Is Hive's Future Monaco Or China?

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(Edited)

When we look at the highest per capita GDP countries in the world, we see Monaco at the top of the list. This small country registers over $173,000 per citizen. Obviously, with only 36,000 residents, it is a miniscule player on the world stage. Nevertheless, when it comes to wealth, the country is the envy of most of the world.

Looking at China provides a much different story. The world's second largest economy certainly is the major success story over the last 40 years. With a GDP of over $14 trillion, it is a global player. It does that, however, with around 1.3 billion people. The world's most populous country, on a gdp-per-capita basis, comes in at 79th according to the IMF. China's number is just over $14,000 per individual.

It is easy to picture the difference in living standards between the two countries. We have to keep in mid that Monaco is able to 12.25 times the GDP per individual as compared to China. Let us look at the cost of living:

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Source

As we can see, the cost of living is not 12 times that of China in Monaco. In fact, it is much less. This highlights the major differences between the two countries.

Of course, we could focus upon the monthly salary. This does not show such a stark contrast. However, when it comes to a nation like Monaco, salary is only a small piece of the puzzle. This is something that is crucial for cryptocurrency going forward.

Where Does Hive Fit In?

Small and wealthy? Large and relatively poor?

What does Hive's future hold?

This is hard to predict. Nevertheless, we can use this mental model to contrast how things could unfold. A lot of this exercise stems from the idea of what is taking place in terms of production. When we start with the idea of just money, we tend to lose the ability to expand in the ways we are framing here.

As mentioned in cryptocurrency funding real economy, one of the keys will be for this industry to bridge to the rest of the world. At present, we can view it as a bit of an island. Cryptocurrency is basically a self-referential system which keeps feeding itself due to the fact that the number one use case for coins or tokens is swapping them. Ultimately, we need to expand further into the real economy.

This is done by investing in projects that generate a real world return. Here is one of the ways that Hive can become like Monaco.

Nobody is going to deny that Hive is a small fish in the blockchain world. We all know that Bitcoin, Ethereum, EOS, and Cardano get a lot more publicity. This is not to mention the different EVM forks like BSC and Polygon. Hive is a bit player so far.

Of course, the same is true for Monaco. It is small yet wealthy. A lot is generated with relatively few people. A big piece is, naturally, bringing in money from the outside. Hence the concept of investing cryptocurrency into real world projects which ultimately feeds the profits back. Here is where we see a positive feedback loop which automatically generates buy pressure on the coin. If there are periodic payouts of gains from different projects in HIVE or HBD, we can see how this would present a different market mechanism on these coins.

Thus, for now, we have to frame Hive as more like Monaco as compared to China. Bitcoin and Ethereum have a lot more money, numbers that dwarf Hive. Of course, there are a lot more projects tied to them, especially Ethereum. Thus, if we look at the "populations", here, too, Hive is miniscule.

Will this change?

Network Effect

One of the crucial principles in the digital world is the idea of network effects. Here is where we see the notion of users enhancing the value of a network exponentially. The impact is not linear.

Another key factor here is not only users. While this is the end metric that has the effect, development in the form of applications and games is crucial. This is what attracts users.

Historically, we see this realm as a winner take all. With digital applications, there is usually a top dog and then a bunch of runts. We see this with YouTube, Facebook, and Twitter. There are alternatives to those yet they are miniscule in scale. The number of users is next to nothing, as is the value.

In this regard, becoming Monaco might be different. At least that was the case under Web 2.0. Does this, however, change with Web 3.0?

The monetization aspect of things is really interesting. For example, we could have a game that is not very popular in terms of numbers of users. In this regard, the network effect would be minimal. That said, what if this game was very exclusive with high stakes. It might only have a couple hundred players but they are elite in this area. Here we see how the situation could be changed. This game could be enormous value to the ecosystem even though it only has a few users. When we look at value of transactions (and perhaps asset), it is very Monaco-like.

After all, Beverly Hills does not have the most houses yet the real estate is very expensive.

Hive As China

Is there a way for Hive to enjoy the large-scale network effects to become something like China? It is possible naturally. However, the question is what will it take to get there?

So far, Hive is under the radar. Will this always be the case is the question.

For Hive to break out, it is going to require a hook that attracts millions of users. Fortunately, there is one area that is known to achieve this and that is social media. Here we are dealing with an industry that has billions of users.

The key for Hive is that its decentralized database can handle more than just ledger transactions. Data can be stored in the form of social media engagement. This makes it a bit unique.

Is that enough to cross it over to the major player side of the equation? On its own, no. There needs to be a lot of development tied to this. Here is where games and applications enter the picture. If the builders can put forth that which attracts users, then we are dealing with the realistic possibility of the user base radically expanding.

Does this mean a drop in the "gdp" of the ecosystem? Not necessarily. Unlike national economies, productivity can be enhanced by more users. Since the numbers tend to provide move value to what is utilized, we see a much greater economic impact under the monetization of Web 3.0.

Hence, it might not be possible to be China without being Monaco. Following this thought process, each person holding 500 HIVE might be sitting on $10,000 if it was to become a major player on the blockchain stage.

In the end, these analogies are likely to fall in comparison. We are embarking upon something completely different. The valuation models that exist will no longer apply. Nevertheless, since this is what our reference points are, it is good to frame the discussion in ways we all can relate to.

Over time, as the evolution of cryptocurrency and Web 3.0 takes place, we will see how the metrics change.

So what do you think? What is the likely future of Hive?


