Hive as a microcosm of the greater crypto space: Drawing parallels and positioning to profit

I used to consume crypto news from YouTube, perhaps like most people do. The buzz during the bull market on those videos was always about what to buy in response to BTC price movements. Buy BNB. Buy SOL. Buy ETH… Sell AAVE.. Buy/Sell shitcoins etc.

The only useful thing I learned is to discern the major caps from the small caps, and understanding their behavior helped me to allocate my investment better. Basically, to mitigate risk, more on the relatively stable BTC, and some on Ethereum, and even less on altcoins, while keeping some gunpowder to deploy in a dip.

I would say I am a reformed crypto bro after a year in Hive: being nonchalant about the price movements of these tokens listed on coinmarketcap. Even less bothered by innovations that happens on the altcoin markets.

Instead, I am engaged in the Hive ecosystem more.

To me, Hive blockchain is probably enough cherry to bite on to catch the blockchain revolution.

Hive is the blockchain universe to me!

Mainly because I ain’t got a deep pocket to invest in so many projects outside of Hive that I can’t follow closely. Seriously, there is so much happening in Hive, the Hive playground to consume my time now. Occasionally if I find anything interesting outside of Hive, I would still scoop up some. But rarely.

If there is anything I can take away from the greater crypto market and my time getting fooled by shitcoins on YouTube, it is to draw parallel.

Here we go!

Arguably, BTC form the base layer of value storage in the crypto space. The same could be said about Hive when thinking about the Hive ecosystem. The decentralised and non-VC support nature of Hive resembles BTC. A rock solid stash of Hive, powered up, bestow stability and utility for each users and for the ecosystem. Much like what BTC does to other altcoins, or shitcoins.

Next, I begin to see Hive-Engine as being the parallel of Ethereum where projects are built on. There are some many Hive-Engine tokens now and they remind me of the projects that resides on Ethereum, such as the many ERC-20 tokens. With that, perhaps we can think of LEO potentially as a solid player like AAVE in the ERC-20 ecosystem, serving a niche function. There are other examples.

What is perhaps also noteworthy in Hive is that tokens are traded at the Hive-Engine market directly. Much like how ERC-20 tokens are traded on the Ethereum DEFI layer.

This makes me wonder… am I sufficiently invested in the Hive-Engine WORKERBEE? Presumably the token responsible for keeping Hive-Engine operational, much like the Ethereum of the greater crypto world. If Ethereum holds a special place in the crypto world, can we find the similar importance in WORKERBEE? I bought some recently to stake it. I am thinking about getting more.

To be honest, am not especially knowledgeable about WORKERBEE, so any corrections by others would be greatly appreciated.

Then there is also other second layer solution like dlux. There are also projects building on it, e.g, LARYNX. Maybe they can be viewed as the alternative BSC, SOL, ZIL chains to ETH. Worth looking at, but I would consider their potential network effects the same way things are happening to the greater crypto space.

In conclusion, if we can draw some parallel between the greater crypto market and Hive, appreciating Hive ecosystem as a microcosm could help us predict what could unfold in Hive. This can help us in our positioning of investment to profit in the future.

For example, I might aim for 20% liquid HBD, 40% Hive, 15% WORKERBEE, 10% on quality Hive-Engine tokens like LEO, and the rest on speculative tokens. If the Hive ecosystem matures and follow the path of the greater crypto market, this could be a safer yet growing kind of allocation. Of course, we can’t rule out the possibility of bad actors like SBF and FTX manifesting in Hive. Be sure to guard against the evil pump and dump tokens in Hive ecosystem too!

P/S: This is not financial advice, and please do your own due diligence before investing.

If you read this far... and if you are a like-minded Hiver who is on the path to learning more about Hive and crypto investing, and if you like to be tagged when I write such posts, I welcome you to leave a comment below and let me know. We can form an alliance to support each other's growth.

You might be interested in this post, @jacoalberts, @young-kedar, @svanbo and @hankanon!

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