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RE: What gives HIVE crypto value?

in LeoFinance3 years ago

Yes i have a few comments. Hive does have some promising potential in certain areas.. however i think it's important to not confuse the value of technology with the value of the platfrom and what's actually happening. For example what's more important what we build? or who uses it?

Now this is a type of connundrum. I can put several thousand hours into building a platform from scratch. The work has been done. However lets say nobody ever uses the platform? What is the actual value of the work? The actual value of the work has to be corelational to the need it addresses.

If i look at a platform like facebook.What gives it value? Would you say the work and technology that went into building it? Maybe so but if that were the case then any replication of the technology would be as valuable. So one could then move on from that to the idea of "network effect" gives the platform value.

So network effect has alot to do with what gives platforms value. We've seen this happen in the automotive industry as well where highly technologically advanced vehicles dropped tremendously in price because although they had advanced systems they didn't have the market value them to it's need

Doge coin gained alot of value but doge coin as a blockchain has never really been that impressive and its nature of meme coin. Looking back at the facebook example as facebook value grew closer to $1 trillion, the user base grew closer to 2.5 billion users. So we see the corelational there.

I'm not certain if hive has reached 5 million users, 2 million or 1 million. however data from the market would suggest hive value wise has fallen in relation to other cryptos against growth and value metrics which we can data wise see. It went from a top 100 coin to nearly 200 ranking.

So in the metric of comparsion to coins in it's class that would indicate significant decline. That said the free transactions are the strongest point. however, some in the crypto communities may still frown on the governance model. The right application could remedy that situation. Projects like bitcoin myk second layer tokens on hive that use the proof of participation model can perhaps balance that and their stable coin bbd coins.. may also fix many of the significant issues with hive.

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Thanks for taking the time to share your thoughts on Hive, it's much appreciated.

I tried to discuss that the value of the token is actually derived from the value the platform offers users.

By building value on the platform, this creates demand for the token and therefore increases the price of HIVE.

Like you said though, success/real value ultimately comes down to who uses a platform.

In that regard, Hive has a long way to go.

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