Hive as a global financial network - The benefits custodian services like banks would have to utilize Hive
Looking at things with a narrow mind can really hurt the realities and value that should have otherwise been seen and developed on, this is how I feel about how many perceive the utility of blockchains to set up businesses - sad picture, but on a grand scale, way more can be achieved value-wise just by integrating or building with blockchain technology.
Sometimes I have the strong feeling that "banking" will, even in the future have a great number of centralized networks of operations, but of course, it's really subject to industry demand, however, the fact that "product deployment" can change where people wish to put their money - for the good of it, shows that many centralized projects will emerge on the blockchain - and it's really not a bad thing!
Hive - The Business Benefits
Using hive as a "behind the scene" value-generating network to deploy business models, products, or investment contracts can prove powerful in the long run.
We all know that hold fiat in banks pays 2% and commonly, people lose about 6% in reality, so, sad truth, but it is what it is.
If banks are to take a different approach on where to place a percentage of their deposit inflow, which in this case, HBD serves as a viable option for low-risk but profitable venture, the institution would not only be able to keep growing its user's balance by 2% but also earn themselves a whopping 18% on all deposits.
But that's just one side benefits
It's a no-brainer that the value they can extract has to come first as it's a for-profit organization, and whilst not issuing loans with all cash in-flow, some other mechanism has to be deployed to ensure that "money isn't idle".
The benefits of HBD hereon cover the inflation impact from the dollar side and issue more value for a deposit, ensuring that the long-term investment overview has a "profit" ring to it.
The amazing thing is that these integrations may not necessarily be open to the depositors, I mean it has never really been in the past anyways. So this gives the banking institutions more flexibility to deploy deceptive -
- Low-Risk products
- Medium Risk products
- High Risk products
While all products in reality have equal risk structures(HBD savings). With different "interest rates," a fee structure could likewise be deployed to ensure the banking system scoops up more value than it's giving for management and operations and also, the interest payment.
The ultimate benefit is that all products are subject to low risk, but users are made to think there's a difference while being lured to advance to high products with larger capitals to make the fee charged worth it at the end of the day as a 5% interest on $1000 compared to $1,000,000 shows a great difference.
Raising the margins on minimum investment amounts inevitably makes it more friendly to large industry pockets, and forces the underdogs to play with the low contracts with lower interest amounts/fees while the bank really earns more and more of the value pie.
If only they knew!
Thank you and please leave a comment, your thoughts matter to me
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That is the concept behind the Hive Financial Network. We are looking to build a lot of decentralized financial features.
In a couple years, people will be amazed how much different Hive is.
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Interesting concept really, you know this article from a fellow leo author covering a concept of a "spend and save" mechanism integrated into hive, like the recurring transfers would be an addition to the hive financial network.
Not much of an "investment concept" but it sure promotes holding HBD in my opinion.
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Dear @badbitch,
May I ask you to review and support the new proposal (https://peakd.com/me/proposals/240) so I can continue to improve and maintain this service?
You can support the new proposal (#240) on Peakd, Ecency, Hive.blog or using HiveSigner.
Thank you!
Done.
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Thank you for your support @badbitch, really appreciate it! 👍