The Psychology of Market Price and Engagement
Images sourced from Canva Pro
Have you ever wondered why sometimes Hive feels like a festival with a tonne of engagement, your earnings are up. You're making new friends and everything is going great. Than all of a sudden bam! The chain goes quiet you're struggling to get noticed, you're not earning as much and it feels like everyone has left the party but you're still here.
Standing in the corner like the last person holding onto whatever is left of the party as everyone else has passed out or gone home.
It's quite the interesting phenomenon that occurs and that's around price activity with the higher the token price the more people return to the platform, produce more content and engage a lot more.
Then once the token declines to a low level the engagement and posting decreases to a point prior to the boom.
It's quite the interesting psychological effect because as the token increases you actually earn less despite the token increase the amount of Hive you get is actually less.
In times of dips upvotes tend to provide more of a Hive which once the token price increases also increases your account valuation.
Also when Hive is higher you will also notice that upvote % that people provide also reduce because people often provide an upvote based on a monetary value.
For example if someone always upvotes $1 they are likely to continue providing that same upvote value. In peaks that might look like a 20% upvote but in dips to make that $1 it might be an 80% upvote. Therefore providing a blogger with more Hive as the dollar value produces more Hive.
What's your strategy?
Are you active now in the current dip? Are you currently still blogging or are you just focusing on curation?
What about how you engage during peaks and dips do you alternate how much you upvote when there is a dip or a peak?
I'm interested in knowing abit more about the behaviours of the blockchain and how people perform during peaks and dips. I also find that when peaks occur the content produced gets a lot better as a lot more people are battling for higher upvotes.
There are also a lot more projects and communities launching during peaks and I've even seen a few more tokens being developed.
It's quite an interesting position seeing activity increases in peaks because it's more beneficial and profitable to be posting during dips because you earn a lot more Hive.
But with a global network it might pay for people to visit only in peaks. If you're from a smaller economic nation a Hive value increase to the previous $US3 could be more than enough to feed your family for a week.
With some nations having a weekly and even monthly wage of $US2 a month if someone earns 1 or 2 Hive a day their living standards grow significantly. They've gone from poor to middle class all in a few I's and O's. That's quite the impressive feat for a blog.
And it is here where we will start to see global economies and living standards lift. It's also what the rich are calling the "destabilising" of a national financial system. Because, people like to try to control how much others earn and if your bottom is earning good money economies lift and the world costs alot more.