVE falling at some point.
It is an intriguing idea, but I can't see it providing enough money to fund the quality content that we desire.
But lets back away from my dark thoughts. I decided to play the HIVE game. I borrowed money and bought in. I made a page to track my withdraws. My current plan is to withdraw all of my HBD awards. I will probably execute a sale a month. Do you think I will be able to pay back the money I borrowed?
Fortunately, I borrowed the money at zero percent interest from a person willing to fund the experiment. If there was interest involved, the answer would most likely be "No."