Hive’s Unique Power On The Blockchain

Something To Remember

Hugely successful ideas are often quite similar to already existing ideas, except, they often have a very unique and even particular angle. Businesses centered around service delivery are often fairly similar. However, when you isolate the leader of the pack, you often find it has a little something extra, or special, that the others don’t have. It’s this simple dynamic of creating an experience that is more beneficial and rewarding than the status quo that eventually wins over the market. As I have considered Hive, I have noted that this very idea is rooted in the daily workings and essence of Hive.

The Underlying Protocol
When you take a quick look at Hive you are able to ascertain that it operates on a type of proof-of-stake protocol. Hive Power is a weighted allocation that will ultimately dictate your curation rewards. In a similar way, traditional POS will reward “stakers” with a set percentage and allocation. A traditional POS blockchain is then rewarding the owner of the coins during the time period that the coins are delegated. This is where Hive has a unique angle that goes beyond the “staker” being rewarded.

An Inclusive Protocol

A Hiver is able to extract value from the blockchain while simultaneously imparting value to others. This is a truly unique dynamic that doesn’t exist on other POS chains. In the traditional scenario, only the entity staking the coins is rewarded, while in the Hive economy, the reward is evenly distributed to other community members as well. Ideally, those who are creating value and bringing life to the Hive blockchain. This is something that perhaps many are aware of subconsciously but have not really meditated upon at length.

Where The Value Comes From

The blockchain in and of itself has no real inherent value. The value exists due to the activity that is taking place on the blockchain. This can be clearly seen in many new projects that have great tokenomics and are generally well designed. The value is yet to be established, and as a result, the token price is suffering. The tokenomics of Hive facilitate and undergird the value that is built on top of Hive. The one needs the other, and success is unattainable without both dynamics coming together. In a perfect world, the value is interchanged via a relative exchange. That which holds value extracts value. Obviously, there are conflicting ideas as to what constitutes value. However, most of us can agree on a basic “core idea” of what is valuable.

By Default

He who holds value on the Hive blockchain ultimately shares his value with others by default. This does not take place on other traditional POS networks. This dynamic works as a way to reward the “staker”, as well as to encourage and uplift others. This is tremendously powerful in terms of increasing adoption. Once more people understand the dynamics and begin applying themselves, we should see Hive reach significant milestones in terms of growth and adoption.

We are living in a time when people want to be rewarded for their time and knowledge. People can share their knowledge and experiences on Hive and enjoy the opportunity of stacking up some Crypto for retirement, or other “plans” further down the road. I guess I am preaching to the converted, which is exactly why outside exposure is imperative if we want to see Hive reach its full potential.

What Can You Do?

As a Hiver, I continue to dedicate space and time to Hive on my own websites. I have also started using LeoGlossary as a tool to educate readers, and simultaneously redirect traffic to Leofinance. I believe that if each of us finds ways to share our experiences of Hive outside of Hive, we will make significant headway. I never go as far as to “shill” or promote any project. I simply share my experiences and my journey. Thanks for joining me on this particular leg of the journey. All the best, see you in the next one!

ETH Just Made Me More Bullish On Certain Layer 1 Alternatives

A Done Deal

Well, the ETH Merge is now history and proved to be a bit of a non-event, in terms of price appreciation. With the price of ETH currently trading at the $1300 level, I am sure there are a few disappointed investors out there. ETH was at one point, my largest holding. I began moving out of ETH between $4200 and $3000 some time back. I still hold ETH, but not much. Initially, I had considered building up a new ETH position once markets find a bottom. I will most likely still acquire some “cheap ETH”, given the opportunity. However, I am slowly beginning to move in favor of a few “ETH killers”. Given the state of the market, I have not really addressed altcoins much in recent months. Regular readers will be aware of my viewpoint when it comes to layer 1 alternatives. Given that centralization has become such a concern when it comes to Ethereum, competitors are now even more appealing to me. You have to remember that many of these alternatives were dismissed due to concerns about centralization. ETH appears to no longer have that upper hand and is likely worse off than many projects that were initially dismissed for the exact same concern.

