Freewrite: HIVE Is A Digital Nation

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3 min read



So I've touched on these topics before, but I thought I'd revisit them since they are fresh in my mind.

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Two Forms Of Bitcoin Maximalism

I went to another Bitcoin meetup this weekend. There are always two camps at them. First there are the Bitcoin 'everything maximalists' who think that EVERYTHING can be built on Bitcoin. They cover their ears and rock back and forth autistically when you mention crypto, and that innovation can be taking place elsewhere. Then there are the Bitcoin 'monetary maximalists' (like me) who see Bitcoin as the hardest most secure monetary network, but realize the digital value can take many other forms as well. I really think the 'everything maximalists' are missing out, and that 'monetary maximalists' will end up accumulating more Bitcoin in the long run by participating in various digital communities. A lot of these guys just parrot talking points from Bitcoin Twitter and podcasts. Good luck trying to dig any deeper or ferret out any nuance in their position. To some extent I think the religious Bitcoiners are a necessary part of the crypto immune system, and I don't think a person will go poor taking this position. They are just missing out on a lot of innovation.

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Digital Value

Some of that digital value exists within various crypto projects, including HIVE. I believe that Bitcoin will sit at the top of the digital value pyramid, with lots of other forms underneath providing various features and liquidity. Hayek, the Austrian economist called for competition in money, and I fully agree with that position. I also don't believe that Bitcoin will eat up all the physical value in the world either, such as real estate and gold. Shockingly, I think fiat currencies aren't going anywhere, though their use will be relegated to ephemeral transactions. Given Bitcoin's position, it should be boring and slow to innovate, and NO, not everything can or should be built on it.

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Digital Nation States

Some crypto projects coalesce into tight knit communities, though various factions do form within. These communities operate very much like digital nation states. Like analog nation states, they have a system of governance. As long as these digital nation states have residents, their tokens will have value (even if it's miniscule). Like all nation states, they will rise and fall, with the most, global, widely adopted, useful persisting. Which ones will persist? I have no idea. This is why I speculate. HIVE is one of those projects I feel has a great chance of persisting, and the community-driven aspects of it are the primary reason.

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HIVE As A Digital Nation

The delegated proof-of-stake (DPOS) system that HIVE uses creates a unique social stratification. You have whales at the top, who have tremendous influence over governance-- some would call it oligarchical. The delegation system is the counterbalance to that, where enough holders could band together to override the oligarchy. We witnessed this with Justin Sun's takeover of the STEEM blockchain. His undue influence was kept at bay for months leading up to the ultimate safety valve, the fork. If you don't like where the community is going, and you have enough disillusioned members, they can simply fork off into a new chain and go their own way. This is another check on the power of those with stake. Unlike most other crypto projects, the social aspect of HIVE and community make it very compelling.

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As a member of the HIVE community, in a strata which I can best describe as middle class, I am thrilled to be here. I don't believe that HIVE will ever be an ubiquitous, mass-adopted platform, and it doesn't need to be. It just needs to have a dedicated community or communities that create and exchange value. I am a member of multiple, including Splinterlands and Leofinance. Not everyone will share the same experience or will want to be here. That's okay, it's voluntary! Some people will not be a fan of the oligarchs or governance system, that's also okay. It's voluntary. If you don't like it here, work to change it through buying more stake, or by exerting social influence. You can also just go find a community more to your liking, or if you've really got the juice, FORK YOUR OWN! And love it or hate it, I have bought Bitcoin with HIVE I've earned and traded, and will continue to do so.

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