Never trust the price
This vlog is inspired by a discussion that I had with my friend @ph1102 about the price of Hive and other crypto currencies.
I can't help to see that there is a correlation between the price of hive and the activity on the blockchain. A lot of people tend to stop posting when prices are going south.
Let's have a look at USD
Prices of cryptocurrencies are often expressed in USD but I think that it's totally wrong to do that. Why? Because we can't trust USD. Between 1970 and 2020, USD lost about 70% of its buying power. In addition to that the money supply of USD has multiplied by 4 within the 20 years! What do we know about prices? They depend on the demand and the supply of a good. It's the same for a currency like the USD.
When we look at this track history and with the continuous printing of new money the same tendency will even get more pronounced in the future.
We should stop to compare crypto currencies with USD. In my eyes its the wrong peg, a peg that can't be trusted.
The most honest currency
When I look at Bitcoins, I can find out exactly how much supply there is and I know that there will never be more than 21 millions BTC in circulation. On the contrary, I believe that BTC will be lost on the way because of lost wallets or keys. For me BTC is the most honest money around. Because of this honesty it will become very demanded and everybody will hoard btc in the future. Therefore it won't be able to be considered as a currency. People always get rid of the bad money first and they keep the good money like BTC.
What about Hive?
Even if at the moment the inflation rate of hive is around 8%, we should know that in the code of the chain there is a mechanism that reduces the inflation by 0.5% per year. This means that there will be less and less new hive printed. The supply will be slowly but surely reduced. It will also mean that it will get more and more difficult to actually earn hive.
Let's stop to think about prices. When I look at the potential of hive I want to make sure that I can accumulate as much as possible. Even if prices go down, for me 1 hive is 1 hive and I don't care about how much worth it is in USD. In the long term I want Hive and not USD!
Let's connect on Hive, Lbry or on Publish0x
My free e-mail course: The 100'000 satoshis a week strategy
Sources:
https://snbchf.com/chf/chf-history/long-term-view/
https://www.in2013dollars.com/us/inflation/1970?amount=1
https://tradingeconomics.com/united-states/money-supply-m2
▶️ 3Speak
Your current Rank (52) in the battle Arena of Holybread has granted you an Upvote of 7%
https://twitter.com/oresteg/status/1319207907104378880
Estoy de acuerdo en tu comentario que el BTC es el dinero más honesto que existe. También coincido contigo, esta comunidad Hive me he sentido muy bien me gusta Hive porque se cultiva amistades y se aprende bastante todo los días.
Feliz jueves y lo comparto en mi cuenta.
https://twitter.com/oresteg/status/1319207907104378880
Muchas gracias por tu commentario y por compartir el poste. Feliz jueves a ti tambien!
A la orden
Thanks for the mention! I appreciate it!
You did a great job with this post... And coming from the former bankster, it has even more value... :)
Tbh, I knew things about USD "losing power" through the years and that's why I commented like that in our discussion before... But, I didn't know that CHF has bullied USD so hard through time... lol...
I can't add anything more to the post, as you have said it all... Just one thing... History teaches us how to act for the future, but we will not buy things for living in the past, we will buy them in the future... So, wisely pick the asset that you want to USE TOMORROW, knowing these things from the past and knowing how the monetary system in the world works...
Cheers!
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That's very true and honestly it's difficult to figure out how our future will look like. Something tells me however that crypto technology will play a bigger role in our everyday lives in the future.
Thanks a lot for your great comment!
I would go even further... I would say that it will play the MAIN role in the future... For me, 100%... for others, I can't tell...
My wife is teaching english in a big company here in Switzerland and their servers have just been hacked. Databases and servers are very weak spots in todays economy. The best answer to this is blockchain technology! Once people get that...
I enjoyed this video a lot, Achim! :)
This really shows the "value" of the USD over a long period of time & yeah, I agree...maybe we should stop comparing other currencies to it lol....it is not even the best here in the USA. Prices keep rising (even groceries, etc) and the USD value stays the same or decreases (which was no surprise to me). So it can be quite a struggle to keep up with the cost of living here....
Even though we are conditioned to compare cryptocurrency to the USD value, it is important to let go of that & see HIVE and others for their OWN value. I try to accumulate a small portfolio of crypto, etc & it's funny...in a way, I would do better with them instead of USD...
Thanks for an interesting video! :) And like @ph1102, I don't really have anything else to add because it hit it all on the head :) 💚
Thanks a lot Jenn for your nice feed-back. Of course our home currency is the one that matters most to us because we pay everything with it. However it's also nice to take a step back and look at this money in a bit a critical way. I think that you have the right mindest to try to accumulate hive. We can do so much good with hive. We can upvote other people and by doing that we give them some value. With traditional money it's either mine or yours but we can't share it. With hive it's a kind of win-win that generates a new type of relationship that is based on collaboration and not competition. For me this has a huge moral value and that's why for me Hive is more valuable than USD :-)
It is time to see as Hive as a business platform and do more in it apart from blogging. Hive will really surprise . (just ignoring HF days.)
Exactly. Hive is not only a blogging platform. Look at splinterlands. Ok it's a game but behind the game is a powerful business! When such businesses see that they can make a profit on hive, this blockchain will take a totally different signification. Thanks a lot for your comment!