More Bullish

This has caused me to become even more bullish on chains such as Solana and Avalanche. These two projects have been my primary focus outside of ETH. However, readers will remember that once Cardano fell below $0.55, I developed quite a bullish case for the project. Despite Anatoly Yakovenko criticizing Cardano for their meticulous building practices, I however am in favor of their approach. Solana hit the market as fast as was humanly possible and was able to capitalize on the bull market of 2020 and 2021. However, Hoskinson has chosen an approach that lends itself to perfection. The two are so different, and yet both layer 1 blockchains, which is exactly what I want. Diversification is always key! Here we have ETH as the leader, followed by a rival that boasts tremendous capacity in the form of TPS. Cardano, on the other hand, is more of a true “investment grade” blockchain, in the way that the team has gone all out to try and produce a truly superior project.

What About Avalanche?

Avalanche recently moved into a beautiful accumulation zone at approximately $15, which I am sure many took advantage of. I am however still expecting even lower levels. Avalanche is also quite scalable, especially via Subnets, and also has quite a strong VC backing, similar to Solana. Depending on how low AVAX goes, it could yield some really great returns in the up-and-coming bull run. Avalanche also experienced a heavy blow during the LUNA crisis, which placed AVAX under some pretty heavy selling pressure. My focus is pretty much centered on these three alternatives. It’s also important to note that all of these projects are POS, which guarantees a form of passive income, as well! Last time I checked, AVAX had the highest reward, while ADA offered the lowest return.

Final Thoughts

A well-diversified layer 1 portfolio is a good idea, in my opinion. All three of these projects could carve out their own unique “niche” and go on to prosper well into the future. All three chains are also very cost-effective in terms of transaction fees, which can oftentimes be a deal breaker for many. My selection also ensures that I am exposed to speed, scalability, and excellence. Hopefully, I have covered the bases. It’s also worth mentioning that NEAR is another really interesting option, one that I may include, depending on where prices go. Thanks for stopping by. Catch you next time!

Contrarian Or Realist?

Not Necessarily A Rule

It was not that long ago that market participants were extremely bullish regarding Bitcoin and the broader Crypto market. There were many calling for $30K and even $35K in the immediate short term. The general consensus was that Bitcoin would not revisit sub $20K again and that ultimately, we were heading higher. It’s easy now for everyone to acknowledge that this is not going to happen, especially after falling below $19K yet again. Analyzing and viewing data as a realist will often place you in the categorization of a contrarian. Some have gone as far as to say that if you want to succeed, simply do the opposite of what everyone else is doing. This may sound accurate in theory, but it’s unfortunately not that simple. Provided, of course, there is a case for having a contrarian viewpoint. Markets can be quite tricky at times, causing the obvious path ahead to appear not so obvious.

Correct Sequence Of Events

Do you want to know why so many investors are unable to be realistic regarding their expectations of the market? The short answer is that their sequence is inverted. The correct way to go about investing or trading is to conduct your research first. This includes technical analysis, on-chain analysis, and whatever other metric you wish to choose. Once you have built a solid case, you can consider opening your position. Many simply buy what looks appealing and then try to bend the metrics to affirm their decision. This happens all too often and is largely responsible for the delusion that so often sends market participants down the garden path. It’s a simple case of “first things first”.

Isolated Signals Are Deceiving

Just because one or two signals have flashed, indicating a certain outcome in the market, does not necessarily make it so. Trading without confluence is quite simply trading with the odds against you. As a trader, the most powerful stance you have is to have the odds in your favor. You cannot guarantee an outcome, but you can seek out confluence, which ultimately achieves the desired result. Do not make moves based on a single indicator or signal. If you are able to identify multiple signals and indicators that affirm the signal, you have managed to obtain confluence. In other words, everything is in tune. It’s similar to a band playing in tune, it sounds good. An isolated indicator is similar to a band with a well-tuned guitar, while every other instrument is seriously out of tune. The end product is quite simply a massive failure. The same fate awaits those who choose to base trades on one single indicator that supports their idea.

