Understanding the difference between capital gain and cashflow will help you appreciate how Hive can be your source of both. As a matter of fact, crypto can be your source of both capital gain and cash flow but Hive is better. So let’s try to understand what capital gain and cash flow is. Capital gain is when you buy an asset, improve it or wait for it to gain value and then sell it to make a profit. So you literally make profit only when you sell your asset, just like realtor or real estate agent or real estate investors. They buy real estate properties that are undervalued, upgrade it and make look more presentable, then sell it to make their capital gain or capital profit.
We see that with digital assets too, buy them, but can only make profits when we sell them. Then we have the cash flow system, buying an asset that makes you passive income periodically, it can be a digital asset like stock market, that pays you dividend periodically or a real estate property that makes yearly or monthly rental income for you. Not all digital assets have or rather give that opportunity to give you cash flow and capital gain, but Hive can be both. You can buy the asset as a means to make capital gain or profit by buying it low and selling it at a higher price, and you can also use it as a source of cash flow by powering up and earring curation rewards.
You can delegate your Hive power and earn Hive from accounts like @hodlcommunity or @ecency and earn liquid Hive tokens. These liquid Hive tokens can also materialize and give you higher value when the value of Hive appreciates. This way you have made capital gain and cash flow without spending your capital or selling your capital. Not a lot of people have this opportunity but we have on a platter. Those little Hive dividends we earn from curation can also be powered up in the name of auto compounding to give you more dividends created more cash flow for you.
This is just part of Hive’s utilities and Hive’s utilities is limitless and has not been fully tested yet. We have the move to earn, the play to earn and the defi options on Hive that give you more opportunities to earn on Hive. But how many people know that this opportunity is there for them? Sad to see lots of people lose a lot of money from Luna crash and FTX collapse, if only they know about Hive and invested on it, the Hive Backed Dollar savings which is a less risky investment gives about 20% interest.
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