The Power Of Smaller Accounts On Hive
It is easy to fall victim to looking at the larger accounts and all the power they have. When we do this, we are not realizing the potential impact that each person can make.
A great deal of what we discuss comes down to a numbers game. Hive is really a microcosm of a much larger system. The ability to understand this is what can radically alter the path we are taking.
When we look at the existing system, it seems insurmountable. Decades were spent constructing this system, one that is well insulated against outside attack. If this is all we focus upon, we could be paralyzed.
However, if we look at things in proportion to the impact that can be made, we see a completely different story. While, overall, the cryptocurrency industry is very small, it is growing at a fantastic rate. There is no doubt that growth from the major economies is stunted. The last couple decades saw most of the major economies drop under 4%. The EU and Japan are basically flat. We see the United States quickly heading in that direction and even China is slowing.
This provides enormous opportunity for cryptocurrency, a digitally-based economy that is growing at hundreds of percent a year.
On Hive, we see larger accounts and the power they wield. Nevertheless, it is best to step back and consider how everything operates based upon a percentage. Influence is determined by one's holdings in comparison to the overall number of HIVE powered up. Here is where things can change rather quickly.
As stated, it becomes a numbers game. Like anything, a few of anything is going to be outdone by the larger if the latter is focused. This is exactly what is happening with cryptocurrency. With Hive being a microcosm of this, we can apply the same logic.
When the situation with Justin Sun arose, we saw a coming together of many accounts, both large and small. It was a time when the power of the smaller accounts were realized. The obvious impact on an individual level was not great but, collectively, they were making a difference.
It is uplifting to see during a time of crisis. However, it is something that we need to apply other times as well. If we step back, we can see how influence change change over time.
Token distribution on a blockchain like Hive is vital. Since it used the Delegated Proof-of-Stake (DPoS) structure, those with stake have a great deal of influence. The key is to spread it out as much as possible. For this reason, the need is more accounts holding greater amounts of HP.
Here is where motivation enters the picture. It is easy to get discouraged, knowing that the influence one has individually is not large. Nevertheless, this is exactly where the focus needs to be. Collectively, smaller accounts are the ones who will end up making the difference. This is something that has to be embraced.
Doubling Account Size
Can you double the size of your account? In other words, can you near double your influence on Hive?
Here is the place where we see size does matter. This is a very realistic possibility for smaller accounts, especially over the period of a year. Larger accounts are going to have difficulty.
For example, it is not easy for an account to go from 1 million to 2 million HP. This is going to require a lot of money if one wants to use fiat to get there. Outside of that, it is almost impossible to reach this goal in 1 year.
The same is not true for an account with 100 HP. The jump from 100 to 200HP is the same percentage, yet is much easier to accomplish. To start, it presently requires roughly $130 to achieve this. If the resources are lacking, then the ability to get rewarded to meet that end does exist.
In investing, the term used is "relative". Here is where one asset is compared to another based upon the percentage move of each. The smaller account can really outpace the larger on relative terms. Where the latter might achieve 10% growth, the former can put over 100%.
We see something interesting when looking at the latest breakdown of MVests (HP).
What will it take in collective increase, on a percentage basis to surpass the next category?
Here is how it breaks down:
Isn't that interesting? The Dolphins and Minnows, collectively, have a much easier time surpassing the category ahead in influence than the Orcas do.
The Dolphins do not have to double their power. Instead, they only require increasing each about by 1/3. This will enable them to collectively have the same influence as all the Orcas.
Of course, graduation from one level to the next can alter the numbers a great deal. Nevertheless, the point here is that, on a relative basis, the smaller accounts can collectively outpace the larger ones.
This is a well-known concept. We see this in the employment arena. For an Amazon or Tesla to add 100,000 new employees is quite a feat. It garners a lot of headlines when that happens. However, for 100,000 small businesses to add 1 employee each goes unnoticed.
Here we see the power of numbers.
It is natural to overlook the impact that is being made when it comes in incremental units. The path to great change is often achieved on a daily basis, in unnoticeable ways. Nevertheless, over the long-term, we can often see the difference.
Let us take a look at the distribution that was present as of 8/1/2017 and see now things changed over the past 4 years. We have to factor in the Whales has the ninja-mined stake which is now locked in the Decentralized Hive Fund (DHF).
That is quite a change compared to what we see today. We also have to keep in mind, at that time, the base token was the only game in town. There was no Hive-Engine or layer 2 tokens. Splinterlands or other games were basically non-existent. Instead, people were rewarded in HIVE and that was it.
Here we see how the wealth within the ecosystem grew a great deal. Other projects are enriching users in many different ways. That said, we must not forget how important the base layer token distribution is. A portion of our focus needs to be on HP accumulation, regardless of how small our accounts are. In fact, as we are showing here, it is crucial for smaller accounts to increase the percentage of their holdings.
Smaller accounts have a lot more power than they think simply because there are so many of them. So while a .5 payout of HP is not much in absolute terms, for an account with 100 HP, it is large on a relative scale. Keep getting that payout daily and the account will see a 180% jump over the course of a year.
That is something the larger accounts have a very difficult time doing.
As we can see, the impact over the long-term is there. We simply need to focus attention on what is taking place and how we can keep growing the accounts.
Do not overlook the collective power which exists and how much of a difference smaller accounts can make. It is important for the entire ecosystem.
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