An explanation why Hive is unlikely a Ponzi scheme to a friend.

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I was trying to explain Hive to a friend this afternoon, thinking I can get him onboard.

As a passionate fan and investor of Hive, I'm often asked whether it's a Ponzi scheme. I can understand why people might have this misconception, so I had to explain to him why it's not.


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I started by giving him a brief overview of what Hive is all about. Briefly, Hive is a decentralized platform where users can create and share content, as well as a blockchain where one can develop applications and services. The Hive token serves as a means of exchange and a store of value within the platform, and its value is derived from the demand for its use in these activities.

At first glance, it might seem like the value of the Hive token is solely dependent on new investors buying in. After all, the token's price has gone up significantly and there had also been dumps. It's not hard to see why someone might assume that it's a pyramid scheme.

But that's simply not the case. The value of Hive is derived from the usefulness and adoption of the platform, not just from new investors buying in. As more people use Hive to create and share content, as well as develop applications and services, the demand for the Hive token increases. This is what's driving the price up, not just new investors buying in.

Another thing that sets Hive apart from Ponzi schemes is the community's dedication to developing and improving the platform. There are a variety of projects and use cases being developed on Hive, like projects on layer-2 Hive-Engine, video services like SPK network, and games Slinterlands, just to name a few. These projects add value to the platform and legitimize the investment in Hive. I didn't even tell him about the 20% annual interest for saving HBD!

I also told him that Hive operates on a decentralized blockchain, which means that there's no central authority controlling the platform or the token's value. Instead, the value is determined by the collective actions of its users, which makes it much harder for Hive to be a Ponzi scheme. He was unfazed!

In summary, while it's understandable why some people might think that Hive is a Ponzi scheme, it's simply not true. The value of Hive is derived from the usefulness and adoption of the platform, as well as the community's dedication to developing and improving it. As long as these factors remain strong, I'm confident that Hive will continue to be a valuable investment opportunity.

Of course, this is not financial advice of any sort. Please do your own due diligence before investing.

Posted Using LeoFinance Beta

Posted Using LeoFinance Beta



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Nicely done and it is far away from a Ponzi scheme as it is very decentralized and it has so many use cases. And quite a few serious projects are developed here, only to think of the Spk.Network effects when it will start rolling out as a truly decentralized video streaming platform.

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