DID INFLATION KEEP YOU UP AT NIGHT ?
If you have been minding your business in Hive blockchain, inflation should be part of your knowledge about this blockchain. Unlike #bitcoin with a fix amount of 21 million token, Hive is a inflationary token. It means one day in the future we could have a billion token of Hive. That day may never arrive due to other conditions and use case of the token. To ease your pain about Hive inflation, HBA can be mint when you send Hive to the internal exchange. Somehow deep inside the code when we have a lot of HBD, we will have way less Hive.
For that reason Hive is deflationary. When you send Hive to address @null, it gets burn so if this is your calling, you are welcome to do so. While I like to start my memo with Hive in mind, #inflation has been for some years the subject of all nations economies. You could hear other words derived from inflation that could shake you like hyperinflation. This is the case right now for Venezuela and Zimbabwe a while back.
Some countries due to lack of production run their countries with high inflation. Inflation in itself is not bad. Actually inflation allows newbies in Hive to earn from the reward pool. If you are not newbie and you are not holding Hive, a newbie can have more Hive than you in the future.
This is why Hive users are always finding ways to keep their Hive powered in order to earn more from curation. The best way to go quicker, you buy it straight from exchange and power it up.
The inflation with Hive differs greatly with inflation you read on the news. Supply chain disruption is causing the inflation rampant you are dealing today. I always mention the spike of gas price in the US from $2 average to $3.10. Big jump! Due to high gas price, transportation become expensive. Everything that you and I need will become expensive since someone has to pay for the high price.
Hive inflation is the creation for more Hive but the benefit is spread to every hiver that create the inflation. Lately the price of Hive shows the real value of Hive even though the inflation still exists from the beginning. As the underlying DPOS needs Hive power to maintain a ratio to the reward pool. At one time we think we had too much Hive. Everything changes, we need more Hive to keep the liquidity afloat.
For the sake of this blockchain, inflation makes sense. As the price continues to appreciate more Hive could reach the market even though supply and demand will push the value upward. Do not forget Hive is the run the whole blockchain from layer one to layer two. I read an instructive post today showing Hive is one busy token. You need Hive for HBD creation, Hive powered and resource credit. Imagine one million hivers are looking to hold 50k Hive. I crunch the numbers and it is in the billion like 50 billion to say. We are not there yet but this is something to think about for even 500 thousand.
Understanding inflation within crypto is a soothing mentality knowing there are tremendous values laying down in crypto land. With DEFI around, inflation should not be an issue if you know the importance of moving away from cash. 2022 looks promising. While the economy lags behind, crypto market is looking forward with innovation and forward thinking. I have to drill this on my head, I hope you do the same. While inflation is eroding the dollar on purpose, asset like BTC, Hive, etc... are designed to accumulate in value. Even though the highs look low, crypto is still way higher than 2020. The fiat still lagging way behind.
With no middle man dictating the next move, crypto offers the same mirror to everyone. I know diversification is somehow attribute to impatience in crypto but it deserves a second look when you know your way around. Within Hive communities, diversification makes sense. Let alone Hive, HBD, HP, we have many tokens that stand to elevate the blockchain. #leo is one with #bleo. Lately I learn about #beeswap promoting #bxt. #punkofhive and a lot more. Can't forget #splintrlands.
When you add them all to Hive ecosystem, it is mind blowing to see what 2022 will bring to the crypto sphere. Yes uncontrolled inflation is bad, really bad. At least we all learn to become a producer, remain active and stay ahead. Inflation will never go away. It is by design a release valve to keep things running. If there is one thing Hive does best, it keep us upfront and stay alert in the financial world.
Posted Using LeoFinance Beta