Learn The Disciplines

Trading is quite simply a practice that revolves around certain disciplines. Learning and applying these disciplines will ultimately increase your success rate. Those who are naturally disciplined obviously find trading a lot easier than those who are more emotionally inclined. The disciplined trader will often execute a trade that is contrary to the status quo. The reason, he is following disciplines, not emotions. Human nature is inherently emotional, and disciplined traders learn to keep emotions in check.

Ideas For The Next Cycle Top

Staying Ahead Of The Pack

If you wish to capitalize and take full advantage of the next cycle peak, then you have to begin formulating strategies now. Being ahead of the market will often appear as being “out of touch”. When I look at many of the comments during the time I chose to short ETH at approximately $2K, it is apparent that many thought that I did not understand what was playing out. In hindsight, it is clear that $2K was the top of the “Merge” rally. This is exactly how it always happens, so if you think that the market will reach some sort of consensus at the next market peak, you are mistaken. There will be no overwhelming majority signaling a top. It will come and go, only to be realized much later. There is no anticipation, it’s as if the market enters into a mild state of coma. Market participants continue to function but seem to be unaware of the market conditions at play.

A Slight Shift

Shifting a significant allocation to stablecoins in May of 2021 turned out to be a lifesaver for me. I intend to repeat this strategy again. However, this time HBD is going to make up a significant portion of that allocation. This will not only be a way to lock in profits but also a way to earn a very high yield. This particular move has the potential to create a fairly significant form of passive income. If you think locking in value in a typical stablecoin is a good move, then consider how great it is if you are able to earn 20% on that stablecoin. I think Hive will eventually become a significant player in the world of Web 3 and so I am looking to increase my presence and allocation. There are a number of great opportunities within the ecosystem. Unlike, HBD, DeFi projects are best attained during bear markets. It makes way more sense to accumulate HBD when prices are high, so as to lock in the value of the Crypto you are exchanging it for. On the other hand, if you are going in with fiat, It’s always a good time!

New Trading Accounts

Another idea that I am likely to implement is to realize profits in the form of USD, and then allocate them to new trading accounts. Shorting from the peak of a market is a great move to make, you can simply just sit back and amass profits while the market unwinds. These accounts will be run on modest leverage, ultimately generating profits to utilize for accumulation at the bottom. If you have a fairly good handle on the markets, and technical analysis, you should be able to predict approximate levels. Exact levels are tricky to predict, but approximate levels are not that difficult to predict, but only for those who have knowledge and experience. So few are able to predict accurate levels because they lack the former.

Traditional Investments

Depending on how the economy is looking at this point, I may opt to make small investments in more traditional avenues. As I say, one cannot surmise at this stage of the game. However, I will evaluate more closer to the time. These are such turbulent and uncertain times, that it is extremely difficult to make investment decisions before the time. It’s always good to have as many income streams as possible.

Continuation

I will also be looking to strengthen and expand my current passive income mechanisms as well. This is something that can continue throughout both bull and bear markets. The generation of yield via HBD and trading will act as a good income source to further grow these existing mechanisms. It’s simple, keep building up that which is already working, and continue to build new mechanisms. At the end of the day, liquidity/cash flow is essential in the process of wealth creation.

Build When Nobody Cares

The Time Is Now

It’s difficult to imagine how things will look in the future. However, one thing is for sure, unless we build now, we will have nothing tomorrow. This very basic principle seems to elude many. Not only is this the best time to BUIDL, but it’s also the “cheapest”. Building in the Crypto space often requires the acquisition of digital assets. These assets are on sale and are likely to become even cheaper! It can be somewhat challenging to continue unabated while so many are simply losing faith. What does act as encouragement is the fact that this is nothing new. This is not only how the “story goes” in the Crypto space but in many markets. Let’s just remember this simple principle: Money is made in bear markets and realized in bull markets. It will always be this way. Think of a bull market as seasonal rains. Unless you have made preparation for some type of catchment, the rains will be of no use to you. How people simply “arrive” in a bull market and expect to “make bank” never ceases to amaze me.

