DPOS and the theory of money.

in #engrave3 years ago

See why dpos is similar to money in the real world and the myth of the 'good' text.

Imagine that you 5,000 hive and decide to share with 5 people, in theory all of these could have the same power and would grow equally, but what happens is that some sold the "golden chicken" and started asking for it again.

After a year those who continued with their stake will have almost 1.5 thousand hive (despite the apr being less, I believe that those active at least can double the stake each year), and those who sold will still have 0 hive as they continue to sell its power. After 4 years these 1,000 hives will have turned into at least 5,000 hives.

money generating more money
pixabay

The Myth of Good Text

Unlike what many people think, good texts rarely bring any advantage to the hive, frontends do not sell ads and google does not index all posted content. So most texts disappear in the midst of so many posts, none of the frontends I know makes use of old texts (trending is a bad joke).

The currency's price is set exclusively by buyers and speculators, it's not your good text that defines the value no(could be, but the frontends need to start taking advantage). Look at the steem, bad and short texts, but it still holds value.


Originally posted on Crypto blog. Hive blog powered by ENGRAVE.