There is little doubt that 2022 was a very rough year for cryptocurrency. Between UST, Celsius, and FTX, the industry took a beating. Unfortunately, the fallout is far from over.
If 2022 was a year of major scams, we can consider 2023 as the year of regulation. There is no chance the government, politicians, and the associated agencies sit back and allow a repeat of 2022.
After all, they do live by the mantra "never let a good crisis go to waste".
Therefore, we can expect regulation to take place across the world. Different countries are going to approach this matter with a heavy hand. Some might be a bit forgiving yet the odds are great that we will see overzealous politicians doing a lot of grandstanding. Sadly, much of this finds it way into the bills that eventually become law.
This is going to be a major test for cryptocurrency. Digital assets are going to come under fire. Who is able to withstand the onslaught will be the question.
If we look at alt-coins, most are going to crushed. This is inevitable. Please note this does not mean they will disappear. However, we are going to see the regulators target them. Gary Gensler, head of the SEC, is already on record as stating all cryptocurrency other than Bitcoin is a security.
There is one that does fly under the radar and is actually outside the reach of Gensler and the other agencies.
This is $HIVE.
Here we have a coin that does not fit into the same category as the rest. We discussed this frequently but it is worthy of repeat.
Since there is no company, pre-mine, lab, or foundation behind Hive, it is not subject to regulation. In fact, compliance is impossible without a single point such as a company to adhere to what is set down.
Instead, we have a bunch of individuals (and projects) spread all over the world with interests not aligned with each other. They are operating independently, often in anonymity.
This puts Hive in select company. What someone asks who is in charge, the answer is obviously nobody (or everybody).
Certainly different projects might be subject to regulation since they are often structured as companies. The base layer, however, is outside of this.
The same hold true at the second layer as that is model, to some degree, after the base layer.
As we can see, this could really become problematic if we have sidechain after sidechain constructed in a decentralized manner.
We have a lot taking place on this blockchain. Throughout the bear market, development as continued. This is a vital point.
Why am I confident that Hive will breakthrough this year? The reasons are many but one is the regulators.
Since we can presume many will come in with a sledgehammer, this is going to set many chain back. Compliance is rather expensive. Legal battles are going to ensue, something developers are not going to want to be a part of.
On Hive, we have none of these problems. Assessing the features and financial resources that are already in operation is something we can offer. Fortunately, those features keep expanding.
Certainly, we can expect the larger entities such as Ethereum (with the Foundation and Vitalik) to weather the storm. There will be many others, who simply cannot. Look at what happened to LBRY.
Hence, Hive will be elevated simply due to the takedown of others. This is rapidly becoming a game of attrition. Who can remain standing is going to be raise to astounding heights.
This, in my view, is going to be Hive.
When things are chaotic and going in a thousand different directions, things become very difficult to monitor.
This is what is happening on Hive.
Due to a lack of centralization and coordinated effort, Hive is basically a bunch of individuals. This is problematic when it comes to progress since things are slow and drawn out. However, as regulators enter the picture, this is a powerful asset.
Ultimately, Hive becomes like herding cats. As soon as you start to chase one, others become harder to catch. There is no net that can encompass a global network run by mostly anonymous operators.
LBRY was a project that had great potential. It is still carrying forward but since the entity behind it is now shut down, what are the chances that much progress is going to be made?
That vulnerability was exploited by the US Government to the loss of the userbase. It is, however, Hive's gain since it is a video platform and we have 3Speak.
Hive is rather unique.
We arrived at this point, not through great wisdom and foresight. Actually, it was an attack that led to us taking steps that provide resiliency to this ecosystem. The fact the pre-mine was eliminated means it is no longer a threat. That also removes the point of vulnerability that is going to plague so many other blockchains.
The idea of setting up something decentralized does not ring true with most people. It actually goes against human nature. The tendency is to build a project by giving oneself significant stake. This is driven by both greed and the need for control.
With Hive, that was the case before the hard fork split the chain. Now, it is no longer an issue. The Decentralized Hive Fund (DHF) has that stake and it is not controlled by any single individual or entity.
Developers will realize this at some point. Many chains go the route of LBRY where projects might continue but development ceases as the one doing it disappears.
The governments of the world might well make 2023 the Year of Regulation, which could have a tremendous impact upon Hive..
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