I've been running a few different historical data sets lately for Bitcoin and Ethereum. I thought it would be interesting to also throw Hive into that mix, but then I remembered that HIVE Power Up Day (a.k.a. PUD or HPUD) is tomorrow.
Instead of just throwing up the raw numbers for buying HIVE at $10 a day like the BTC and ETH research I did, let's take a look at what a HIVE PUD participant would've earned if they powered up $10 worth of HIVE on the first of every month for the past 12 months:
Note that I used STEEM price data for months prior to April of 2020 (since the first month of PUD for Hive after the fork was on the 1st of April). Because of the clean fork from STEEM and 1-1 airdrop of stake, buying "20" STEEM on the 1st of January still would have yielded the same amount of HIVE post-fork.
Looking at the data, a $10 per month strategy of buying HIVE would have gotten you a total of 725.62 HIVE in exchange for your $120 total spent for an average of 1 HIVE per $0.165 USD.
The current price of HIVE is about $0.225 USD, which means you would be able to sell that 725.62 HIVE that you bought for about $163.27 USD for an ROI (return on investment) of 36.06% (which is also an annualized return of the same number, since this study only goes back 1 year).
Is HIVE A Worthwhile Buy?
It depends on your perspective of HIVE. When you break the data down by the monthly buy of $10 for the Power Up Day's, then you would have made a nice return over the past year.
When you look at the data for daily purchases (as I did for BTC and ETH), then the numbers tell a different story. The STEEM price (since the majority of the data going back 2 years is based on STEEM buys rather than HIVE buys) gradually declined with time.
Many of us speculate that the STEEM price declined steadily over time because Steemit, Inc. was "programmatically selling" STEEM each month to fund their bloated and inefficient enterprise.
Regardless of why STEEM declined over time, it did. When you analyze the price data, it proved to be an unworthy investment as a daily dollar-cost average candidate. While BTC and ETH steadily rose in value over time, STEEM did the opposite. Wild spikes up in price and a steady decline.
On Hive, it does seem like things are different. In price, yes (seeing as how we consistently are valued higher than STEEM) - but also in terms of other factors like no Steemit, Inc. stake to see programmatically sold each month with an open development fund to replace it. More lively projects and communities... more community ownership, better social presence etc.
There's a lot going for Hive that wasn't going for Steem.
With that said, remember what I mentioned about perspective?
The perspective you have when it comes to investing in HIVE matters greatly. If you're the kind of person who's regularly investing in HIVE using a DCA strategy like the $10 a day or even $10 per PUD, you can be extremely successful when you couple that buying with curation, delegation leasing, project building, etc.
You see, Hive is not like other investments nor is it like other blockchains. I view buying HIVE as similar to funding a business prospect. When you add capital into your business, you expect to use that capital to build something that generates more capital or something that generates some sort of other form of value for the business at large.
On Hive, you can buy HIVE, power it up and generate a return on capital from the investment. You can also build a community or curate content or delegate to projects. There are dozens of use cases to choose from, but I believe that HIVE gives a level of control back to the investor.. and that's what we all love in crypto.. right? Control.
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