You need a developed business model to give value to the HIVE token. All you have now is inflation diluting the value on a few frontends.

Doesnt seem to affect Ethereum.

Using LEO, would you not say that the user or investor would prefer the LEO token rather than the HIVE token?

They might prefer LEO to Hive but they need HIVE to engage on the Hive blockchain. Someone has to put up the resource credits to operate. So every user on Leofinance, 3speak, and Splinterlands needs some Hive to operate. On the former two, it is a lot more than Splinterlands since that deals in Custom Jsons.

The layer 2 can break off, use the open source code to create their own chain that will retain interest and hype.

They could but how many applications have the ability to not only create their own chain but keep it secure. At the same time, how do they develop upgrades to their chain while also having to develop their application.

Notice the problems that Ethereum had with the blockchain forking this week and they have some of the sharpest blockchain minds around. For some reason, people think this stuff is easy.

If you keep the base blockchain out of sight the token price goes to 0

It is impossible for Hive to go to zero if there is any activity at all. Since every action on china requires some Hive, there is a built in need for it. Hive is fee-less but it is not free.

Posted Using LeoFinance ^Beta