Price Does Not Reflect Value
We all know something funky took place yesterday with the price of HIVE. The token dropped more than 50% in a very short period of time. After some research, people concluded that it was the Korean Exchange Upbit that was doing the selling.
It is also not a secret that Justin Sun wants the price of STEEM higher than HIVE. That could have been part of the motivation behind freezing some of the larger accounts. Now, they are locked up and cannot power down. This removes the chance of 17 million STEEM hitting the open market.
While we all look at price, it is often reflective of very little. There is this age old adage:
Those who focus upon price increases are simply looking to pump. This is often the source of manipulation which is common in markets. Bigger fish can often use different tactics to create buying or selling pressure. Of course, ultimately, with little behind it, reversals happen in short order. It is the classic pump and dump.
Value creation is another matter all together. This is where the people "on the ground" are doing the grunt work to make things better. Price often does not reflect this as there is a delay.
Sun is focused upon price. He wants to pump STEEM up, if for no other reason than to prove to everyone it is better than Hive. Once again, that tells very little of the story.
To contrast, we take a look at the post put up by @hiveio. This laid out some of the events that are taking place with the developers. Unlike in the past where the development of the blockchain was done by paid Steemit Inc employees, that task now falls to the community. There are developers who are stepping up to handle it.
The post lays out some of the decisions made and some of the future plans.
What is also very interesting is the fact that there was a bi-weekly call that the developers had. In keeping with the idea of transparency, all can listen to it on YouTube.
Anyone going through the video can see the number of developers who are involved in the different facets of the operation. This is truly spread out with many people taking on the roles that were handled by Steemit Inc.
One case is point was when Dan of Blocktrades mentioned that he did not want to spend a lot of time on a particular piece of software because they are looking at changing it out to something more standardized. This is a key point. In the world of software, something that was "in" 3 or 4 years ago might be passe today. With Steemit Inc operating on a shoestring budget, headed by one who exhibited ADD tendencies, there is a good chance some of the infrastructure needs changing.
Of course, the base layer is only part of the story. The other parts of the network are the applications built on top along with the individuals who are using those applications. This is where the term "network" can take on many meaning (i.e. involve many different layers).
We are only in the 3rd week of Hive. Each of us can help to bring value to the Hive network in our individual way. The success of Hive depends upon activity. Here again, we see this applying to many facets. The activity of the developers is only one piece of the puzzle. It is up to the rest of us to fill-in the other areas.
Warren Buffett is a long-term thinker. Focusing upon price is often a short run endeavor. Prices can more very rapidly. Value, on the other hand, is created over time. This is something that Buffett knows well. It is amazing how many years it takes to be an "overnight sensation".
While we all like higher prices, unless one is looking to buy, ultimately it is value we seek. The lessons from 2017 should still be fresh in everyone's mind. Those projects with little to no value end up fading away.
If you found this article informative, please give an upvote and rehive.
Time to buy now.
But it also ALWAYS is time to build value!
Absolutely @master-set.
This should be pinned to the top of every page on Hive.
The value is already built, but what good is the value, if no one is seeing it? There are many talented, yet ignored or overlooked artists both on the Steem blockchain and on the Hive blockchain, because most of the people are focusing on their own posts, and they do not care about other people's posts. There are too many content creators, but only a few content consumers. This is not whining, nor crying. Only fact.
Well, hopefully, some Korean investors are getting some nice cheap $Hive. <3
This is true. A lot of people are earning cents with their hard work both on the Steem blockchain and on the Hive blockchain. And people sometimes neglect the things that they should value the most. Interaction. Nowadays the real human comments are rare both on the Steem and on the Hive blockchain. Nowadays the average number of comments per post is only 1-2 both on the Steem blockchain and on the Hive blockchain, and the real human interaction is so rare that most of these comments are bot comments. I am not whining, nor crying. I am just/only stating a fact. You can see the statistics: Daily Hive Stats Report - Tuesday, April 7, 2020.
That is looking at Steem and, now, Hive as only a blogging platform. There are many use cases that will come out of this. In the end, blogging will be probably the smallest percentage of activities.
Might I suggest making future posts based on communities. Doing so would provide those who share similar interests to learn about and enjoy your content. One runs the risk of posts disappearing into a sinkhole by posting outside of communities. Best of luck.
I actually find that dump quite encouraging... or rather the gradual buy back that happened in the hours that followed.
This probably means that with so many of us on another 11 weeks of Powering Down Steem the same thing will happen the next time they dump some more of their 20 million odd Hive.
I didn't realise they were posting those meetings on YouTube. I probably won't give it a listen, but it's nice to know!
There will be a lot of price dips in HIVE in the next 3-4 months until the steem puppets sold their HIVE. This should not surprise anyone. It just means cheap HIVE in the right hands.
The impulse wave will only start once the big HIVE haters sold their stake, so keep that in mind. We will have to wait possibly a long time before price kicks off.
That is totally fine for me, but not easy for people who want fast gains.
Forget fast gains atm. Unless you have stacked up some BTC.
I have a feeling you are right. It will take a while before we see take off in the price.
We are going to have to add a lot more features to what is on here while seeing a lot of promotion of the apps.
It will take a while to get things on the radar beyond the Hive-Steem rift.
It was a co-ordinated dump
I don't think that it is accurate to say that UpBit is selling hive. The exchange opened up the withdrawals of Hive yesterday but they did not setup trading pairs for the coin. If you look at the amounts being transfered it is pretty obvious that the money is being sent in quantities that are consistent with individual customers sending their funds to exchanges where they can sell.
Since UpBit is a korean exchange and we know that I big chunk of that community was excluded from the Hive airdrop it makes sense that they would dump the coin. We should expect more dumping when other exchanges with a strong korean prescence open up withdrawls for Hive.
At least in the following 13 weeks people who do not want to adopt Hive will power down and sell their tokens, we must get used to a low hive price for a few months,
But aside I see another problem in the medium term, Justin and his friends from the exchanges have a lot of money that they could with bots, keeping the price below steem if they wish.
It would be necessary to find the way to try to attract investors in hive that balances the situation. But they want fast money and it would not be beneficial in the long term.
We would have to wait for a base price and in a few months, the same community will be investing in hive to maintain a sustained rising price.
Yes, value is the operative word here. And as you have convincingly argued, building value takes time. What is important for Hive is that its value proposition must be clearly communicated and to the widest possible audience. This can spur significant organic growth and can increase the size of the pie so that everyone here has the possibility of getting a larger slice thereof.
been considering.. nothing is private in China..
so that means we are actually facing off with ccp.
I enjoyed the post because I agree that longterm this community and it's token should do well. I like the Buffet quotes, the first
is one of my favorites. The other one
is new to me, or I have forgotten it, but enjoyed it very much.
Thanks