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RE: Demystifying Hive: What would be a convincing introduction of Hive?

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@mykos
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What is the maximum number of Hive that can ever be minted? Answer: no limit How long does it take to process a block in Hive? Answer: 3 seconds How many Hive is minted in every block? Answer: I don't exactly know

Hive is inflationary so as it grows larger similar to what you'd have in our fiat currency systems more and more currency can be produced. Some believe that's a good idea if you think back to the early history of money. The reason gold was a bad money was because it wasn't enough of it to go around.

Similar to when credit cards first came out you had less economic access because most of the population didn't have them thus you had less opportunity. So some believe the less hive in circulation would create this problem. However crypto is not the same as the standard economy.

In crypto deflationary coins have performed better and inflationary coins have done poorly. That's why hive can barely stay in the top 100 but many bitcoin forks and deflationary coins have historically performed well due to their deflationary qualities

How does the consensus mechanism work? Answer: I have written a post about it, which can give us some clues about witness How are rewards given out? Answer: I don't exactly know too, but I have written a post about this in the past

Hive works on a copy/paste code of steem called "dpos" delegated proof of stake. a person new to crypto will have no understanding of this. The important idea is to understand all it basically is would be like if a bitcoin miner got voted in, instead of deciding of their own free will to mine and thus the community would have to elect them.

Now at first glance that doesn't sound too bad because you could then come to the conclusion you're protecting the environment.. there is less energy wasted and more security to the network until you realize that most of the witnesses voted in are controlled by money. So it's not a democratic system it's more similar to our politics of today how money can get you voted in if you have enough cash.

So in reality it more mirrors a feudal system/oligarchy which is a vast problem.

Hive has no transaction fee, how come? Answer: It uses the resource credit model. That'a all I know.

This is the best feature of hive and it's only saving grace. The reality of the situation is the transactions are not free. However the perception and convenience of the payment system makes new users believe it is free which is still in my opinion better than the alternative. So this is still a plus for hive and a good feature.

So resource credits take bandwidth nothing in the world is really free. Electricity and physical limitations do exist in hive the system can't really provide unlimited bandwidth. So what happens is these resource credits give you a limited amount of free transactions. if you exceed them then you can not do a transaction so it's more like a pre credited transaction system not a free transaction system.

I like it still though and i'ts probably one of the only reasons i'm here because it still presents a better more efficient approach to dealing with transactions. So in as close as you can get to free model it would be at the top of the list, so that's a pro

What are some of the ways projects in Hive-Engine and layer 2 help give value to Hive?

The idea here is that great development and apps will eventually bring in more users and more money. The actuality of the situation is all that generally happens most of the time is that the projects created eat the lunch of hive. As to say the little money that exist in the hive ecosystem gets dispersed to a few of these projects but no new money is created. Even here on leo i don't think they are really creating new money. i believe it's just cycling old hive money.. my opinion i could be wrong but i don't think i am. Which is why the daily trade volume here is so low for leo

I think the only product that can eventually bring in new fresh money would be projects like bitcoin myk and bbd coin. That is because they aim to establish a stable currency that provides the citizens dividend to the world incentivizing them to join. So it feels similar to a ubi program but the stats suggest over 50% of the globe would opt for a ubi .. so its conceivable that billions of people would join bringing new value and money based on that. i think the other tokens are a waste of time and at best are just cycling old money and a few are getting luck at this point

How is Hive not based on the philosophy of scarcity but abundance? And will it work well?

After about 7 years of research my conclusion is that Dpos itself is a catastrophic failure. So hive won't work well and will eventually fail. Here's the crux of it all though. Any algorithmic system can work provided the distribution rate is good and there is a sense of urgency. in projects like bitcoin myk the sense of urgency will always exist because of automation and future job displacement which seems inevitable and people will always be incentivized to join because of the citizens dividend

So is it too late for hive? Almost but the last chance is if an app like bitcoin myk recognizes the problem and can control the distribution rate to the benefit of the community to balance the model. now new people won't understand this and they'll try to use hive and because the system is a failure their dreams of having economic prosperity on hive will fail because they don't have the citizens dividend. it will fail because it wont' be enough incentive to go around.

so new people generally after 2 months will leave. you won't convince them to stay. When i first came here i brought 2 friends.. they both were literally gone in 2 days. So i hope i've answered all your questions which i think were good and if you have anymore feel free to reply i'll be more than happy to respond.

As a give we have provided you with the citizens dividend in your wallet. enjoy and we hope you look forward to a more prosperous future with us.

Posted Using LeoFinance Beta