Can Hive Help Usher In the Age of Abundance?

We are seeing a massive transformation in the digital world. Technology, the catalyst for societal improvement, is racing ahead. While many fear the outcome, buying into Hollywood gloom and doom, those who step back see how we are about to embark upon a period that fosters an incredible amount of change.

While this will cause upheaval, as disruption always does, we end up progressing further as a result of the changes.

Does anyone believe that we were better off with Blockbuster Video as compared to Netflix? How about the idea of taking film to be developed versus digital cameras?

Innovation is what moves society forward. In the past, this was slow since much of it was relegated to the physical realm. Today, with the digital world being so important, we understand how this is accelerated.

The term demonetization enters into the picture. Technology, by its nature is deflationary. This means that a number of countermoves must be made to offset this. It is questionable whether society will take these steps. However, with cryptocurrency and digital assets, there is a chance.

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Economic Impact

Technology has a tendency to push things to the zero (or near zero) level. If we look at computing, probably at the center of most discussions, the cost is pennies compared to a number of decades ago. When we look at the cost per performance, we are talking about basically free.

This is commonplace especially with the digital world. It is going to accelerate as our machines, whether robots or artificial intelligence, enter the production process in a larger way. We already see generative AI shorten the development time in many industries. Do we believe this is going to suddenly stop? Not likely.

History shows that major technological breakthroughs leave to a massive increase in production. Automation sent human output skyrocketing. While things might have moved around, the ability to meet demand keeps going up.

Here is where the doom and gloomers get it wrong. They believe we will not be able to keep up yet, repeatedly, this is not the case. Take food production. Half a century ago, it was theorized the population would grow to the point where we could not produce enough to feed everyone. What happened? The exact opposite. We have an abundance of food compared to the number of mouths to feed. The problem is not production. Starvation still exists because of distribution. It is estimated the US throws away between 20%-25% of the food produced.

Of course, all this takes money.

Here is where the entire conversation can get complicated. Due to technological deflation, to maintain the same standards, more money is required. This is something that gets convoluted with central banks and their propaganda. However, if one follows the impact of deflation, we see where it lands. Labor is the first to be affected, as evidenced by the outsourcing of manufacturing. Those communities collapsed, as incomes dried up. Asset prices plummeted, leaving people with very little.

The counter to this is more money. Of course, in a world of limitation, this is not the only piece. Money is a tool that has to be coupled with resources, innovation, skills, and entrepreneurship. Minus those, nothing of significance will occur.

Digital Assets

One of the reasons why I am optimistic about the potential of digital assets is because I can see how this fills in where the existing system is going to fail. We know the political rhetoric out there along with ideologies people espouse. We end up with cult-like thinking, something multiplied due to the Internet and social media.

Here is where the question of whether Hive can be part of the solution in ushering in the Age of Abundance?

At present, we are awaiting the development of a smart contract platform. This will open up a host of features, including the ability to tokenize communities. It is something that strikes at the heart of this discussion.

Let us look at this from the productivity standpoint.

What happens if entrepreneurs, the builders of society, have access to the funding required to get their ventures going. In other words, what if we take the venture capital model of Silicon Valley and put it on steroids. Instead of a select few receive enormous sums from firms looking for the major paydays, we have this happening in greater volume in smaller increments?

To me, the answer is clear.

At the same time, I think we are going to face a problem where labor capital, for many, starts to dry up. How will these people sustain themselves? This is where politicians want to enhance their power by offering the giveaways, trying to bribe voters. Unfortunately, dependence upon the government has, throughout history, proven to be a foolish proposition.

Again, we see the solution before us within the crypto-asset realm. When people can start to generate staking income, this opens up a host of different possibilities in terms of income. No longer is the sole dependence upon the fruits of one's labor.

We also have to keep in mind, if looking at this from an income statement perspective, that as the staking income grows, many costs will be coming down as a result of technology.

Capital + Innovation

When innovation meets money, good things can happen. Here is where we see the ability to expand the impact upon society in a big way.

Obviously, with Hive, we are presently dealing with a small ecosystem. However, over time this could change. One of the keys to this is the fact that people can join the network without any resources and start getting a stake. This is unique and something that will likely expand in the future.

We see how many are killing themselves to get a small payout from Elon Musk on X. The introduction of ad revenue sharing motivated many on that platform. Sadly for them, like YouTube, there distribution will see a few getting the bulk of the money.

With Hive, once we have tokenized communities, there will be many different levels of payouts. Here is where the distribution curve is not singular. Instead, an individual could be involved in a few of them at the same time.

This is revolutionary when you think about it. Someone might be a whale in one community and non-existent in another. As they grow in value, different people will be benefitting financially. If this is coupled with financial services, such as lending and financing platforms, we can see how the impact is enhanced even further.

It simply becomes a compounding mechanism.

As more is built, the value of the entirety grows. Here is where we see more resources available which can be utilized to built more into the system.

Rinse and repeat.

Essentially, we are looking at the development of an organic system, which all economies are. Different layers stack upon each other to compound what went before. This can be seen through the network effects although this is not the only mechanism in play.

Hive has the foundation for this. We still have a few pieces missing which are being worked upon. To me, the entire focus needs to be upon building our "town". Many are worried about users when, to keep the analogy, we are still all sleeping in tents.

It is time to build the saloon, hotel, courthouse, and general store. Users want services. This is what businesses have to provide.

Nevertheless, when looking at the future of the Internet, and how networks will become abundant, the idea of offering nothing and getting a host of users is absurd.

If Hive wants to usher in the Age of Abundance, it best bring its "A" game.

Digital platforms will multiply. The question is going to be what generates loyalty in the future. I can assure you it is not going to be based solely on the token since most everything will have that.

Here we get into business building 101.

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