One of the primary things about Hive is that it is a compounding machine.
On both an individual account level and collectively, every aspect of this ecosystem compounds. That is why growth rates, ultimately, can be incredible.
Taking the entity as a whole, we see many factors which will enter into the long term success.
It all starts with the applications. The more applications we have on here, the greater the value of the ecosystem. An improvement in one application has an impact on the whole. Applications are not competing as much as complimenting each other. They simply provide people with choices.
Each day we see Hive growing. We are adding more new members which has a positive impact. Just one new daily active member means we have a larger community than the day before. At the same time, all the posts put up on a given day increase the size of SHive. This helps for the search engines as their spider goes through. Think of it as increasing the size of an iceberg.
Individually, Hive provides the opportunity for incredible growth of one's account. Great riches are going to be made by many simply because there are so many different ways to get paid. Anyone who did anything in the financial arena knows how valuable compound interest is.
To start, holding $HIVE as Hive Power entitles one to get paid a portion of the inflation rate (presently around 9%). This means that everyone who has $HIVE is getting a return on their money. Go and try to get that from a bank. Also, HP is directly related to voting power. Each HP that goes in adds to one's Voting Power meaning that the next vote is worth more. This provides people with the opportunity to earn more.
On Hive, payment is essentially based upon the actions of others. It is the upvotes of other members of the community that provide a post with most of its payout. This means that each follower we receive can also have an impact. A person with a few followers tends not to get many votes. Compare that with the person who has thousands and we see the difference.
I believe everything positive we do on Hive has an impact. Simply by posting a quality comment, one is able to accomplish a few things.
A. Adds to the article which can draw the attention of the author
B. Exposes one to all the followers of that author who are reading said article, meaning one can gain followers.
C. The opportunity to earn $HIVE via upvotes on the comment
D. Adds to one's post count
E. Increase one's reputation
This is the payout for one comment. If we take that and project that out a few thousand times, we see a much bigger impact.
That is the power of compounding.
If our everyday lives were designed like Hive, most everyone over the age of 35 would be a multi-millionaire. Instead, we went to work in a world that paid in a linear fashion. Do the work this week, get the paycheck; start from scratch next week to get the same pay. Some are fortunate enough to put a little money aside to garner a return yet most do not.
Finally, Hive offers many different ways to earn $HIVE. Obviously, posting, commenting, and upvoting is the primary way. However, there are many others. We are seeing gaming start to emerge on this blockchain. People can sell stuff on Steembay. There are contests for people to enter. We even have a Hive basic income for those who decide to participate. For those who are inclined in this area, the blockchain is open to anyone creating an application that could take off.
It is claimed that Albert Einstein once declared compound interest to be βthe most powerful force in the universe.β. Whether he actually made the statement or it is urban legend matters little. The fact that it could be attributed to one of the greatest scientific minds makes a lot of sense. The power behind compounding is incredible.
The challenge with it is that we are not familiar with it. As I stated, most of us do not enjoy the power of compounding in our everyday lives (when we do, it is usually debt). This is one of the designs, I believe, of the banker system. Since we do not apply it, it is a foreign concept to us meaning we do not understand the secret.
So what is the secret to compounding? TIME
For compounding to fully be effective, time is required. Many will nod their heads understanding intellectually. However, since we are conditioned to seek instant gratification, few are willing to allow time to work its magic. Instead, many approach Hive with the get rich quick mindset. This leads to frustration and one leaving the blockchain.
Isn't it amazing? People have one of the greatest compounding machines at their finger tips yet they are too impatient to put it to use. Again, this comes as no surprise since we are reared in the banker run system.
My suggestion is to stop looking at Hive like you do other things in your life. This ecosystem was designed on a different plane than we are accustomed to. Unlike the scarcity world, Hive is offering abundance to anyone who wants it. Now, before you start pointing to whales, the unfairness of the system and other statements like that (all of which I repeatedly negate with the numbers month after month), understand it is not an overnight process. One is not going to get abundance from this blockchain in 30 days.
It will take time because that is what is required to activate the compounding effect. Without time, there is no compounding.
Therefore, one needs to be dedicated and consistent. Posting haphazardly will not do it. Coming on and expecting everyone to run to you is not going to take place either. One is going to have to get involved.
By doing that, one's personal numbers will grow. We also will then enjoy the other factor in all this to take place: the added development. At this point, that is the biggest compounding component there is.
If you found this article to be informative, please give it an upvote and rehive.
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