In my last article, I talked about the silvergate issue and financial institutions are interwoven and share similar destinies, be they crypto related or more traditionally focused. What I missed out though, was on one unique property that perhaps distinguishes viable from non viable investments.

It is quite remarkable for a company to recover having gone under, as this is not a feat that many can boast of. Liquidity issues are often permanent, and even if they recover it is usually at the expense of heavy losses on the part of investors. It usually takes fresh funds and maybe a fresh focus to record the kind of recovery that we seek.

As an investor it is imperative that we protect our funds at all cost. The higher the exposure to risk the more apprehensive we become at the face of a likely loss. It is perhaps why there is a lot of skepticism when it comes to support for a new innovation or project when something of similar nature fails. If we knew there is the likelihood of a recovery from a Seemingly failing project, perhaps we would be more willing to invest long term.

I think the crypto verse has an edge in this regard over the traditional space. Sure, there are crypto projects whose failures lead to permanent loss of investor funds and confidence, but there are also others that inspire the opposite. When dips come and there is the confidence of a recovery, there is a feeling of relaxation and hope even in the face of anticipated loss. Most traditional investments don't have that luxury, and investors funds are perpetually at risk.

Take for instance Bitcoin and the die hard maximalists. I have never seen more confident investors that maximalists, even though I have my criticisms of Bitcoin supremacists. Yet their loyalty is something admirable that even at the lowest lows, there are perpetual optimists in Bitcoin. So far, we have had good reason to believe the validity of this claim as Bitcoin continues to follow the trend of recovery.

Hive is of course no different, as this was very prominent when we fell into $0.11 territory. Understandably, a lot of people did have doubts about the long term foundation of the project, but it has since proved its mettle. Hive is even more interesting than Bitcoin because we have far more to prove with a lot less audience. In order to get noticed, we definitely needed to work more on the projects value and marketing which has greatly improved the long term prospects of the project.

Conclusion

In all my rambling, the important point I want to highlight is that the ability of a project to protect our funds in the face of trails or a failing in the project. I think crypto is more positioned in this regard than the traditional space, and I think long term value plays an important role in being able to identify this.