Hive has billions of virtual valuation
What is often not given attention is the fact that Hive runs a dual token system, but unlike other blockchain infrastructures, Hive's token system is much more flexible, especially since the long waited network upgrade that added another layer of utility to the Hive ecosystem, which since, has made us look at the network's products differently.
We've speculated a lot of things following these upgrades, that includes the network value of RCs as it becomes a much more relevant piece of the ecosystem and with this we can see how Hive could virtually hold several unseen billions of value.
Cost of building
Surely, no one network can ensure a long term lowered cost of operating or building to start, this is because there are many factors that come into play. However, with Hive, we can see how the system is more robust and friendly to developers and users via its dual token design which promotes sustainability over draining of the ecosystem.
Resource Credits ability to replenish is a mechanism for sustainability, it practically lowers cost and promotes long term hodling and building, while in reality the cost of building may increase or decrease based on the market price value of Hive, for hodlers, the cost price never actually changes and what's more interesting is that they never have to pay again, so frankly, this ecosystem presents itself as a technology to lead the masses and stands being widely copied.
That said, paying close attention to the relationship between Hive and resource credits enables us to see for ourselves the value that comes from building on Hive. In the past, there weren't many business front use cases for these tokens that would promote building, but with the release of RC delegation, a new layer of earning is being introduced, one that businesses can use to offset cost of operations and also another layer of revenue.
How?
Virtualize a financial network, probably a custodian or anything, built on the Hive blockchain, facilitating millions of daily transactions, with high deposits for a long period of time.
Being able to develop products that attract these high investments becomes a huge business merits as the platform can leverage the value of RCs to regenerate income without even having to sell off the tokens earned.
Resource Credits delegations become a medium of earning income with added possibilities to tap from the rewards pool via curating contents on the social side of the ecosystem.
Hive's virtual billions of valuation
The reality of Hive is not what many not in the system can understand, this is why we need to sometimes ignore the current prices and market cap, because frankly, the network is worth more because of its design.
Take this, in order to operate limitlessly on Hive blockchain, one needs to stake Hive. Now, the actual reason for staking is to earn a network token called "resource credits". These tokens are in billions, trillions or perhaps even more? And they serve as the fuels or gas for every activity carried out therein.
The design seems simple and complex at the same time, but what we often miss is that resource credits can be "priced". We often discussed the cost of resource credits going up, the several analysis concerning this focused more on blockchain level details without considering the tied token - Hive!
The cost of RCs are directly tied to Hive token, so if Hive goes up in price, RCs does likewise, this is where the virtual valuation comes in. Hive at $100 effortlessly places our market cap above $30 billion, what people see is just that, but as users of this ecosystem, we should understand that we have several extra billions backing this shit and that comes from resource credits(RCs), how?
Simply, this is proportionate to the price value of Hive. When Hive is on the upside, building and operation cost is increased, at current times, being able to make a ton from RCs may not be possible, but with increased Hive price value, we can easily see the inflow.
Using a $100 per Hive unit to draw this out, it is clearly on a high cost for anyone to deploy as much as $10,000 just to be able to make social posts, as we know, about 100 Hive is needed to attain a level of increased ability to operate.
So buying RCs becomes the alternative. Although any currency may be used, it's inevitable that Hive will be on the higher side, with HBD probably. This transaction points us to the fact that Hive is virtually worth more, depending on the "average" selling price of resource credits relative to current market value of Hive token. These merits together gives us an overview of Hive virtual network value.
At the time, it's not what everyone knows, but at some point, holding as much Hive could become a retirement investment.
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