One of the things that I believe is crucial for a cryptocurrency to be successful is for the token to be in strong hands. This is something that I felt was present among the Steem community and it proved true over the last month and a half.
It is often observed how many wallets holding large amounts of Bitcoin do not conduct any transactions. They are HODLers all the way. This provides a great deal of promise for the future of that platform since the token holders are looking long term. They are not dumping with every drop in price.
Because of recent events, the community on Steem, for the most part, came together. It was uplifting to see the stance the community took with its actions. By this I mean, the amount of tokens that were powered up and the number of votes cast. This enabled the community to battle to a stalemate.
While it is easy to think that it was all the doing of the larger accounts, the simple fact is there were thousands of dolphins and minnows who were involved. These individuals are just as dedicated as the largest of whales, providing all they could to the cause.
As we know, the main result from all this was the forking that led to the creation of Hive. This caused somewhat of a split within the community as some chose to remain on Steem while others moved to Hive.
Even thought the numbers of a bit smaller than they were, I think we can conclude that the HIVE token is in some very strong hands. In fact, it could be possible that the hands are stronger since there is a renewed dedication and excitement. This is only going to enhance what takes place going forward.
One of the things I always followed was the number of accounts powering up. It is something that I will have to start again. However, when smaller accounts are adding 20%, 40%, or 60% to their holding over time, as we saw, this makes a difference. Individually each of us does make a difference since it results in a collective gain.
Token hodling represents belief and dedication. It is very easy to get tokens in people's hands. That is nothing more than an airdrop. What is difficult is getting people to hold those tokens. The tendency is to shrug the token off and dump it.
Over the first few weeks, we will see some of this as many bought STEEM to get the airdrop. It was a quick way to double their money. Those people will sell out, causing downward pressure on the token. This, of course, is another opportunity for the stronger hands.
CZ, for better or worse, said that as long as he is around, Bitcoin would never go to zero. We can make the same assessment of HIVE. As long as there are so many thousands of people who are truly dedicated to making this work, the token has a floor in it. Even with all the chaos with STEEM, I think the low was about 7 cents. Hive has the advantage of being a platform that does not have the same baggage that Steem did.
For a community led initiative to be successful, it requires the efforts of many people. With Hive, I see that dedication starting with what many are doing with their tokens. The fact that we have numerous members talking about powering up is a positive sign. This is not just a small circle of people. There are thousands doing the same thing.
Thus, I feel the stronger the hands holding the token, the greater the chance of success.
Hive is off to a great start.
Posted via Steemleo
