Whales the Save - How Hive Can Thrive
I have been thinking that what would help Hive make the leap in popularity is to have more Whales. We need more people who own extremely large stakes of Hive for several reasons. I don't necessarily mean that we exclusively need Whales. Orcas and Dolphins have a part to play in this as well. Except I couldn't think of a good title.
One way in which having more Whales on Hive would benefit the community is that these accounts can scoop up a larger portion of rewards. One of the problems we have at the moment is that too much Hive is sent out to exchanges. This is understandable to some degree. The world is hurting for money these days. People need money to survive. So, they are selling their Hive rewards and even powering down to make ends meet. However, they will eventually reach a point where they no longer get meaningful rewards and will no longer have stake to power down. Having more Whales, Orcas, and Dolphins would concentrate much of the reward pool. They would keep a large portion of new Hive and be able to distribute the remaining portion through curation.
Given their proven ability to accumulate Hive, we could count on Whales to hang on to their new Hive rewards, keeping them out of exchanges. In other words, they would lock up much of the reward supply. Even inflation would be largely absorbed by the more more affluent Hivers.
By absorbing a large portion of the rewards supply, it becomes necessary to buy Hive from the exchanges for anybody looking to power up in a hurry. This would reduce the amount of liquid Hive on the exchanges.
Whales (et al) are also able to do things that smaller accounts can't do. For example, they are able to sell large quantities of Hive OTC. This type of sale generally does not affect the market. It allows for large transfers without creating a dump in price. Small accounts don't have that ability. Technically, OTC can be done, but they don't have enough Hive to individually move the market.
Another capability that Whales have that others don't is similar to emperors of old who could build extravagant palaces like the Forbidden City in China, Taj Mahal in India, Versailles in France, and the Winter Palace and Grand Kremlin in Russia? There are some things that having a massive amount of wealth allows you to do that most people cannot. For example, there is the Bill and Melinda Gates Foundation that gives out huge grants for all manner of charitable causes. The Duke Endowment is able to provide grants and services to communities in North Carolina and South Carolina. They are able to give away so much while still growing their endowments every year. Whales would have the means to undertake great (as in massive, not as in cool) projects that others would struggle to cobble together.
The simplest factor in all of this is that by having many large accounts, Hive would attract more users. First, having many Whales would be proof that it is possible. Secondly, having a large number of people who can dump a big vote on your post is encouraging and likely to keep new people active. It's quite deflating when my posts receive a dozen votes worth 0.000, honestly. I imagine it's the same for new Hivers.
If Hivers are able to earn more than they need because the price of Hive is higher, they will sell less Hive on the exchanges. For the price to go up and for people to be able to earn more from their work, we need to lock up as much Hive in as many large accounts as possible. Although we should be careful to not have one massive account like we did with Steemit, Inc.
It's important to power up as much as you can afford to move up the ranks. We need Dolphins, Orcas, and Whales in large numbers to make the economics of Hive more workable. It should be possible for Hivers to earn an income and for affluent Hivers to continue building. These aren't mutually exclusive goals. The more scarce Hive is through accumulation and rewards pool capture, the better it is for the Hive economy and those who need Hive to earn an income. What do you think?
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Originally posted on Travel Write Money. Hive blog powered by ENGRAVE.
