Hive Spikes: Resist hype, and focus on your personal financial goal!

It is easy to get all excited about the recent Hive spike.

I am already seeing how Hivers are all excited about the green candle that brings Hive close to 60 cents or over it.

Here is the ice-cold water to douse the hype you might be experiencing to help you stay cool-minded!

Image Source

For me, the fear of it slamming down to negate these gains is real. I am not saying that the likelihood of it going down is real. I am saying that the fear I am having is real.

The worst thing is to see it coming down and I hadn't taken profit from this climb.

To that, I say: Resist hype, and focus on your personal financial goal!

Of course, your personal financial goal would be different from mine.

For me, essentially how much will I need to retire? is the guiding question to that personal financial goal bit.

Let's do some clear thinking together. It's an important part of the development of one's crypto thesis.

Eventually, when I retire, assuming with 20 years to live, I need to put my wealth away in a safe haven with a low-interest rate of 2% to survive. So let that rate be the guiding force and I shall think through my personal financial goals for retirement now.

For simplicity's sake, let's just say I have my own property for dwelling and needed $72K per year as living expenses, which is $6K monthly post-retirement. Putting the numbers in this calculator yields the following:

Looking at the withdrawal length of 20 years, I need to save $1,189,000 by the time I retire. That would be my financial goal!

Although this is a rough estimation, working through the personal financial goal gives me something to work towards, which clears up my mind.

Back to Hive, amidst loads of other investments and saving.

I need to figure out how much my Hive investment would contribute to the $1,189,000.

Suppose Hive is taking the 189,000 share of the load.

If I have 189,000 Hive, and if Hive hits $1, I am actually done with Hive. The funds should be saved somewhere safer then.

I have 10K HP now, so that is a long way to go for me to build up to 189,000 HP. From now to that figure, I can either try earning them by posting or curating, or by buying them up through DCA, or by trading. You get the gist.

While this plan and projections are overly simplified, by first deciding on your retirement needs, and then working out a lump sum that you need to acquire, you can figure out a way to get there.

When Hive is assigned a specific amount to occupy within the grand financial goal, one can be more clear-headed about the implications of the rise and fall in its price and the quantity to acquire.

Hopefully, this post gives you some impetus to think more clearly and helps you resist the hype related to Hive price actions, lest you do something you might regret.

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, @graciousvic, @deflacion, @jacoalberts, @young-kedar, @svanbo, @sumotori, @zakludick, @poplar-22 and @hankanon!

What is Hive?

Posted Using LeoFinance ^Beta