If Hive Were Your Business

If HIVE Were Your Business

One of the better features of Hive is that you do not need much to get started. At the very least, you need a computer or mobile device to set up your account and start posting. In fact, many Hivers rely on the blockchain for income. In some parts, $1 per day can go a long way. Therefore, starting a business with almost nothing is possible. However, it is going to be tough. Particularly, if you live in a place with a higher cost of living. But, if you were going to start a proper business with proper financing and assets, could you do it with Hive?

How Much Capital Would You Need For Hive As a Business?

Let’s assume that your Hive business is a one-person operation. That is, you are the only employee. As you are an entry-level employee, you can only expect to earn about $2000 per month, which is $24000 per year.

Let’s say that at a 10% rate of return, you would need about $240K worth of Hive, which at today’s price is roughly 615K Hive. But, that’s just to break even paying your salary. It doesn’t include any other costs, such as utilities and rent. But, let’s assume that as the owner of your Hive business, you allow yourself, the sole employee to work remotely from home.

A startup cost of $240K isn’t too bad as far as businesses go. What would you spend on opening a restaurant or a shop? If you were into manufacturing, you could easily spend $240K on one machine. Never mind the raw materials.

The big difference between a traditional business and a Hive business is that your cost for rent, utilities, and capital equipment could not be recovered. If I bought a machine to manufacture a product for $90K, I could not expect to get back $90K, if I need to sell it. All the business assets would be depreciated if it becomes necessary to liquidate. Whereas Hive can be liquidated at market price. If things don’t work out with your Hive business, you may have to sack your employee. However, you would get your investment back, more or less.

Being a Timid Investor

What got me thinking along these lines is that I am realizing that online publishing companies often have several people on staff in rented spaces and professional editors. They have sales reps out looking for advertisers. Such an operation would require large investments for operating capital until they can become profitable. If, as a writer, I would want to emulate any of that, it would require a large investment. It would be a disservice to be too timid in my investment in the business.

At my current level on Hive, I could not afford to operate. The returns are too small. They are too small to provide the income I need. They are too small to be seriously considered an investment. If I went to an investor to request a loan to start a business for the amount of Hive that I have, he would walk me right back out the door and ask that don’t waste his time again. I would need to go bigger to make Hive a viable business for me.

It is sobering to think of all the time I have fantasized about retiring and traveling the world with Hive blogging as a source of income. Well, I have 10 years to crank it up. If you are fantasizing about retiring on Hive, you need to run the numbers to get a better idea of what Hive Power levels or HBD you will need to make it a reality.

Facing Reality

The reality for me is that I need to start putting in more money. Blogging and curating alone won’t cut it. If this were a business, it would be woefully undercapitalized. Even if I took into account my pensions, I would still need at least $120K to supplement my income. I’m nowhere near that. This isn’t even adjusting for inflation in ten years. Sweat equity may not be sufficient for a Hive business.

These numbers are for my situation. It is possible that where you live, your numbers might be less. But, the reality is the same. Whatever your target income is will be based on your Hive Power or HBD savings. I’m calculating a 10% return for both. Fortunately, compounding is in our favor. But, even compounding has its limits.

If Hive really is your business or your investment, are you being realistic with your numbers?

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