The HIVE Liquidity Squeeze

in hodl •  last month 

Hey Jessbees

It's no secret that blockchain-based applications or dApps as we call them all struggle with adoption and that's due to a range of factors. The complexity of the tools, the weak marketing, the limiting of reach on traditional social media, the focus on money over user experience and the general information overload that comes with using these services.

The current system is geared towards self-starters and tinkerers who are willing to figure things out on their own; it will be this way for some time. I think people in crypto highly underestimate the herd mentality and how hard it is to reach the tipping point.

I've looked at tonnes of chains and dapps and messed around with them, and while HIVE has its hang-ups, its at least overcome issues other projects still have to face and figure out.

Most people judge crypto by its price and at $0.20 no one is raving about HIVE yet, but I have a feeling there are a few reasons that will trigger price movements if only with time.

liquidhive.png

User base growth

To use HIVE or any of its dapps you need to have HIVE staked in your wallet to access the network resource credits you need. As the user base grows, more of the inflation gets locked away in HIVE Power.

Additionally, a lot of people also lose their accounts, locking away HIVE Power forever. As more HP is locked away more of it tends to move towards curation and staking, and the network effect grows, locking away more HIVE power.

Making it harder to buy as less gets dumped on the market.

Native ads

If we look at what peakd.com is doing with its ad platform allowing you to promote on tags and communities by burning a portion of your HIVE in the process, native ads are going to see a reasonable amount of HIVE removed from circulation.

As new users come in and the competition for attention increases, as businesses come in wanting to tap into the HIVE community, they adequately reward the entire ecosystem by burning HIVE and removing it from circulation.

Third-party ads

dApps like 3speak and leofinance all run their ads from 3rd party networks like coinzilla and AdSense. They effectively monetise their views and can use this to buy HIVE. In the case of Leo, they buy HIVE with their income, then use that to buy LEO and remove it from circulation.

This drives up the price of LEO and puts more pressure on HIVE as you need more HIVE to buy more LEO to burn. As more tribes do the same, a rising tide raises the value of the entire ecosystem.

Tipping

Tipping is a great way to change the distribution of the coin without having to alter the way inflation is distributed. The more users tip one another, the more currency is also removed from circulation. It may be a tiny bit, but as the user base increases and the use case becomes more regular, these fractions of HIVE add up to reducing supply considerably over time.

dApp & tribe tax

In certain cases, dapps may take a portion of your earnings for using their service or in the case of tribes for not using their front end to post. Either way, they remove coins from authors which they can use to stake and reward users later or burn and remove them to reward the ecosystem.

Major slippage

Many of these tools and services were not around in 2017, and yes there are forks people can use like STEEM and Blurt but I have no doubt as the next bull run nears, the pressure on the liquid HIVE pool will be far more than any of the other forks.

It will be interesting to see how much slippage there will be on exchanges as the dumb money piles in not caring how much they pay and only trying to get a stake.

Have your say

What do you good people of HIVE think?

So have at it my Jessies! If you don't have something to comment, comment "I am a Jessie."

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When visiting posts nowadays, I usually give tip rather than upvote. If more people are tipping which 1% is sent to null, I guess it helps with Hive price a bit.

!tip

I’ve noticed yes and it’s appreciated I want to see how popular tipping becomes as the user vase and price moves up it’s going to be an interesting factor in all of this!

I’d also like to see paywall content in future for say communities! Let’s say an independent news creator could pay wall their posts and you pay 5 or 10 cents to read i think that’s a pretty cool revenue model

The thing with tipping is that it's giving away Hive from our wallets with no curation rewards. Voting on the other hand, not only costs me nothing, it also pays me half of it back. So essentially I have a huge incentive to vote and very little to tip. That's why I only tip when there is a danger of the post being downvoted to zero by tossers with big wallets.

And realistically, I'm not going to pay to see content because I have an underlying view that information wants to be free. Or at least I certainly expect it to be free!

And that’s your prerogative but that’s what we need to cater for a different style of content consumption and reward system! The more we have the more options used have have to earn and incentives to contribute!