The Smart Remain Undeterred

A recent post by @taskmaster4450 on Leofinance addressed the goal of attaining a $100 million ecosystem. Considering where the market is right now that may appear to be out of reach. However, instead of becoming discouraged, development and growth continue. This is the correct mindset to have. If you look at what has already taken place on Leofinance in the past year, it is quite impressive. The launch of both PolyCUB and Threads has taken place during a bearish environment. The team continues to build regardless of valuations and general market conditions. LeoGlossary has also recently been launched, which has seen @taskmaster4450 elbow deep in work. It’s great to see the projects I have selected being so proactive in a time when many simply become complacent. Hive, in general, has been a source of motivation during this bearish phase. The development has been unparalleled.

It Has To Be Done

Coming to terms with the task that lies ahead is paramount to actually getting started and remaining active. You might not be a developer, but you are still going to have to build something, one way or the other. You are going to require some sort of catchment for the future rains that are on the way. This is probably the best time to throw off procrastination and laziness. The final quarter of 2022 is likely to offer the most amazing bargains, in my opinion.

A Common Misconception

I find that many view creating passive income as some sort of investment. In other words, some sort of interest or yield-producing investment such as DeFi or staking. This is true, but not necessarily the case. There are many different ways to acquire some form of passive income, and not all require investment. Some build networks via affiliate programs. Many find ways to earn royalties through the sale of ebooks and other products. It’s simple, if you want to create passive income and don’t have excessive funds, you will find a way! This is why some continue to succeed, while others continue to complain. Choose your side. There will obviously be future bear markets. However, this one, in particular, will go down in history as being one of the greatest opportunities. Just remember, it’s not over. Many are subconsciously viewing the recent lows as the bottom, which is a little premature, in my opinion.

Final Thoughts

We are standing at the precipice of a significant revolution and shift in our economic constructs and practices. This is the time to BUIDL. We won’t get to relive this opportunity again. Time stands still for no man. Enjoy the journey and do your best to do just that little bit more each day, and you will be surprised at the progress you make! See you next time!

I Will Eventually Flip Bullish On ETH… Just Not Yet!

It’s No Secret

My regular readers will know that I have not placed much hope in a Merge rally. I went short just below $2K during the recent pump. I have consistently opened new shorts at various levels since then. It’s not that I don’t see value or potential for ETH, but simply that I am honoring higher-level indicators. ETH has managed a fairly impressive run when you consider the environment. Had it not been for the current macro picture, I would have been a lot more bullish. However, as mentioned in a recent post, upside is very limited in a risk-off environment. Unfortunately, we are still at the stage of being classed alongside risk-on assets. This is partly true for many altcoins, but BTC and even perhaps ETH are in many ways in a class of their own. Since the inception of Crypto, the market has moved in tandem. We are yet to experience compartmentalization within the Crypto space. A scenario where BTC could drop, while other assets remained stable, and vice versa. A greater distinction within the space will eventually surface, but that will come as the market matures. 

A Successful Merge

Well, at least the event went off without a glitch and everything appears to be running smoothly, at least to my knowledge. However, there was no pump whatsoever, which is what I was expecting, and set up trades accordingly. Another concern is the fact that only two addresses run almost 50% of all the POS nodes. Now that is some serious centralization, in my opinion. I don’t exactly know how anyone is able to look past that one! Solana has always been slammed for being too centralized, but this is exactly why I have chosen a few layer-1 blockchains. There is no perfect chain, and while ETH definitely holds the most promise at this stage, I wouldn’t rule out Solana or Avalanche securing a sizable chunk of the market.

The Next Few Months

I know the tokenomics make a fairly strong case for price appreciation, but I want to see how they actually play out in real terms. On top of that, I still anticipate further downside for all markets. This is probably my biggest deterrent at this stage. No matter how bullish something may appear, there are other factors at play that are way more significant and will ultimately dominate all markets, at least for now. Provided there are no further issues, I would be looking to go long on ETH once we experience the “final flush” that I believe is still on its way. Being an effective trader or investor requires that you stick to your guns, provided you have the data and confluence to back you up. There have been a number of calls of late, which have seen me being a tiny minority. However, I have been right, which is what counts. If you change your viewpoint based on the opinions of others, you will continuously be in a state of indecision.

