#HiveBasics Initiative : Where does the value of HIVE (the token) come from?

in hive-190212 •  2 months ago 

Price of a token is NOT equal to the value of the token.

Price is just one of the many, many indicators of the value of a token, but they are not synonymous terms. Maybe someone has a lot of a specific token and to him, they are of no value and he decides to dump them at a very low price. Now for him to be able to successfully "dump" the tokens, there has to be someone else who sees "value" in that specific token and will buy it at that price. So you see in this example, the price has been manipulated to a lower level, but the "value" is still there in the form that someone else is willing to buy it. So price can be manipulated, value can not.

The value comes from the fact that people believe in the token. The community is what gives Value to the HIVE token. There is a demand for the token. People are willing to have it, people want to have it. That's what drives value in the most basic terms.

But what we really need to address is, why do people have demand for the HIVE token?

There can be many reasons why people have demand for something. I'll talk about two reasons that increases MY demand for HIVE tokens, that give value to the HIVE tokens to me!

Social Media Has Become an Inseparable Part of our Lives


Like it or not, social media is here to stay. Facebook, instagram, youtube, twitter. Social media usage has exploded in the last decade and continued to grow ever since. And there are no signs of people moving away from using social media in the foreseeable future. It's only a matter of time before people start to realize that the time they spend creating content for these social media platforms are not free. Everything they create has Monetary value.


And HIVE is by far the leading blockchain based social media platform that lets people earn from their content.


The people who don't know about monetizing their content and blockchain technology and such, they probably don't even know what HIVE is yet, let alone if it's the best. But WE, the early adopters of the blockchain based social media, we know the ins and outs of this space and we have good reasons to believe HIVE to be the best. We are confident that HIVE will be the platform of choice when people begin to move from traditional social media and WEB 2.0 to blockchain based social media and WEB 3.0. We wanna hold as much HIVE as we possibly can, which will become the currency of Social Media! The more HIVE tokens we have, the more HIVE POWER we have, the more the influence we'll have here when people start moving over in masses, which they will. I am 100% sure about that. We wanna be among the top influences when that happens!

This demand that we have of having more HIVE tokens is what gives the token value and the more number of individuals that start to see the potential here, the more value the token will have!


Means of Transaction


The second thing that has increased the demand for HIVE token is the insane transaction benefits.

People always need to transfer money from one to another. The traditional way to do this has been central banks for centuries. But as we are starting to see what's wrong with the central banking systems, people have slowly started to move away from the banks to cryptocurrency as means of money transfer. The most widely known ones are probably Bitcoin and Ethereum and we all know how slow transactions can be on most of these chains. Not to mention the high transaction fees. Gas fees were almost $30 on the ETH blockchain last week! This is where HIVE trumps the bigger names. Transactions take less than 5 seconds to complete, and are FREE on the HIVE Blockchain. This makes money transfer as smooth as it has ever been.

So as long as there is a need to transfer money, the native token of the HIVE blockchain, HIVE, will always have demand, and Value.

This is not just word of mouth. To back what I've just said about transaction advantage I have solid evidence to support my statement. My country, Bangladesh is not the most technologically advanced country in the world. But even here we have already started doing transactions via HIVE, albeit unofficially! So much so that the @bdcommunity has even set up it's own exchange known as the BDEXCHANGE to facilitate these transactions and make them safe for both parties.

And because such a service exists, it has become easier for many people to actually use HIVE in their daily lives. This gives the users from Bangladesh a way where someone is willing to pay them in fiat currency in exchange of their HIVE tokens. This drives the demand for people wanting to have more of these HIVE tokens. The demand provides the incentive to produce more quality content or spend more time curating good contents (or any of the many ways you can earn HIVE), which overall creates more transaction on the HIVE blockchain and starts to rank it higher.

That right there is where a lot of the value of the HIVE Tokens are coming from for me!

Join the #hivebasics initiative here and contribute your answer!


BDCommunity Witness


@zaku and @reazuliqbal has been the mind and soul behind the BDVoter project and many of you have received some great support for good content from BDV. The bros have been working tirelessly to make onboarding new users onto the HIVE platform by curating from all over the platform! And now they have set up the BDCommunity Witness.

I feel proud that I have been appointed as an ambassador for the BDCommunity!

Do consider giving the BDCommunity you witness vote via Hivesigner or you could also go to the Peakd witness page and search manually by typing in BDCommunity

The BDC has also been collecting donations for helping the poor people of Bangladesh in this time of crisis. Do check out the post Here and donate STEEM/SBD/HIVE/HBD to @bdcommunity

That's all from me for now!

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Until Next Time!

Peace!

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informative post. i am following your only for this kind of post about hive basic.

great to learn.
thank you for your kindness

Glad you learned something from my post :)