Hive Supply Shock

This is the hive monthly chart

The first thing I notice when I see this is the volume

Looks like we are setting records when it comes to volume

Who makes money on this volume? It’s the exchanges

However, the more people buy tokens to fund new or existing account, the less coins there will be on market

Now, exchanges dont work the same as uniswap V2 for example where if you put in one thing it can amplifier the price of the other thing

We have a central order book clob blah blah blah

However

One thing that is not blah blah blah is fundamentals, I mean actual truth and numbers

So when there are less and less hive tokens available to be purchased, and a line of people waiting to get in, it will pump the prices hard

Funny how this happens after #leo #inleo #leofinance team up with #dash @dashpay

I do not have some explorer that shows me all the metrics in the hive world so I am just assuming based on what I am seeing

I mean who else is bringing users, activity, and MONEYYYY into this system?

I can only go off of what I can see, if I see it, I can say “I was there, I saw it” in other words, I am a WITNESS to WHO is actually paying the bills around here

Now, I must say. Imagine this. I have seen coins go up WELL over 100 x in a year with MILLIONS of liquidity…

So, hive needs to go to like $30 for me to start getting giddy

But if you have a lot of hive, that $30 price should REALLLLLY get you giddy

I mean someone tell me, if hive goes to $30, and lets its its $0.50 right now, does that mean on average I should be making 60x what I normally make daily? Which is like $2-$3 here

So $120-$180 a day

Sounds amazing

But then I think of the people who make $100 already

Does that mean that can be making $6,000 a day?

I mean, it just won’t happen

Because I am being realistic, where is all that actual LIQUIDITY going to come from?

It’s the same issue that has been tested with pulsechain

$1.2 billion dollars sacrificed

Only like 500 million ish of that was NOT hex

But there was not that 1.2 billion of liquidity.

So, prices go down and down when sold, and up and up when bought

So after 2 years of waiting for the coins to come out, the liquidity couldn’t handle the sell pressure

This is what happens when you launch during the bear market, you dont have a lot of people waiting to buy up a new coin

It takes a lot of economic energy to sustain an ecosystem. I mean if it wasn’t for the PLSX buy and burn then all of pulsechain would be lower.

Pls has some inflation combined with burning so sometimes net deflationary but still there’s new coins being paid to validators

Inc is the only coin the rh OA doesnt have a lot of, because it is paid out to V1 farmers

So that is basically a forever dump token… for now, until there is a reason to lock it or buying more of

Hex, the people who know know why its awesome and the people who think it sucks are very ironic and silly lol

PLSX though, is the secret weapon, it has 0 inflation, and it has built in buy pressure

You know how decentralized finance has a tiny fee per transaction

Well pulsex has a 0.29% trading fee (I think uniswap is 0.3%)

And all of it goes towards buying and burning plsx

That is $50,000 to sometimes over $300,000 of buying plsx of the market and burning it. Already almost 6% of the supply is gone

This is sustaining the chain in my opinion

Eventually, eventually eventually all those people who made BANK on other tickers on pulsechain will cash out to these tickers, and we all know when ETH goes to ATH’s Richard will magic carpet ride his whole chain (opposite of rugpull)

There are a lot of buy and burn tokens on pulsechain and they are doing AMAZING

This is what happens when you program supply shock into your coin

Now, eventually, hive’s inflation will be super low, but that is still very far out.

For now, there are only a few ways to combat inflation

One way, is new users, and old users putting in new money

This is key

When current users compound, that is good for price

Think about it, if I just kept all my hive power

And I took all my HBD and market bought Hive with it, then that is super good for price

Inflation is only bad if it gets dumped

If inflation is paid to long term holders who are compounding then its not bad for price at all

New users is huge

There is A LOT of money out there

You ever go to an urban area, and see the million dollar houses?

And you drive by a million, a million, a million, a million

Each house has cars in front, each bedroom has clothes and tvs and computers…

There is MONEY out there

There could be someone out there right now, who just inherited 25 million dollars, and is looking for somewhere to put some of it

That one guy throwing a million dollars at hive would chew up so much of the available supply

Now imagine 10 of these guys

Then 20…

It’s all coming guys

We have come a long way from steem

Steem was always hell because from day 1 we were like wtf why do these few guys get SO MUCH FREE SUPPLY

Like wtf

But hive was born

And its hard sometimes to build something from the ashes of something else

We are essentially one big DAO

New players can come in, rally up some delegations, and take this chain anywhere..

There is a lot of potential for goodness

Posted Using InLeo Alpha