Hello and welcome to this SPinvest post
SPinvest is a tokenized investment fund/club for all users of social blockchains. Everyone is welcome! The concept of SPinvest is to get rich slowly by using time tested methods of earning, saving and compounding long term. This lets SPinvest offer an ROI of 20% per year on SPI tokens. We encourage long term investing on and off the blockchain. We hope someday everyone will HODL some SPI tokens that can be bought directly from @spinvest are through the hive-engine
Happy mid-week Wednesday to everyone reading. Today we are going to look into something that SPinvest has never talked about before. I have written a lot of posts for and about SPinvest over the past 16 months and covered lots of different investments, plans, set goals and reports but never have we looked into SPinvest's worst-performing asset. I have thought about writing this post before but never pulled the trigger as im worried about what sort of feedback it will get.
It is by far our worst preforming asset, by far and that is including 22 weeks of income generated from our HIVE POWER balance. We started out year 2 with total HIVE holdings of 85.7k worth $35,561 and today we hold 94.1k HIVE worth $12,891.
Total Earnings breakdown from year 2 start,
Total HIVE Earned - 16,386.11
So earning 16k HIVE is pretty good for 22 weeks, that's a 9% increase from our starting balance of 85.7k HIVE. Problem is the HIVE price has nosedived and fallen 65% in the same time, it's fallen out of the top 100 and I can't see any reason why this trend will not continue based on the past 3 years of performance. Let's make 1 thing clear before you start thinking the bull run is coming and HIVE is going to the moon with everything else. We just had a small crypto market bull run between April and August and HIVE was no part of it at all. On the 1st of April Bitcoin was priced at $6,351 and HIVE at $0.31. Today Bitcoin is $10,600 and HIVE is $0.14. Do not get tricked into thinking HIVE will ride the coming crypto bull run, it might go to 50 cents but its gains if any will be minuscule when compared to other cryptos. A bag full of lucky beans as worth less than 1 golden nugget (and harder to liquidate).
Im not hating
I have love for HIVE obviously, I've been using the platform daily for over 3 years but I don't see it as a good investment. Over the past 6-12 months, it has become more clear to end users that HIVE is a utility token to be used for second layer stuff. When you see a HE token go up in value, you're seeing it go up in value against HIVE making HIVE the base currency giving it its utility as an example. Lots of other new use cases have been introduced, lots are being worked on and we are still waiting for SMT's (HMT's) to be released, exciting times. We have an active blockchain, we have usernames for wallet address's, fees are free if you have some HIVE powered up and transactions take 3 seconds, what more do we need? I have no idea and it makes no sense, it should be a popular chain.
From an outsider's POV, HIVE is a forked token of STEEM because of Justin Sun and no more. Im not sure what you guys think about Bitcoin Cash, SV are ETH classic but i think they are all shit coins. Then again, im not involved with any of their communities, if I were maybe my thoughts would be different. Because we are HIVE users, we see all the great stuff going on within HIVE so our view of HIVE is different compared to the vast majority of people involved in crypto. From an outsiders POV, it's a small niche blockchain for bloggers. If you can earn it for free, why would you invest in it?
What does this mean for SPinvest?
Im is not sure but I do know that I need to make token holders aware of the fact that our worst-performing asset is the one we value our token with. There is no plan to power down any amount of HIVE POWER but some focus will be transferred to investing off-platform. In terms of dollars, holding cash under the mattress is better than holding HIVE even when earnings are factored in. I could be wrong and eating these words in 1 years time, its crypto baby and everything can happen. My intuition in regards to investing for SPinvest over the past 16 months has been mostly spot-on and I also feel the decisions we make over the next 6-12 months will be the difference between a good 2021/22 bull run and an epic bull run for SPinvest. I'd rather hedge our bets and create something that is not as dependent on HIVE as it is now.
SPinvest was founded on HIVE and will always remain on HIVE but SPinvest is an investment club and HIVE is not a good investment as its use cases as a utility token increase. Second layer stuff will be where we invest on the HIVE blockchain as we have done with Brofund and LeoFinance already but liquidity is always a problem here. We hold 4000 Bro worth 16k HIVE but how long would it take to sell all 4000 tokens at 4 HIVE each? could you even sell that many for 4 HIVE each? Are they really worth 16k HIVE if we can't sell them for that price? When we have 1 BTC worth $10k, we get $10k for that in 1 transaction within seconds as there's tens of millions worth of liquidity for Bitcoin. Paper value and real value are different things when SPinvest says each SPI token is worth 40 cents, SPinvest can buy back every token in circulation for 40 cents because SPinvest is invested into high liquidity investments that offer quick painless exits. HIVE offers us the chance to exit large amounts quickly through exchanges but the 13-week power down kills any hope of taking advantage of price increases making it a bad investment token. Not shitting on it are moaning, just pointing out facts. If it takes 13 weeks to cash out, it's not a good investment token.
Spinvest is still young and I will not consider us to be matured until we complete at least 1 full crypto market cycle.
Any time I do have extra will be focused on building SPinvest off-platform as I feel this is time better spent at this point. We've focused 16 months on building HIVE incomes, we could be earning 1500-2000 every week easy but the engagement and willingness from club members are not there meaning 5-6 people are producing the income and token growth for over 400 token holders. If we had 15 people running small projects we could be earning 2000-2500 per week easy. You can lead the horse to the water and you know the rest... We've reached our HIVE earnings cap, it would be time to take advantage of that. The best move SPinvest ever made was to cash out HIVE into something that was not HIVE. Let's continue the tread and see where it leads us.
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