Hive is Just Getting Started and Boise is an Unsustainable Bubble...

Boise is absolutely not the comparison you'd want to make for a cryptocurrency.

Usually, the articles I create are satirical, creative, humorous, and sometimes absurd. This is not one of them. A few weeks ago, an article by @taskmaster4450 caught my attention and usually his articles are quite informative and insightful. In an article that was supposed to be "just for fun" and positive, an unintentionally harmful comparison was made and it was surprising especially considering the source is knowledgeable and a fierce champion of Hive. It was an own goal of a comparison and it is opportunity to discuss the situation in Boise in greater depth.

For those outside of the United States, the comparison probably did not mean much to you. Those who are in the United States would probably tell you in a cursory fashion that Boise, Idaho is booming and that Californians are moving there in droves. However, there is more to this and to compare Hive or Leo to Boise could be alarming to anyone who is new to this space or pays attention to the real estate markets of the United States.

This is a response to this article: Hive As A City: What Would It Be?

"When it comes to forming "digital cities", Hive would be akin to Boise, Idaho."

"For those who do not know much about this city, it is an up and comer. Yet it is still off the grid for many. This doesn't have all the "comforts" of the major city since it is still an area for those with a rugged mentality."

To add more color...

Boise is not at the population nor economic level as more of the familiar DMAs (Designated Market Area). In 2021, it was ranked #101 in Nielsen's DMA Rankings, putting it below Baton Rouge, Louisiana, Jackson, Mississippi, and the combined market of South Carolina's Pee Dee, Myrtle Beach, and the North Carolina Border Belt. There were an estimated 311,270 homes in the Boise DMA.

Hive compared to other cryptocurrencies has a smaller market cap.

This is where the similarities end and where the comparison turns inaccurate.

"Real estate prices are a fraction of what you find in the Denver, San Francisco, and Seattle areas. In fact, Boise is often a destination for those migrating out of those areas."

"Here is where Hive can excel. We are not the first name on everyone's mind when it comes to cryptocurrency. That said, we can see development (construction) taking place which holds appeal to people. We also do not need to be millionaires to transact. With the fee-less design, anyone with a bit of stake can operate."

Californians and Oregonians rushed into Boise during the past 5 years as the ability to work remotely, cost of living, and general safety concerns have resulted in relocations. However, other cities also saw greater growth during this time. Austin, Tampa, Atlanta, Research Triangle, Houston, Charlotte, Nashville, and Orlando experienced massive growth in their metropolitan areas.

At the end of 2021, Florida Atlantic University put out a list of their Top 10 most overvalued real estate markets. Which metropolitan area was #1? Boise, Idaho.

Here’s a look at the 10 most overvalued markets and the premium buyers are currently paying (plus the change in the past four months):

Boise, Idaho – 80.51% (–0.13%) Austin, Texas – 57.13% (+6.41%) Ogden, Utah – 54.46% (+4.76%) Provo, Utah – 49.18% (+3.02%) Phoenix, Ariz. – 48.94% (+6.63%) Spokane, Wash. – 47.61% (+2.4%) Las Vegas, Nev. – 47.42% (+5.54%) Detroit, Mich. – 47.28% (+1.71%) Salt Lake City, Utah – 42.41% (+4.61%) Atlanta, Ga. – 45.17% (+9.22%)

Notice how much higher Boise, Idaho is over all of these other markets. Think this is the only study pointing out that Boise is grossly overbought? It's not.

It is not being swept under the rug either, this is not a hidden secret.

https://www.youtube.com/watch?v=RxTiiy3JT6U CBS Evening News covering Boise's real estate market

Wages are not keeping up with home prices in Boise. Boise is becoming unaffordable for locals to stay and the "Californication" of Boise is a scary phenomenon as the locals fear that their city, suburbs, and exurbs may be changed forever. The incoming migrants have inflated home prices, food prices, commercial real estate, and much more.

https://www.youtube.com/watch?v=5abz8wCIpmw Source for both the image and video showing that Boise has the largest real estate bubble.

Then there is also the distrust in terms of values as Californians and Idahoans come from two different worlds. "Don't California my Idaho" is not a very recent refrain, it goes back to at least 2017! The fear is that California migrants will turn Idaho into a state that is much like Colorado politically and socially. Colorado was once a more conservative state and now it is considered a more progressive state after the influx of domestic migrants made it to the Denver Metropolitan Area. Many of those migrants came from California, New York, and Illinois.

Lack of affordability, overvaluation of existing homes, and feeling like strangers in their home city is causing Boise natives to leave for more affordable places to live. The overvaluation and bubble talk is not isolated to academia, YouTube real estate personalities/consultants, and hyper-dramatized news pieces on broadcast networks. It has made the rounds through business publications. 3 days ago, Bloomberg's Jonathan Levin offered up commentary with the following statements that say a lot.

"If you’re wondering where the U.S. real estate market might start to show its first cracks, keep an eye on Boise, Idaho. The pandemic work-from-anywhere revolution transformed it into one of the hottest markets in the U.S., but home prices are leveling off there. Typical home values in Boise rose just 0.4% last month, down from a 4.1% monthly pace in June, according to Zillow data. That makes it the first of the country’s top 100 housing markets to flirt with falling prices this year."

"According to Oxford Economics, Boise home prices are now about 70% higher than what the median household income of city residents suggests they can afford, worst in the U.S. when Oxford last updated its ranking. “It’s making it harder for first-time homebuyers and locals to afford houses,” Oxford Economics economist Oren Klachkin told me."

Unaffordable and the real estate market is not reflective of the underlying fundamentals. That is a recipe for trouble and some analysts believe that there could be a 40% drop in value over the next 3-4 years. This is not exactly an endorsement of Boise.

But why pick on the Boise, Idaho real estate market like this?

Because the case against cryptocurrencies (privatized, decentralized currencies) is the same argument that those make about Boise. Why compare Hive to a bubble and Ethereum to an established city like New York that has stood the test of time? Hive is not a bubble. When someone compares Hive to Boise, a city that is associated with bubblicious and alienating conditions - it's harmful. It's bad optics.

Hive has not peaked and if you are of the belief that even better days are ahead, Boise's unsustainable market is a terrible comparison.

Not all cities are perfect and neither is Hive, but Hive is not a bubble ready to burst. Hive is not a canary in the coal mine that serves as a contagion point in the cryptocurrency marketplace. Hive is not Boise and hopefully it will never be like that.

Boise is not under-the-radar and there's mainstream and non-mainstream attention paid to the city's unsustainable environment, Hive is not in the mainstream yet. Boise has priced people out and left many alienated, this is the exact opposite of what Hive wants to do.

Witnesses carry a great deal of responsibility and certainly are aware of it. Their public statements can be scrutinized by Hive holders, prospective holders, and media. They are not espousing views that would be deemed unsavory and divisive nor choosing to associate with organizations that openly express such views. However, in Idaho, the current Lieutenant Governor (and Gubernatorial candidate) Janice McGeachin was the special guest speaker at an event where Vladimir Putin received an ovation for his efforts invading Ukraine.

Hive is not Boise. Hive is not Idaho. We should be very grateful it isn't. It's a decentralized environment that can offer something for everyone. It's DEFINITELY not a bubble, either.

And we're just getting started. So start building on it... who knows what awesome things we can do.

Posted Using LeoFinance ^Beta