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34 comments
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Bang, I did it again... I just rehived your post!
Week 120 of my contest just started...you can now check the winners of the previous week!
!BEER
7

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Cool way to compare Hive with two different countries. I believe that Hive being under the radar is great for everyone who is joining the platform now. Still quite early!

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Hive might be small now but wealthy in all areas. I all see hive China in coming years we should just keep developing in this pace

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I was having a bottle of wine with my buddy last night and I was talking about Morocco, which I quickly realized I meant Monaco, and was saying that just look at what no taxes can do to help everyone. There is no comparison in their success from going from poor to being rich in a matter of a few years.

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Morocco and Monaco are quite different although that doesnt mean Morocco is bad. LOL

Maybe Hive can become that too.

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The truth is that it is a good question where Hive fits in but for now I think we are very similar to Monaco, small but rich and with a good perspective of continuing to grow

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Looking all the strings that Hive has been pulling it might be small but wealthy in all ways. What a nice way I’m using countries to compare .

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We will see. Without external money flowing in, we are dependent upon network effects from users. We need one or the other.

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From this index, one can give a concrete analysis that Hive is a future Monaco. A platform that incurs less expenses on transaction, yet gives out more income.

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Hive is a living revenue stream and it simply ensures periodic payments either passive or active if you put in the work and get involved in different activities, projects and/or Liquidity Pools. I truly believe that someone can make a living here without investing a penny, just need to put up the time and work and he/she will thrive.

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Activity certainly can make up for a lot. We cannot deny that makes Hive stand out. However, we need either a lot more people which will add value or external revenue streams flowing in.

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The rewards are too small. Unless you're already comfortably wealthy to feed yourself for months as you slowly get a pizza or HBD thrown at you here & there and then get lucky enough to gain enough followers without angering the spam police, who will down vote you to oblivion if you don't follow their made-up rules.

Sorry to be negative but I've seen countless excellent photography accounts struggle to get more than 15HBD on any of their posts.... And it dwindles over time until they give up because their time & effort never end up at least meeting the payback.

Productive people don't like their time and effort being wasted. Hive depends too much on the handouts of a few, very judgmental & entitled users/admins.

I like hive. I love block chain. But this is your problem. People don't take this place seriously when an expensive photography venture only gets them a loaf of bread, a gas refill or some new clothes.

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(Edited)

So what do you think? What is the likely future of Hive?

Probably something very good. The Hive blockchain already helped the lives of many people, including mine. A few people even already make a living with the Hive blockchain.

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It is true. We are seeing Hive changing lives. The Hive Borehole project is a great example of what can be done here.

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So more people have a higher education in China than Monaco? Is that because they are older or is it not a percentage? What is a good number and a bad number for the corruption index? I was assuming higher is worse, but I don't honestly know. Leave it to my squirrel attention span to get distracted by the fancy graphic and miss the whole point of the post!

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LOL yes you did. We now know you buy those publications for the pictures and not the articles.

I understand.

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:) haha, yeah, no denial here!

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Monaco perhaps, I think Hive is capable of being either of the two. I might be gravitating to Hive more like Monaco small but wealthy.

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Hive comparison wow.
Monaco and China two wealthy countries. Monaco small but very wealthy almost in all basic areas of life. And China following but having a very large population index. The two countries could be seen in this wise a small family but very wealthyMonaco and the other a very large family China yet wealthy.

To which these countries do I see hive in the future?

The answer to this is tantamount to what hive stands to provide. All things being equal, hive is a mother who is capable of feeding her present children comfortably and very eager to have more generations who would spread into all the parts of the world. Therefore I see hive future China large and rich.

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It will be interesting to see how big things can get. It might be hard to get hundreds of millions of people Hive accounts. There are issues there.

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It will be interesting to see how big things can get.

We're all interested to see changes but the fact is that we work for the change we want and not also working for the change we want means working for the change we don't want.
Having hundred million of hive people, hive account if be our focus, applying the theory of the 12 apostles of Jesus Christ them we are there.

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Hive is a great idea and should not be differentiated only between the two countries. But if it would get more publicity there, then the rest will take care of itself.

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In my own opinion we need to take it step by step,I really like your comparism of Monaco and china with hive,there is a saying that many are called but few are chosen,hive Is definitely among the few choose because of the impact it has on people all around world,I think with time hive will get to that china level,to me we are on the right track because of the efforts been made through social medias but I think at the same time community effort will also help in growing hive,this will entails everyone doing something about hive physically in their locality and when coupled with social media publicity,may be we could start seeing hive grow to the China level.but I still believe we are on the right track,perhaps more individual effort is needed

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Hello there @taskmaster4450, I am brad new in Hive, so hopefully I will reply in the right way, I am open to any recommendation. This is the first article I read, and it is a very interesting one. I found you have a very good point regarding the Monaco Economy and its applicability to Hive. Nevertheless, in order to achieve the Monaco model, Hive would have to bring value to the real world (as Monaco export value to other countries) so hive could capitalize in return; so the questions would be: what can Hive do for the real world? What services/products can hive offer that could have a real-world value and could generate some kind of profit/income to inject in to the Hive ecosystem? Best regards to everybody!

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Unironically, the future of Hive is in the Isle of Man.

Quocunque Jeceris Stabit

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While I don't think Hive can't become something like China economically, I don't want it to look politically like China. It sounds like a nightmare that I would like to avoid.

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I like the Monaco comparison - I sailed past there a month ago.

I've often thought that I'm not sure I want Hive to grow too much.

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