Sustainability is the Hodlers Mindset

The value of our Hive portfolio can be an interesting thing. This is because estimated value does not mean instant value, and even if we decide to liquidate (power down) , a lot can change within the period it takes for the power down to take effect.

It is quite remarkable and almost surreal to grow one's account from virtually nothing to a stage where if is valued at thousands of dollars. Yet for the largest holders, the more their accounts grow, the more uninterested they are with taking profits in the short term.

Tarazkp gave a good explanation in his post today, about why it is that short term profits just would not suffice for him. According to him, his account at current value will likely cover average earnings for about a year in his country. Now for many that would seem huge, but if it were simply a case of taking profits and leaving, there would be nothing to fall back on.

The entire point of living off crypto is to get to a stage where passive income from the blockchain suddenly overtakes active real life income, and is able to replicate itself in a sustainable manner. I think some of us make mistakes in this area, and take profits based on assumptions of what we expect to earn once we start making significant amounts.

However the mere fact that crypto was able to cover earnings for about a month does not guarantee the next month if proper foundations are not put in place. I remember a time when people quit their jobs to concentrate on blogging on Steem because the prices were ridiculously high back in 2018. After the crash, a lot of people had to return to those said jobs.

Sustainability goes beyond a month or two, and thinks beyond one price crash or another. It is for this reason that many entrants are open to a variety of investments in the chain in other to hedge against a potential drop in value from one or more of their holdings.

Hive as a chain offers so many ways to do this, particularly with Leofinance and DeFi. However, the most important way to go about building a sustainable stream of income from Hive is through staking. Even if blogging is rendered obsolete as has been highlighted in the past, those with significant stakes still stand to benefit from whatever direction the new Hive does take.

It is important to make the sacrifices for growth now so as to properly benefit in the future. Of course, there are limitations to what an individual can accommodate based on financial constrains, but a mindset of sustainability will create avenues for continued growth irrespective of the challenges.