There is a big discussion around the present Hive price. With the decline of the last weeks, people are asking themselves whether hive is in danger. I've been in Crypto for 10 years now and still it seems that the price of a token is the most important aspect of it for most users. The price however is pretty relatif. Let me explain why:
Instead of taking the example Hive, I will take BTC to illustrate my reasoning because with BTC the supply is better known. For Hive it might look slightly different but the principle is the same for all crypto at a different level.
What was the difference between 1 BTC in 2014 when it was 250$ and now when it is around 65'000 $? Has the value of one BTC changed? It seems so but back in 2014, I would have had 1 out of 21mio BTC and today this ratio is exactly the same. The proportion of the overall supply didn't change but what changed is the value expressed in USD.
So let's see what changed since 2014. People didn't really know about BTC back then and very few people owned some. Today, almost everybody knows about BTC and a big percentage of the population owns at least a part of a BTC. The price is exactly the illustration of the change in demand for BTC. That's the law of offer and demand. If for a similar offer the demand increases, then the price will increase as well. Since the demand for BTC increased very much, the price made a big jump. The fact that the minted supply for BTC is growing slower over time, simply increased this phenomenon.
So when we have Hive prices dropping, this can only mean that the demand for the token is decreasing. There can be many reasons for that but Hive also has a slowing mint rate over time even if it is not deflationary like BTC. If we look at Hive 5 years back and hive now, I would say the basics haven't changed much. There were some improvements made to the chain but overall a lot of dapps have disappeared in the meantime. I would say we are about at the same point that we were 5 years ago in terms of technology.
I would say that over the 5 past years Hive had some issues and one of them is that most OG's of the chain kind of lost their fire. The people who were very active back then and created apps mostly are not that active anymore. A lot of projects lost their momentum and many things don't work that well anymore. I would say that Hive needs fresh blood, fresh ideas, fresh dapps.
Lower Hive prices are not necessarily bad for the chain. This means that new users can get Hive Power at a cheaper rate. This means that dynamique accounts can grow faster than the ones that are not active. It could bring this fresh blood, these fresh ideas that are needed. Because in the end with this blockchain it's the stake holders that define how the chain evolves. It's the people with a lot of stake that define how the reward pool is distributed, who define which proposals are funded and which witnesses are voted for. I hope that with lower Hive prices, we will assist to such a change that would be beneficial in the long run for hive. I think for all these reasons, it's a great time to grow our hive power.
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