Hello, SPIer's and welcome this today's post. The crypto bullrun is in full swing and anything is popping, green candles everywhere and many of us are watching our portfolio's dollar price increase massively. I look at SPinvest's HP balance and think to myself, why do we hold this balance? Sure it's the platform token and the token that SPI token is valued in but it's losing us money. I love HIVE, I love 3-second transactions, I love that usernames are address's and I love that it's decentralized. What do you do with your HIVE? do you power it up to earn 10% from curation, use it to buy into HIVE games, delegate it somewhere for a profit? do you buy HE tokens? cash it out? are convert it to LEO to earn 30% in curation? There are other things to do with HIVE but these are it's most used cases.
I have said it many times before and I'll say it again. HIVE is a bad investment. Dont get that twisted, im not saying it does not have any use case and will go to $0. Fiat cash is a bad investment, but it's essential for life to pay taxes, food, rent, etc. I personally think holding fiat long term is a bad investment, fiat's use case is to be used as a currency. From my view HIVE is the currency of the blockchain are a utility token if your like that terminology better. It's earned by most from creating content which is a lot like swapping your time for money which is what most of us do when we show up for work. I'll not go into HIVE's high inflation rate we all know it's high and it's always been like this.
Instead, we are going to explore the idea of powering down all of SPinvest's HIVE POWER and using that money to reinvest into other HIVE based projects. I have no plans are ambition to power down the SPinvest wallets, this is purely an exercise to show what we could do if.....we powered down the HP.
Before we start, let's look into how HIVE has performed as an investment from it was airdropped for free to STEEM holders. SPinvest was airdropped around 83k HIVE and we currently have around 95k. Im using charts from coingeko and im looking at the price on the 4th of each month starting in May. HIVE was launched in April with the initial pump and dump happening and seeing the price moon to around $1 for 1-2 days before tanking 50% in following 2-3 days. Let's compare it to other investments and i'll show you why the HIVE price will not follow the market. I look at charts and follow the lines, im not a trader are analysct but common sense tells me if everything is going up and HIVE is going down, it's not gonna follow the market. Why would anything change? The $ vs HIVE chart shows how many HIVE $1 bought that month.
The charts are not pretty for HIVE, we can see that fiat that loses spending power performed 3 times better than HIVE and it's very clear HIVE is not following the market. If you had $1000 worth of HIVE on the 4th of May and a glass jar with 1000 dollar bills inside, you could have burnt a dollar every day until today and still be $461 better off as your HIVE would be worth $292 today.
I used BTC and ETH as example's as they would have been most likely what we would have invested into, I showed USD to make my point clear as a bell. Jumping deeper into SPinvest's HP balance and how it's been performing in terms of dollars from launch. I have factored in earnings and taken HP balances from weekly reports to be as close to fact as I can.
SPinvest has added 11k HIVE POWER into its wallet between May and Jan. If we sold on day 1, we would have had $35k. Now we have around 11k more HIVE than we started with and it's all worth $11k. We have all heard the quote from Warren Buffet saying that "compounding is the 8th wonder of the world", He does mention that you need to compound an investment that at least holds its value are in the case of many cryptos, faster than it loses value. If I had a dollar for every time someone has suggested SPinvest invest in a staking token because it has a 200% ROI. 90% of the time when asked what the blockchain did, nobody could answer, they knew was if you staked it, you would get a 200% ROI and that was all. Listen, even if HIVE paid a 200% ROI for leasing are curating, we'd still be losing dollar value.
I understand a lot of people are heavily invested into HIVE both with time and investment, I am 1 of them but dont be delusional and think that HIVE is going to go to $1+, I dont see a 1000% pump coming to HIVE, why would this happen? and where's the money coming from?. Hey, if it happens, I will be happy to eat my words. Think about how much your HIVE, hive-engine, STEEM and BLURT wallets are worth in dollars and then think about how much of your hard-earned fiat you actually invested directly into any of these wallets. I knew some people bought in heavy when STEEM was $4+ are even HIVE at 50 cents. Think how much profit they have made compared to someone that has never paid for 1 single HIVE with fiat. When brought down to its bones, HIVE is a reward token, it's given away for free and you should not buy something that is free even if you consider your time to not be free, you sorta got your time for free as well. I say earn as much as you can, buy it when you need more than you earn and spent it quickly, reinvest it back into HIVE project's whether that be an investment, gaming, tribe are anything else, dont cash it out on the exchange. Keep it within the ecosystem and keep it moving which will help with growing daily activity on HIVE dapps which is real exposure. Writing posts about how great HIVE is on the HIVE blockchain is preaching to the choir. Write your posts on Reddit, that would be more useful as exposure but than again, Reddit dont give rewards for posts so I guess, it's not worth it for your time, right? lol.
