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avatar of @mynima
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Couldn't agree more regarding the link between the utility aspects of HIVE and the incoming liquidity shock. This is very much what has been seen on-chain in BTC for some times now, where folks have been (in the case of BTC) removing liquidity from exchanges and storing it elsewhere. However, the key difference with HIVE is that there are multiple avenues with which liquidity can be tied up by participating in the network activities. Furthermore, if you also factor in that (particularly for the resource credits scenario) it isn't quick (taking time to power down) to reintroduce the liquidity back into the market. This could mean that rather than the usual boom and bust cycles that we can see with kneejerk reactions of the market price (short term pumps etc), HIVE will most likely follow a more gradual sustainable path and encourage individuals to have a much more long-term mindset, instead of being reactive to the market at all time. It will be very exciting over the coming years to see just how this drop in liquidity affects the dynamics of the HIVE marketplace and the community as a whole. Exciting times ahead!

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