For example my own site I create a piece of content it ranks well it pays me for years compared to a 7 day window! Same with YouTube and medium and instead of making it the oknly option making it optional to earn that way or the current inflation way makes content even more valuable over time!

A key to unlocking the chains potential is monetizing the back catalogue of content too not just the latest goodies

That would be cool - a lot of the posts on Steemit from three years were way better than what is being posted here now. I keep wanting to go back and repost the good stuff.

I feel the same, especially those first posts on how to use things or find things on steem/hive, super helpful which I either find in search or via search engines

  ·  last month (edited)

I'm glad you understand all this!

But I don't think Blurt will be putting any pressure on anything - that lemon is hilarious!

https://peakd.com/hive-167922/@trumpman/blurt-is-out#

Hope Hive goes up a bit - now that would be fun

I wouldn't mind if these forks were made with actual competition in mind and having a different model with drastic changes but they are primarily driven by the fact that certain people want to hold control over the chain. I think it would personally have been better to just focus on splitting off one chain all different ways but hey to each their own

I don't see the value prop there, I'll just dump those hot cakes for some BTC or something

Do you think they will ever be worth anything? (I won't be getting any myself because I'd long since ditched all my Steem so I won't have any blurt to sell)

With the name blurt, and the total balls up of a set up, is this for real?

It may be worth a few pennies but not much, the user base didn’t have the publicity HIVE got and the chain doesn’t offer anything new! The removal of SBD also doesn’t seem like a good move to me might as well have been a tribe on chain Would have had a better shot but okay

I think they’ll get a binance listing because of the whole drama and theirs coins on Binance with less utility still trading but I hold not much hope for it!

I’m happy to be proven wrong but I don’t think spending resources on a new chain helps unless there was truly a unique selling point!

You can see right from the outset, the chain is a pile of garbage doomed to fizzle. The name "blurt" is just a red flag in itself... (unless they knew all the pervy meanings and were doing it for a joke - lol - says "frot"...)

It will be fun to be along in the ride, no matter how high Hive will rise. I am sure that 5 years from now.... We will all smile

That's the attitude I think more of us should have stop worrying about all the technical stuff and just have fun with it, I think us technies remove the magic from tools but we mean well, we just want improvements

Yup, find the fun of connecting, engaging, making friends. The rest will be a bonus. The feeling you get from being on the right platform with the right people is bigger than gold, fiat or crypto. That's why I find Hive just plain awesome

!ENGAGE 10

I feel you, its also one of my biggest reasons, that and getting a place to put all my rants that no one would listen to here at home or on my traditional social media echo chambers

Hmmm, that's weird, looks like you have enough engage to tip, let me taste mine

!ENGAGE 20

Ooo but let me spoil you with some engage too hihihi

!ENGAGE 30

Thank you for your engagement on this post, you have recieved ENGAGE tokens.

Thank you for your engagement on this post, you have recieved ENGAGE tokens.

I will be saying just 'I am jessie for today's post'😃. I don't have much to say

Lol sometimes my posts can leave those who are deep thinkers rather speechless

Hahaha....so you know. True!

Tipping is a great concept especially when the post payout goes past the 7 days period and upvotes aren't contributing to the post payout anymore.

Hoping with dapplr that the ease of use will drastically increase compared to the options we have now. If as much can be taken care of under the hood as possible then the dapps will be a great place to point new people to as most use mobile devices.

Oh indeed, I've found many posts that are old that I'd want to tip and then I check when last the user was active and I'm like meh no point lol! Gosh I would love to be able to have an app that we can use without having to grit through it, imagine our engagement if we actually had an app we enjoyed using

Yeah such a shame quite a few left but understandable at the time. However, us who stuck it out will be in a better position when they come back! Going to have to check dapplr's page and see what's going on with their app - have a feeling that will be enjoyable to use like Partiko was.

All good things you mention that should overtime help to increase the value of Hive.

I do hope so, and I think we who are here are getting HIVE at such low prices right now we will be kicking ourselves if we didn't take the opportunity

🎁 Hi @chekohler! You have received 0.1 HIVE tip from @dolphin-assemble!

Sending tips with @tipU - how to guide.