Final Thoughts

I will be looking to cautiously continue shorting ETH. This is not specific to ETH but is more a case of the broader market. However, I have some ETH that I am using as margin, so I will continue to utilize it when the opportunity arises. Likewise, if there is a strong case for a momentary pump to the upside, I may well go long. I do however not want to get caught in a long position, as I believe confluence is suggesting further downside. Anyway, that’s where I stand when it comes to ETH. Thanks for the visit, see you next time!

Bitcoin Is Waiting For A Very Specific Disaster

When Things Go Wrong

Looking back to March of 2020 reveals exactly how dangerous leverage can be. It also reveals that in the moment of disaster, Bitcoin and the broader Crypto market take the hardest blow. However, once a capitulation event has occurred, Crypto generally offers the best odds. Something that you have to be aware of is that many traditional investors are still simply “testing the waters” when it comes to Crypto. For many, stocks are still the primary focus. In an event such as the covid crash, margin calls get triggered, and fast! If you are going to be able to cover those margin calls, then you need to act speedily. This is where the speed and accessibility of Crypto work against itself. Crypto is extremely liquid, especially if you are maintaining custody and making use of a DEX. There is no “processing period” that often occurs on share trading platforms. The market also trades 24/7, ultimately removing further friction and delays.

The Scapegoat

Traditional investors continue to place the majority of their allocation in traditional markets. Bitcoin is simply a minimal play, which means that their commitment is to the majority of their portfolios. Bitcoin becomes “easy liquidity”, which is used to protect their larger positions. This causes an already volatile market to become even more volatile. Traditional investors pull capital as the markets collapse. This accelerates and intensifies the collapse of the Crypto market. This then triggers liquidations, which ultimately sparks a chain of liquidations. There is simply no substantial buying pressure in a capitulation event. Relatively speaking, positions in traditional markets are receiving more capital to buffer and offset liquidations. The Crypto market is, unfortunately, providing a lot of that liquidity and therefore doesn’t stand much of a chance in the face of calamity.

Not So Fast!

As I mentioned, this is simply in the moment. Once the blood has been shed, the best place to be is in a newly acquired Crypto position. You have to do the right thing at the right time! Getting the timing wrong is the equivalent of getting everything wrong because the outcome is exactly the same. In my opinion, further downside is inevitable. Another significant leg down, combined with a significant failure within the banking sector would be the “perfect storm” to send Bitcoin into a fresh bullish phase. If markets find a floor after significant bloodshed, Bitcoin will once again garner attention, similar to that of 2020. If further calamity strikes that affirms a decentralized, unseizable form of money then I would be extremely bullish. A move like this would most likely lead into the halving, where price action would push even higher.

Patience

Positioning yourself for the best outcome is at the heart of effective portfolio management. Those who were laughing at the patient when BTC was at $25K recently were suggesting that not buying would result in “missing out”. A simple lesson in risk management: Waiting for markets to unwind and bottom costs nothing. On the other hand, buying too early can be extremely costly. Furthermore, even if one were to miss a move, it also costs nothing. Learning to preserve capital is essential in any market, especially Crypto. I must be honest, this cycle has produced the most “disconnected” market participants that I have personally experienced. This just makes it easier for “Smart Money” to keep riding the waves that “retail” create.

Final Thoughts

Bitcoin actually needs a solid flush-out bottom scenario, followed by an event or events that will ultimately validate it as an “unstoppable alternative”. If this plays out, I believe that we will see some truly significant moves to the upside.

Time To Rethink Your Crypto Income Strategy?

The Birthplace Of Creativity

When markets move lower than expected, and for longer than expected, many find themselves in a challenging position. Simply buying Crypto assets as a speculator is not something that is going to be paying off anytime soon. Forget about 20% rallies, these moves are trades and not investment opportunities. I have addressed this a few times over the course of this bear market. If you are a skilled and knowledgeable trader, then you can take advantage of these pumps. However, for many, it is not really a viable opportunity. Those seeking to secure Crypto gains or earnings in an environment such as this are faced with a fresh challenge. Seeking out altcoin gems is something that is only likely to pay off in the years to come. Furthermore, it could even be somewhat premature. If BTC experiences a significant drop below the previous low, which I believe is extremely likely, you can imagine the decimation that awaits altcoins.

