RE: The Real Value Of Hive And Why It Has A Future
(Edited)
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Last phrase is confusing.
If Hive can continue to build out, we will see a growth rate that exceeds the costs being paid for all this infrastructure.
Wouldn't the cost of users maintaining a network increase also if user growth increases substantially?
How does growth equal cheaper?
What I thought was expected from most users is that if Hive grows then RCs become needed in large amounts making 'RC Delegation' lucrative and people say that the price of Hive will then rise.
So maybe costs of base layer decreases but then layer 2 enterprise pays a premium which could in effect limit growth.
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The cost of infrastructure is paid by the inflation of Hive. This dilutes the holdings of those with Hive. However, growth is a way this is offset.
When a system grows faster than the inflation rate, it is generating more value for the coin or token. With Hive, if we see a 20% increase in users while inflation is at 7%, then the value is increasing.
The question is whether the market realizes it or not but that is always a different story.
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You didn't actually answer the question of costs to second layer enterprise.
The inflation doesn't grant them 'compensation' from the get go so if RCs become expensive both by rental or due to growth of chain then there definitely will be a premium to participation.