Something that I have always valued as incredibly important, is independence. Yes, in terms of the business world, partnerships can make the world of difference. Unfortunately, they can also taint and restrict future growth and profitability. We are currently witnessing this very dynamic, as Solana battles to overcome the negative effects of its strong ties to FTX. It’s true, in the altcoin world, partnerships can be everything. However, it’s a two-edged sword that cuts both ways.
When you look at Hive, you immediately notice the Independence. No outside partnerships, no VCs, and no “personality promotion”. It all comes down to the chain, what’s being built on it, and the actual tokenomics that keep Hive ticking along, while the broader market experiences significant challenges. The only outside factor that has any bearing is price. This is, unfortunately, unavoidable. Any market downturn will inevitably negatively affect the price of HIVE.
No project is immune. However, a project like Hive has a much stronger level of resilience against the potential pitfalls that plague the entire Crypto space. It is fair to say that many of these pitfalls also affect the broader market. However, due to its infancy and reputation, the Crypto market is significantly more sensitive, and as a result, often suffers devastating blows. This is most likely to always be the case, at least until Crypto secures its seat at the “financial table”.
The Only Downside Is An Opportunity
If you firmly believe that Crypto, and especially Hive, are here to stay, then you are currently faced with an opportunity. Due to the fact that holding HIVE increases your impact and profitability on-chain, accumulation and building your account is paramount. This becomes significantly easier when prices are low. Consider for a moment that the only real downside here is actually beneficial, long-term. Of course, the future is not guaranteed, but this is probably as “safe” as it gets.
Seeking out projects with the lowest level of risk, and not being prone to outside influence, makes a ton of sense. This is especially true in a bear market, although I believe that we are close to experiencing the worst of this Crypto winter. This is in relation to price, not time frame. We are in the final leg down, in my opinion. However, once the worst (price) is realized, it may be a slow grind. Obviously, not investment advice, merely my own analysis.
Once again, an extended season of Bitcoin remaining range bound is not necessarily such a bad thing. However, this is only really pertinent to the committed community. Speculators will have to stand in line, unfortunately. It’s funny how dedication and ongoing effort have a way of securing profitability over time. A dedicated effort is also something that “qualifies” over long periods of time. A dedicated effort over a period of a few months is in many cases just as good as no effort at all. You need to do the time.
Financial markets and investments have always been risky terrain, and the risks are on the rise! The investment, political, and macro environments have recently experienced an absolute shaking. Honestly, I don’t envision a return to the status quo. I believe that market dynamics are busy being reshaped, and will be somewhat different in years to come. The rulebook is being adjusted… and Hive still offers one of the best opportunities when it comes to risk/reward.