Use your HIVE, grow Dapp activity, keep it moving around. The more HIVE moves about, the more exposure it receives. We are what? 10k max active users? I know the reported number is higher but data bots cant tell the difference between a manual and an automatic transaction. Posts, comments, edits, transfers, powerup, receiving a dividend, upvote, downvote, following a curation trail etc, etc the list is endless but all transactions. If you thinking how can uploading a post be a transaction, can you upload a post if you have 0 RCs? If you are required to spend some RCs to interact on the blockchain, then it's a transaction. How many accounts have been created so far, 1.5 million? 2 million? in 5 years? Not a great retention rate.
I hope in the future that blogging is to HIVE as selling books is to amazon. Long gone and forgotten with many new fields explored and dapps added to the blockchain. I personally only post content for projects to share information. I dont post from my personal account ever because there are so many other things on HIVE im into. I would put my bottom dollar on im a lot more active in HIVE than someone who bangs out 2-3 shit posts per day of what they had for dinner. Writing posts is a hard work day in and day out and curating is hard also, if it was easy curation trials would not be so popular. Yes, powering up HIVE to curate is very noble but also one the worst rewarding ways to use HIVE plus one of the most work-intensive also. . I think games, tribes and investment (defi) tokens will be HIVE's future.
Once again, not saying HIVE is a shitcoin just saying it's maybe not a good HODL token if your expecting dollar gains. It's an excellent token, in my mind the best token for actually using for transactions. It's faster and easier to make transactions on HIVE than any other blockchain that I have used. I do hundreds of transactions manually every month and I've never one time lost HIVE. It's is excellent for using, not so good for HODLing. I'll finish by saying, we all know bull runs come and go, how good is an investment that takes 13 weeks to get back? If the price did jump to $1 someday, what percentage of you HIVE POWER balance could you sell at those prices before it tanks again.
What if we powered down all SPinvest HIVE POWER?
First off, our earnings would drop by around 230 HIVE a week as we would no longer be receiving leasing payments but we would have 95k HIVE tokens to play with. I understand powering down takes time but this is a thought exercise and we'll speed things up.
I would start off by going to hive-engine and seeing what tokens we could invest in, something that will bring us in some income. As we are playing hypothetical here, let say we invest all 95k HIVE into BRO tokens. At today's price of 8 HIVE each, we could buy almost 12,000 tokens and that would earn us around 402 HIVE per week in dividends, almost twice as well as leasing and a little work required to convert div's into HIVE, 10 minutes per week.
We could buy around 31k LEO and based on earning 30% curation we would earn 530 HIVE's worth of LEO every week. Again, would need to sell some LEO every week to pay dividends. Im aware dividends are paid in SPI but the SPI sent out are paid for with HIVE. Moving on, we can see this is a little more than double what we are earning from leasing.
If have no idea on the ROI on dcity but im pretty sure that spending 95k HIVE would bring in SIM rewards of much more than 230 HIVE per week, maybe more than that each day. Our current city is worth around 5k HIVE and brings in around 23-25 per day so times that by 20. Nah, that's too much. @shit-signals?
There are other tribes, investment tokens but nothing that looks like a solid investment. We are not here to take a gamble, time tested and proven is best. BRO, LEO and DCITY all qualify. Theses 3 investments can also be viewed in order of ROI vs liquidity. Leo is the most liquid of the 3 being able to cash out a few thousand dollars in a day easy, BRO token offers a higher ROI but would be hard to cash out 12k BRO tokens without crashing to price and DICTY offers the highest ROI but is also the hardest to sell for what it's worth and within any reasonable timeframe. A perfect example of reward to liquidy. The risk to reward with the risk being not being able to cash it out for the value you think its worth. Hive is comparison earns around 10% in curation and takes 13 weeks to power down. I think hive-engine tokens are better than HIVE POWER.
Point is, we are sorta using our HIVE balance in a very inefficient way and as an investment fund, we should really reallocate these funds to earn more. Our hive engine wallet is already worth more than our HIVE wallets and I only see the spread between the 2 increasing as tribe token earnings are worth much more than direct HIVE earning. For SPI, when we earn 2 HIVE, we earn 3 HIVE worths of HE tokens.
What do you think?
So what do you think? Is it a good idea to power up HIVE? and if yes, why? Would you be ok if SPI powered down its HIVE POWER? All hypothetical of course.
Posted Using LeoFinance Beta