I agree that it's a crypto asset, not a security.
But it's an asset with more uses than any other cryptocurrency.
It offers zero-cost transactions, a significant advantage over other cryptocurrencies.
It allows for the elimination of borders. We can transfer from wallet to wallet simply by having internet access (it doesn't matter where the people are physically located, as long as the sender has internet access and the wallet will complete the transaction). We can send Hive, Swap.hive, or some cryptocurrencies traded in liquidity pools. It can be converted into HP and generate income by voting. It also allows us to communicate. I'm going to say that it has similar characteristics to many blockchains that have a much larger market cap than Hive. There are cryptocurrencies designed for payments or capital movements that break down borders. XLM, XNO. I don't see the point of HBD; the network pays a high cost by paying 15% annual interest. I think it would be more convenient to charge fees for using other stablecoins to add or remove stablecoins from the network, like USDT for example. Inflation doesn't worry me that much. First, because the global crypto market is constantly growing, the majority of people don't own cryptocurrencies and sooner or later they will have to enter the crypto world. We always look The price of Hive in dollars. I think it should be considered that the dollar is also subject to inflation.
Second, I believe that as the world's population grows, the size of the markets will increase.
I think it's more important for the Hive ecosystem to grow. It generates more value.
I'll give you Solana as an example. There are tokens like Jup, Orca, and Meteora. Those tokens have a good market cap. Have any Layer 2 tokens reached the major crypto exchanges in the world?
I don't think Hive's inflation is a problem. I think the problem is that it doesn't attract developments that achieve success in the crypto world, whose tokens end up being listed on major exchanges.
This is an awesome comment. I need time to digest it and I will circle back.
Thanks for stopping by man!
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This.
Also, USD inflation makes the HBD peg easier to maintain. The problem is that it's becoming harder to maintain because the Hive ecosystem isn't growing, it's shrinking. For the ecosystem to grow the users that are becoming discouraged, because they split ~10% of the rewards and the ~36 whales capture the rest, need to gain more of the pie - and more of the pie yet needs to be available to new onboards that extant creators will attract when their increasing attainment of rewards causes them to make posts expressing their happiness with posting on Hive for rewards.
When the platform arose in 2016, crypto was a new kind of money, and having a stablecoin pegged to the dollar enabled folks skeptical of crypto to have more confidence in HBD. It also facilitated using HBD in commerce, because vendors also had the same problem. Later the fact that whales had to curate posts and gain curation rewards to gain ROI on their stake demonstrably caused derangement of curation, causing trending to be filled with garbage posts whose only purpose was as a common target for whales to upvote to maximize their curation rewards as quickly as possible.
High interest savings accounts would enable whales to gain reliable, predictable ROI from saving their stake, eliminating the need for curation rewards, and eliminating curation rewards would restore curation by subjective valuation of it's quality, rather than because upvoting the most popular post enabled the highest curation rewards to whales hunting ROI.
However, curation rewards were never reduced. Rather they increased. I think authors now get ~10% of the rewards from the pool, while curators get ~60% (I don't recall the relative % specifically, but Holozor knows how to extract that data he showed me recently). Greed is killing Hive.
Edit:
Yes, but CBDC's will just enslave them, not have any potential for enabling prosperity. We will own nothing, and be happy - or else. Remember?
Doesn't the author and the curator get the same treatment?
While the rewards on a post are split 50/50 per the code, there are various mechanisms, such as DV's, and curators targeting higher valued posts, the reduced author rewards for comments introduced in HF27, and now the change in HF28 that more rapidly bleeds VP enabling whales to more efficiently maximize curation rewards while discouraging engagement by bleeding minnows dry of VP when upvoting comments, as has recently happened to me and left me clawing and scrabbling to rebuild my VP for more than a week now. On top of these overt mechanisms, circle jerks, self votes, botnets, and other rewards pool rapine continue to operate more covertly to focus the rewards pool on whale accounts and increasingly exclude minnows and lesser staked accounts.
Cumulatively these mechanisms contribute to whales extracting >90% of rewards from the pool, curation rewards being ~60% of outflow from the rewards pool, and author rewards ~10%. 10% of the pool goes to the DHF where the largest outflows of the DHF are operations whales almost exclusively benefit from, such as the HBD stabilization program, Valueplan, and etc. For more explicit understanding of how whales almost exclusively extract rewards for HBD stabilization, please look at HBD-funder comments, which are employed to apply author rewards to the HBD stabilization fund, but actually mostly are paid out to the voters on those comments, which are published 20 at a time or so, as curation rewards. 10% of the pool goes to witnesses, and the best rewarded consensus witnesses are mostly whales, and have been consensus witnesses almost continuously since 2016.
Edit: there are details of curation/author split that require deep investigation but also contribute to curation rewards dominating rewards pool outflows, such as that upvotes on creation after 1/2 hour (IIRC) provide authors a percentage of the curation rewards in addition to author rewards, and I have little familiarity with more esoteric mechanisms that matter a great deal to substantial stakes seeking to maximize ROI.