Let me first start out by saying we have all come a long way in just a year. In fact CubDeFi launched just about a year ago which was the first time Hive ever had any real connection to the exploding DeFi world.
Since then there has been much process on many fronts and changes. Things such as
There are two things that make or break a blockchain.
New revenue coming in and velocity.
New revenue gives value to the token and it all ads up. Layer two tokens such as LEO that contribute to other blockchains such as Binance and Ethereum get wrapped and have the ability to bring value back into HIVE (It also has the ability to take it out though as well) Ad revenue that is used to buy back the tokens providing a fresh injection of funds.
This new revenue also comes from applications such as splinterlands in multiple ways. The first being they need resources to run the application and bring on new hive accounts to be able to transact. They also bring in revenue from the selling of packs, SPS, DEC etc. This all creates the next thing that gives value to a blockchain.
Velocity which is how fast and how much of a crypto is being traded back and forth. For me I don't believe there will ever be a one cryptocurrency fits all and it's why it's important that a blockchain such as hive is able to work with other chains. This is why I love things like wrapped leo for Binance and Ethereum as it's another point to move funds around. If there's an application such as Splinterlands I want to invest $100,000 into well now I have that option to do so by moving my Binance tokens or Ethereum tokens for example. Splinterlands also offers up many other connections all the while collecting some fees on top of it. This brings me into the next point.
Hive itself has only begun to start touching on this. With a feeless transaction and resource system people are ok with paying a small fee as part of the price of a quick swap or for using a market place to buy something. Take WAX for example. It costs that application to run WAX that has to be staked in order to support the transactions happening on the application. The game or application earns that by charging a small fee for any transaction of their assets. In most cases on wax this is 5%. That means for example if Splinterlands sells a land plot for $400 and changes a 5% collection fee that means they just earned $20 off of that single transaction. You can quickly see how this can become a huge amount of money for the company to continue development and build their project and creating a rather fluid system. Now imagine if Hive started to incorporate these things.
The more trading, swapping and action that takes part on the chain the more fees could be collected for any number of things.
Right now we are in an area where developers are quickly coming on to the blockchain. We are talking about the ladies and gents who built the Facebooks and Twitters of the world and they are now up for grabs. Many of them themselves didn't like what they saw happening and many spoke out, quit their jobs and are looking to build better.
If you're going to learn one thing in your lifetime you're going to need to learn coding at least on some level. Coding is going to become so engrained into every day life that you need to know or at least have an idea of what someone else is talking about otherwise you will be left behind.
This mass production of applications is what fuels the velocity and wealth. As more demand for applications rise so does velocity and so does demand for it. Your simple supply and demand on a whole new level. It's why this year I'm not only building myself a sustainable passive income in crypto but I'm building ground floor investments into these people to build these applications and be part of it primarily focused on Hive.
As I always say in my own personal quote
My first greatest investment was in myself, my next best was investing in others
The combination of all of this when put to work is what will take Hive from a $500,000,000 market cap into a multi billion dollar blockchain.
