If You Had Your Hive Valuation in Cash
It takes 13 weeks to power down Hive, but what if we were given the option of instantly converting our full asset value into cash and making away with it. I don't like to daydream but I assure you am going somewhere with this.
A lot of us have experienced phenomenal growth on the Hive chain over the last couple of years. From starting at practically nothing for many, some of us counted assets valued at thousands of dollars and counting during the ATHs of December 2022. Even now we still have some crazy valuations in spite of the dip and it is certainly noteworthy.
The 13 week power down period was very much a subject of discussion during the early days of Hive, but these days nearly everyone has come to accept it. Some people even see it as necessary because of its usefulness in tackling spending temptations, and acting as an extra security layer for the average Hive user.
If you had all your Hive stored as liquids and your account is hacked for instance then that is at least the end of such assets, assuming the account can be recovered. If it were subject to the 13 week window then it will likely be remedied before any major damage can occur to such a users account. There is also one big advantage of having this power down window in my opinion.
A Chance to Build
A lag in the conversion of Hive assets to spendable liquids enable us to avoid the pressure of falling for the temptation trap. The temptation trap occurs when an immediate need forces us to look into money that was originally set aside for other purposes in the future.
With the default option set at fending off the trap, many more are likely to take the bait due to solely that reason. When you consider the timeframe it takes to have access to your funds, it would warrant looking for other immediate options and simply not considering the Hive assets as an emergency option, which in turn enables us to stack and save.
I reckon without the lag a lot of people will simply fall to the spur of the moment and spend on that immediate need. The problem is that such emergencies never fully go away, but we'd have lost the capacity to save and compound.
The beauty of Hive is in its accumulation, either by purchase or earning. We are under valued now and could potentially become really big in the future. There's absolutely no reason to short sell ourselves,nor is there any particular rush
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As I recall the original power down period was something outrageous like 54 weeks.
I like the long power down design as it forces people to think long term. 12 weeks isn't really a long power down. It is not even a full quarter.
The alt-coins on Hive-Engine have different power down periods. It is interesting to see how that affects investment in the coins.
The CHARY power down took place in five transactions over a year. Taking a year to power down in an interesting idea. The problem with the CHARY power down is that it took 73 days to get the first payment.
BTW: I was very close to powering down a few hundred HIVE last November. Had I followed my instincts I would have been in a sweet position to capitalize on the market correction.
I decided against powering down. My thought was that one should first achieve one's investment goals; then start the power down. I achieved dolphinhood last month. I am now powering down 10 HIVE a week. It will be interesting to see how my attitude to HIVE changes now that I am actually withdrawing cash.
!WINE
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Grow the stake and create a decent/passive income and there is no need for temptation. I am happy with the power down and don't or haven't even arranged a way out of crypto yet. I will shortly when certain banking cards are available, but there is no rush.
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There is certainly no rush. What I find particularly interesting is how the discipline we develop here on hive can quickly translate to the real World and our personal finances
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There are many lessons learned from Hive and they do filter into real life as they are habits we pick up. Your thinking does change and those decisions should make you wealthier hopefully.
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