What About DeFi?

When it comes to DeFi opportunities, it becomes extremely uncomfortable to offload your rewards. With the prices of DeFi tokens being so beaten down, it makes a lot more sense to simply compound your rewards. You also have to consider the viability of selling. At this stage of the game, the financial reward is marginal and not very meaningful. More sellers will also just place more pressure on an already fragile market. This will ultimately just devalue your staked allocation. In my opinion, there isn’t much to be found in the DeFi space at the moment. It’s simply a time of compounding and picking up significant discounts. However you choose to look at it, typical strategies are not that viable in a bear market.

Hindsight Confirming The Obvious

This is why this channel has been dedicated to the promotion of building passive income streams, and I think the reasons are now pretty obvious. Firstly, the income flows in both bull and bear markets. It can be utilized to increase exposure at discounted prices, or as disposable cash. In a time when it becomes extremely difficult to secure gains, it’s a constant revenue stream that will produce with every passing day and even hour. Obviously, building and developing these mechanisms at this stage of the game is somewhat of a challenge. However, it’s definitely a great idea to begin building with the future in mind. Passive income is the pinnacle of earning in my view, regardless of the size. It can aid tremendously in creating the “compound effect”, which is a game changer when building wealth.

Getting Busy

This is also a season when exchanging your time and talents for Crypto is for many a must. Making use of the plethora of Crypto platforms online can also help generate additional Crypto income. I have also been quite vocal in regard to projects like Hive, which has so many different, and even unique opportunities available to those willing to put in a little effort and “stay with it”. It’s always important to remember that this is generally a time of accumulation and preparation for “tomorrow”. If you are not trading, then you need to be active in ideas such as these, in order to remain relevant in terms of earning and staying alive. Many don’t make the decision to exit Crypto, they simply become lethargic during bearish phases and before they know it, it’s no longer part of their daily lives.

The Challenge

Bear markets challenge everyone, even those of us who have endured the cold before. Yes, surviving a bear market will give you an advantage over newcomers, but it’s still a challenging time. An important point to bear in mind is that all previous Crypto bear markets were during times of stability. This bear market truly is unique in terms of the macroeconomic landscape. Things are likely to become even more challenging, which is why it may be a time for many to reevaluate. This is obviously not investment advice, but I do challenge readers to consider the future with caution.

Shaking The Web 2 Mindset

Preconditioned

So, what really differentiates Web 3 from Web 2? Well, decentralization for one, and in terms of social media, censorship resistance. Everyone is an advocate of decentralization and Web 3. However, I find many still viewing Web 3 through the eyes of Web 2, which is actually counterintuitive. Embracing Web 3 will require a fresh perspective. Many are approaching a new “protocol” with an old perspective. This can be limiting in terms of Web 3 actually being utilized to its full capacity. Spending years on platforms such as Facebook and Twitter have preconditioned us to think and interpret “things” a certain way. Strip down the essence of Web 3 and you arrive at the very core of what it actually has to offer in terms of superiority over Web 2. Privacy, true ownership, and censorship resistance are at the very core of Web 3.

Isn’t It Strange?

I love Hive and think it has so much to offer, even at these early stages of development and growth. However, I find an “unspoken rule” within the community rather discouraging. Why? Well, it promotes the very thing Hive is supposed to eradicate. I have come across a few instances where community members have mentioned that if anyone were to post more than three posts in a day it would be seen as spam, and the community doesn’t look kindly upon it. That is censorship. If someone is productive and oozing with knowledge and passion, why would you frown upon it? After all, his actions are “bringing life” to the ecosystem, especially if they are of a decent caliber. This is a typical Web 2 mindset.

