Paying for an Online Subscription with HIVE - WE create the Value of $HIVE
Hundreds of years ago we had barter system where you would exchange things of similar value. This is important, what defined value? It was determined by the two people involved in the exchange. Now, I didn't live 500 years ago. But I have bartered, we all have at some point whether we realized or not.
Couple of days ago, I pulled a Gold Foil Bortus from an untamed pack, a card I dislike and has no value to me. But that doesn't make it valueless. There was someone else who had value for it, in turn he had something which I valued and we determined what would be a fair trade. I decided I wanted a Dark ha'on, a Scale Doctor and 3 Spark Pixies. We both agreed this was fair, and I got what I valued, he got what he valued. Notice how we decided the value of the traded items.
But what if I didn't want the cards he had? I want for example, a Hand sanitizer for my Gold Foil Bortus. What happens then? Maybe the guy who has the hand sanitizer doesn't need my GF bortus. He wants a cheese burger. We have a problem. All the commodities we want exist, but we don't have a deal as we don't possess what the other person values. We could still work this trade out, but that would become an unnecessarily increased number of steps.
To eliminate this checkmate, currencies were introduced. Currencies were not meant to replace barter system, only facilitate it. But that didn't work out did it! The core fundamental of the barter system, the involved parties decide the value of the traded commodities, became a mere illusion. With currencies, we are now only led to believe that we still decide the value while the central authorities go brrrrr with the printing machine. It's a broken system and we know it. Dread it. Run from it. Destiny still arrives.
The point I'm trying to make is, despite the centralization of currencies, we can and are still determining value. Everything is money as long as there is someone who sees value in it. My gold foil bortus became money when someone had the value for it. The dark Ha'on, scale doctor and spark, pixies became money when I decided to accept it as payment for my Bortus.
Money is any item or verifiable record that is generally accepted as payment for goods and services
Now let's take this a step further, off the blockchain games to real life commodities. I am a doctor and for us to work in a different country, we have to give crazy License exams. In the UK for example, I could give either PLAB or MRCP. For these exams there are tons of resources, some of which are better than others. Some are considered equivalent to a holy book. Passmedicine falls in the final category.
As you can see above, a 6 months subscription costs £40. I don't have an international credit/debit card. Neither does my dad. I could find someone with an international card, but most people here have the USD as the only international currency activated for their credit cards. But my exam is nearing and I needed this question bank ASAP.
I had enough liquid HIVE sitting in my wallet. Cryptocurrency is about the only internationally transferable form of asset I own at the moment.
I decided to ask my friend @raymondspeaks, who lives in the UK whether he would be able to make a payment in GBP. In exchange I would pay him the equivalent in HIVE. He willingly agreed to accept hive as the payment.
And right there, WE created value for #HIVE. WE determined that $HIVE is our money for this transaction. And voila, My Passmedicine Account Subscription is now active for 6 months!
HIVE is real money as long as there are people who value it. That number is increasing everyday. I made most of my HIVE by blogging. If I can, why not you? With HIVE we have the chance to make a system where we determine the value, work. Barter 3.0 if you will!
BDCommunity Witness
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You hit upon the essence of everything. Value is only what we determine it is. What is a house worth? It is what the buyer and seller are willing to value it at. Yes they use comps and all that but at the end of the day, it is what we both agree to.
The same is true for any asset. Why is one baseball care worth more than another? Scarcity might be one reason but not the only one. In the end, something is paid for because it is valued more, by the individual, than what is being parted.
Right now, the NY Mets are for sale and it is believed they will be going for more than $2 billion. This is a team losing $40-$60 million annually and, I believe, baseball (along with all sports) has a murky future. Yet people are willing to pay it.
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People are willing to pay for the NY Mets, because they are making a bet that the current situation is temporary, so that may might look for a relative bargain. The expectation is when the normalcy comes back, that asset will be worth more.
Several month back, it was widely mentioned that Crude Oil prices are trading negative. Just line many things, it was a partial truth. Spot crude never actually traded negative, that is impossible. What 'traded' negative (as this is also in theory) was a particular crude oil futures contract called /CLK20. The reason I said 'in theory' is because I was trading crude that day, and I couldn't buy it (I tried desperately to buy), and I trade in one of most expensive trading system known to man outside the exchanges. And I couldn't buy the 'negative' CL future. This is simply because 'negative money' is unknown. I did able to buy /CL the following trading day though, using positive money :) and I made substantial amount of money trading it. Why? Because I saw an anomaly and I capitalize on it.
There is always value in the markets when there is an anomaly. This has been true before, today, and will be true in future.
Yes, Scarcity does play a role. definitely. But that is also tied in with demand. A product that someone already values, if it becomes scarce, its demand to that person might increase. But someone who doesn't value the product to begin with, scarcity of it is unlikely to increase his demand for it.
Right there is the freedom of people to decide value. It might be a failing business, it might be losing money, but as long as someone sees value in it, it is worth something. This part is actually already very well explained by Azircon dada in the reply to this comment.
Posted Using LeoFinance
This is interesting and realistic at the same time, doc. What you called 'barter system' in your card exchange, I might want to call an 'asset swap', which is nothing but a more fancy name used in the financial world, where people can charge exorbitant about of money just because they can use such terms :)
Regarding the subscription and your ability to pay by a p2p transfer is perhaps the new world order of financial transaction of breaking barrier. I am uncertain about the true 'legality' of the system, but I am excited about the potential regarding the 'flow of wealth' and goods and services. In the modern, 'terminal economy' this is the direction we should be heading with the hive ecosystem.
This cloud of uncertainty will stay for the foreseeable future Dada. I could have also used a central authority to complete this transaction, by either paying using an international card, or paying Ray via bank transfer, both of which involves a hefty "fee" which the central authorities missed out on. I think this will remain their driving propaganda to keep the legality of such transfers under scrutiny.
I have no doubt about it. HIVE is the perfect store of value and medium of exchange.
... as well as being the community's monitized means of communication.
Bona fide money truly in the hands of its owners, and so much more on top.
Wow!
And thanks to that same community of owners. 😎
The zero transaction fee is an absolute wonder! In a world where we pay ridiculously high fees when transferring money internationally via central authorities, is a breath of fresh air!
excellent post here in my country venezuela we live making exchanges, this due to the lack of cash. definitely hive is an alternative for many
This is new information to me. I have heard of the struggles in Venezuela from a few people I have interacted with here, but I had no idea the lack of cash reached to such severe extent.
#hive is definitely an alternative, so are cryptocurrencies in general. HIVE has the advantage of giving people the entry to cryptocurrency without the need for any capital investment.
Hi @simplifylife, your post has been upvoted by @bdcommunity courtesy of @rehan12!
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It also felt good being able to help whilst at the same time increasing my hive holdings :)
A win-win to say the least ;)