Times like these can be tough in the crypto world. Bitcoin went from $12,000 to $10,000 in a matter of a couple days. This, naturally, led the price of everything else to go down. HIVE was no exception.
When this will end is anyone's guess. In fact, there are articles all over the internet telling us when things will end. They are all over the board so be very careful.
It is at these moments that it is best to step back and look at things from a wider perspective. We tend to fall victim to the habit of looking at things as they are now and believing that is how they will always be.
For those on Hive, things gets very depressing when the token price drops. Many look at Hive through a prism since this is where a great deal of our time is spent. Seeing the activity start to dwindle, which is always happens with price drops, can lead us to think the ship is sinking.
Nothing could be further from the truth. Instead of taking that outlook, we can step back and see how things are changing. If you prefer, we could also use the world "evolving".
A number of years ago, this ship was run by Dan Larimer and Ned Scott. They were the ones who put it together and started the ninja-mining. As we know, this led to a host of problems that later caused the formation of Hive. Through their stake, they were very powerful both individually and with Steemit Inc.
Today, both moved on. Neither are associated with this blockchain nor what is taking place. Instead, there is a new group who is central to what is happening. Most of them have a development background since that is the phase we are in. Some take exception to the direction of things which shows, over time, things will change again.
The beauty of Delegated Proof Of Stake is that opinions mean little. There are no politics, at least in the traditional sense. Stake is the only thing that matters.
Here is where the community has the ultimate vote. When enough stake is amassed together, change happens. It is really that simple. It could mean a few new witnesses are put into the consensus pool or suddenly some of the proposals funded change. The essence of governance is placed right here.
At the moment, the wealth center is in HIVE. Those with large stakes in that token, have the resources. Outside of that, on the blockchain, we see little accessible wealth on the second layer.
Yet, this is where the changing face of Hive appears. We can see how blogging, which was all that was available a few years ago, is a declining percentage of what takes place. Of late, gaming and NFTs are gaining in popularity. Splinterlands is still the most popular blockchain game there is. At the same time, games like Cryptobrewmaster, eXode, and Rabona are getting people excited. The success of NFT Showroom also shows us how people are experimenting with NFTs, to great benefit it seems.
In the last week or so, Leofinance has garnered a great deal of attention. The project team is getting involved with Ethereum DeFi by putting together wLEO. It looks like there are many highly dedicated to the success of this project. The fact that there is a nice incentive placed by Leofinance certainly helps.
So far, Hive has yet to see a breakthrough which creates another "wealth center". While there might be a splattering of individuals floating around, no project has really attained a degree of success where there was a lot of money spread out to those involved. Yet, it only takes one to start the spigot flowing.
A successful project along with a bull run in the token could make a number of "instant" millionaires. Even for those without the enormous stake, many could net tens of thousands of dollars. Taking even a thousand, at the price today, means immediate Dolphin on the Hive blockchain.
Does this mean we will see immediate change? No. Just like the entire process, it is all evolutionary. Development takes time. Projects have to build enough to attract interest. They also have to be attracting the right people who understand what is taking place. That is not an overnight process.
However, when we look at the idea of an account with 2,500 HP jumping to 7,500 or 10,000, that changes a great deal. Not only does the voting count for more regarding governance issues, but everyday voting power is tripled or quadrupled. This has impact on those accounts that are being upvoted.
Alone, none of this makes much of a difference. However, over time, collectively, it starts to add up. The advantage to smaller accounts is they can double or triple their holdings much easier than larger ones especially with the price of HIVE right now. Activity plus a bit of spot buying makes a big difference in the long run.
Hive's biggest problem right now is that it has a centralized wealth center. For the most part, there is little outside of that. Over the next year, we can see this change as some of the other projects take root and grow. Putting more money in the hands of those on Hive means that a certain percentage will be end up as HP. This definitely affects those who are active on a daily basis.
It is often difficult to see in the moment but regular action does have long-term effects. Those who are active, whether it is at the base or second layer, will find their holdings grow. Eventually, one of the projects will breakthrough and provide a great deal of resources to many individuals. When there is a second wealth center generated, then it is onto producing a third.
This was the value behind SMTs. It would have allowed for many other wealth centers to be generated. Today, we do not have them so we are having to go about it a bit differently. That said, there are things being developed that can start the process.
Once it is opened, there is no going back. That is where the growth will come from.
And it will change a great many things.
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Posted Using LeoFinance