There is a danger at putting your belief that price is reflective of what is going on. Here is an example of how things can be misleading.
We all can see the price of Hive is moving. It is now, as of this writing, at 21 cents. This is up from 12 cents a little over month ago. Here is the chart from Coingecko.
As a percentage, this is a 75% gain.
Obviously for traders, this is a wonderful event. They love volatility and big runs. That is what they depend upon.
Also, people feel happier when the price is appreciating. However, sadly, many seem to need tha to validate their views.
So let me ask you, is Hive suddenly 75% better than it was a month or so ago? Are there 75% more users? Is there 75% more development?
The answer is no to all these questions.
Which brings up the second question: when was the pricing wrong?
Is the price of 21 cents accurate? Or was it 12 cents? Which is it? Or could it be that neither is correct?
Perhaps Hive is truly worth 50 cents each. Or maybe a dollar.
In reality, there is no way to tell. The market does what it wants and sets prices as it sees fit. Sometimes it might be accurate but most often it is awry.
So what happens next?
If Hive runs up to 30 cents, does that mean things are getting better? What about if it goes back down to 10 cents? Is then, the reverse true?
The reality is that the developers on Hive are going to keep plugging along regardless. So will the content creators who are here. Projects will keep rolling out and the Twitter army will keep blasting things out. This will take place even if the price goes up to 30 cents or down to 10.
Matching price to value is one of the hardest things in markets. It is easy to get caught up in the emotion of market pricing. This, however, can lead one astray.
Where will things be in 2 or 3 years? Is the market looking at that, especially one as small as Hive? Does anyone believe that there are any individuals outside of Hive who know what is going on?
The reality is that we are under the radar at the moment. What the pricing mechanism is doing is no reflection upon what is taking place. Whether one thinks that Hive is under priced or over priced does not matter. It is easy to see that Hive is not 75% more valuable than it was 5 weeks ago.
Warren Buffett likes to say, price is what you pay; value is what you get.
It is the same each bull market. People come out of the woodwork when prices are rising only to disappear when things go awry. This is not exclusive to Hive either.
Outside of that, we see infrastructure being developed, applications created, and people actually starting to use more of the ecosystem.
This has been going on since the last bull market ended in spite of most leaving for greener pastures.
So we are at a point where everyone is excited about the price. Some might even feel vindicated.
At this point, thought, it matters little. Those that are building believe there is a much larger future for Hive. Price action is not required to substantiate this viewpoint.
This is the real sign of what the future for Hive holds.
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