Too Short

Another interesting Web 2 approach is to view short interactions as spam. Not necessarily, I or anyone else can impart something of tremendous advantage and power in a single sentence. At the same time, someone can craft a paragraph that essentially holds no value. Value is information or data that is beneficial or empowering. Spam doesn’t need to be short, but it often is, simply because spammers are lazy by default. Web 3 is all about “true value”, don’t be fooled by how it arrives. Web 2 thinking has programmed us to think and interpret a certain way. However, it is often true that short and continuous activity can be spammy but it’s not necessarily the case. What it boils down to is rewarding value, not penalizing it.

Production Is Value

A content creator who produces work of a relatively high standard is even greater if he can do this at a highly productive level. Imagine frowning on someone who produces a production line of quality. It literally blows my mind. Typical Web 2 thinking, if it’s “too consistent”, it’s spam. No, if the consistency is there and the quality is there, it’s value! You won’t grow an idea of “zero restrictions and freedom” by imposing “punishment” on productivity. It’s ludicrous. I myself have never posted more than three posts in a 24-hour period, but I can never actually think of expanding in that way because there are “unspoken restrictions” that render it powerless. I believe excellence should be acknowledged and rewarded, and if it can be done at a higher frequency than others, it is even more excellent. These are my views, and I am sure many will disagree, but that’s exactly what it’s all about, isn’t it?

HBD – A High-Interest Savings Account You Actually Own

Savings Or Investment?

Savings accounts usually pay extremely low-interest rates. It is actually rather difficult to think of them as savings accounts, especially when you consider inflation. If inflation is actually eating away at your savings over time then you aren’t actually saving, are you? That’s where Hives HBD “stablecoin” offers quite an exciting solution for those who believe in the Hive ecosystem and appreciate decentralization. Being a form of stablecoin, HBD is designed to be pegged to the dollar. Like many stablecoins, HBD does sometimes wander beyond the peg. However, I found this to be reasonably moderate and is often over a very short period of time. In my opinion, HBD holds its peg reasonably well.

Fluctuations

HBD generally trades in the region of $0.97 and $1.01, which is fairly stable. On occasion, the price has surged significantly to the upside. These moves are generally very brief and create tremendous opportunities for HBD holders. Provided you have some liquid HBD on hand, you can sell the peak and then repurchase once the price returns closer to the peg. However, we are focusing more on the “savings” aspect of HBD. It’s always good to have some type of savings “on hand”, and those who are into Crypto are likely to look for some type of stablecoin when it comes to having some form of savings. Crypto holdings are extremely volatile and sometimes you just need to know you have something growing on the side that is unlikely to lose value.

Risk Is Always Present

We have previously addressed how even money in the bank is not safe from loss or “inaccessibility”. This is a worrying trend that seems to be escalating all over the world. When you consider the benefits of a Web 3-based alternative that is decentralized in nature, the benefits become obvious. This is why many will rather be exposed to potential loss in the event that something goes wrong in a decentralized world than simply choosing a typical bank. There is already loss taking place in the traditional banking system anyway, so it’s not as if it is even really a safer option. No bank is going to offer sufficient returns, in order to outpace inflation. Furthermore, we have seen many banks around the world restricting clients from accessing their own money. This move in particular actually just serves to promote Crypto alternatives.

HBD – An Income Alternative

When you consider the returns via HBD, it becomes a serious consideration as a form of Income. Those who are able to earn a significant stack over time, or simply allocate a hefty amount, are able to generate a decent level of income. I guess it would be wise to begin the journey with the intention of a supplementary form of income, as opposed to a full-blown wage replacement. We saw many suffer tremendous losses with UST. I am not saying that anything will happen to HBD but it is always wise to diversify. Furthermore, one should always consider the worst-case scenario. Hopefully, it never takes place but it is always best to be prepared.

Final Thoughts

The entire Hive ecosystem is such a great opportunity, in my opinion. There are so many opportunities available to those willing to risk and embark. Investing in a new and developing technology is always risky, but it is also where the early adopters are extremely well rewarded. Hive is a relatively well-established project and yet simultaneously has significant upside potential. These are the types of projects that I am most bullish on as I look toward the next bull market. Anyway, wishing you well on your Crypto journey, and see you in the next one!