Hive: Enough People Wanting Access = Mooning

Markets are interesting animals with minds of their own. This is something that anyone who watched them for any length of time. They go up and then they go down. Often this is done without much reason. Certainly, there are thousands of people telling us why they moved but, in the end, nobody knows.

This is certainly true in cryptocurrency. We see tokens moving for no reason. Low liquidity and the ability to pump is definitely a factor in some cases.

Ultimately, the reasons for things taking off, or crashing, is not relevant. The only thing that matters is understanding that markets can go in both directions.

That said, what is it going to take to get HIVE to take off?

In this article we will discuss the fundamental concept tied to it and how it is rather easy to predict.

Why Buy HIVE

Why do people buy HIVE?

There are a number of reasons for this. People have their own motivations when it comes to anything in markets. However, here are a few common ones:

• speculation
• yield
• governance
• influence over reward pool
• access

The last one is vital.

HIVE is an access token. That means it is required to engage with the network. It is a crucial point to understand.

People buy HIVE to write to the network and access the decentralized database.

This is the case at the most fundamental level.

If you want to engage with the blockchain, staked HIVE in the form of Hive Power is required. This provides resources credits, a non-tradeable token that quantifies all activities at the base layer. In lieu of a transaction fee, one simply makes the investment in the coin, powers up, and is able to interact.

Many like to analyze things from a fundamental level. If we want to remove all market sentiment, hype, and any other antics, here is the most basic premise of HIVE.

Digital Real Estate

We often hear the term digital real estate tossed around. This is the idea of thinking about the digital space similar to how we view real estate in urban area.

To start, we have the idea of scarcity. There is only so much to go around. Instead of the term real estate, we say bandwidth. Either way, it is conveying the same idea.

If we want to access the real estate, we need to be granted access. This means receiving permission to enter. While blockchains are permission-less, there is a fee associated with entry. On Hive, it requires resource credits.

The digital real estate ideas is applicable because, when dealing with Hive, there are only so many transactions available at any given moment. By this, I am not referring to the scaling although that certainly is a factor.

Instead, we are referring to the total amount of Hive Power available at any given moment. This is a factor of the amount of HIVE in circulation. The sum of all the HIVE that is staked translates into a certain level of resource credits.

The means a set amount of operations could be performed.

At present, there are a lot of vacant fields. There is more real estate than is required. The present stake, for the most part, covers all activity with a lot of room to spare.

Hence the demand, at least from this fundamental basis, is low.

How To Get HIVE To Moon

It seems most in cryptocurrency are into mooning. They want whatever token they are holding to skyrocket.

So the question is what will it take for HIVE to do this?

Again, we will leave speculation, pumps, and hype aside. Strictly from a fundamental basis, it is rather simple.

HIVE moons when enough people want access to the database.

This is built into the system. People cannot engage with the chain unless HIVE is staked. Thus, the only parameter is getting people to want to engage with the network.

Here is the multi-billion dollar question: what value does a decentralized network which allows anyone to write and store text have?

Open Database

Keeping the idea of fundamentals, at the core, Hive is data storage. It is decentralized and allows anyone to build databases. At the same time, data posted to the chain can be scraped by any application.

This is very important in the era of artificial intelligence. We saw the reaction of Elon Musk and Twitter over the scraping. Reddit took a different approach but for the same reason.

In truth, databases have enormous value. For now, it seems decentralized, open networks are not given much priority but this could change in the future. We all know where things are heading with the likes of Facebook, Amazon, and Google in control of things.

These are the data warehouses of the world (along with the Chinese counterparts). Centralized entities that amass walls of data which they feed into their different algorithms.

Are we better served by providing an alternative? Hive does that, at least in the realm of text.

When it comes to mooning, the price of the coin, and value, for Hive it really breaks down to who wants access.

If enough people want to store data on the blockchain, then we will see the idea of the digital real estate starting to get scarce. Eventually, the market should reflect this.

Time will tell if this happens.

logo by @st8z

• What is Hive

Posted Using LeoFinance Alpha