Thank the Fork for DCA!

in #steemleo6 months ago



I have been actively searching these days on ways to deploy my capital across the broad landscape of investment assets available as I continue to believe that the world health crisis has made some markets not only irrational but have made material valuation errors. However, this has never been an easy task for the cryptocurrency asset class as the main valuation driver continues to truly be supply and demand economics based on sentiment of investors. However, through fundamental investing techniques, like Dollar Cost Averaging, decision making is made easier; as I have learned with my Steem-related investment.

This has been counter-intuitive for me as I thought that the drama that has occurred around the ecosystem was more of the destructive nature in the short term. While I still think that it is clearly a risk given how liquidity is king in financial markets, I have also come to think something that led me down the rabbit hole with Steem (and now HIVE) since the beginning; there is more than enough room for more than one social Blockchain to survive and potential thrive.

To be clear, this is not me choosing a side, but instead, demonstrate how the events transpired have actually created value for the community which at the end of the day is the main valuation provider in my opinion. Code is forever as long as it is supported so there will probably be paths for both camps in the future which I am inclined to continue to support although most likely in different ways. The social aspect is clearly taking hold on HIVE while the most active Dapp, Splinterlands continues to forge forward on STEEM.

DCA April 20.png

We have seen a pump in prices over the last week which has led me to go back to my records once again. To my surprise, my Dollar Cost Averaging Strategy has paid off on paper as my average cost has remained around $0.54 after my last purchase last year. However, thanks to the Fork and ensuing price changes, the combined value of the assets (without even considering my Splinterlands card Collection) now exceeds the average.

While liquidity continues to build around the multiple markets being made, it is likely that the value is not truly realizable. However, it demonstrates that it is generally moving in the right direction. Volatility will likely continue to persist but the consolidation and moves among the chains have left me motivated once again in this experiment. While I have continued to be challenged on how to allocate my resource of time to this all, it surely remains at something I consider and think about constantly as an opportunity for the future; particularly as I want to focus on creating streams of income for the long term.

While the future remains uncertain, the evolution of the ecosystem makes me consider once again the viability of adding capital to my positions. I know some have done very well by being more active and strategic about this but I am not as smart to be nimble and time it at all. However, long term value creation is still possible and could accrue to the community if done appropriately. Never a dull moment when it comes to Blockchains and Cryptocurrencies!

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It is a game of accumulation and patience to be around this space.

It is amazing how cash paid for tokens is only one piece of the puzzle. There are a lot of ways to enhance our stake.

That is one of the best features of Steem and Hive. People have the ability to add to their stake especially when you consider the SE/HE tokens.

A lot going on and we have SMTs (or is it HMTs) coming up in the future. This will only add to the potential.

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The lack of liquidity makes me a little scared about the future of HIVE... and the fact that everyone is powering down and selling STEEM and the price isn't moving down also makes me scared, how the hell is the price sustaining itself? JS must be buying lots...

I think we need a couple more months to see if the fork actually created value or not...

The social aspect is clearly taking hold on HIVE while the most active Dapp, Splinterlands continues to forge forward on STEEM.

I sold most of my Splinterlands deck, I thought about buying it back, but because of the fact that they staid on STEEM I don't... I wonder if more people are doing the same or not.

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