The Only Way To Boost The Price Of HIVE Is To Increase Organic Demand For It

The COVID-19 crisis has finally ended the decade-long global economic growth period. Bitcoin seems to be behaving like any risk-on asset. It's simply too young, immature and lacking in adoption to be relied upon as a safe haven asset. Because the entire cryptocurrency market follows Bitcoin, I think it is more likely than not that the global depression will not be a boon for the cryptocurrency market. Not even the mining reward halving will do much for the price of Bitcoin so long as the global economy is in a depression. That's because while the influx of new bitcoins is cut in half, that influx is quite small to begin with on an annual basis. The mining reward halving will cause Bitcoin's stock-to-flow ratio go from 25 to 50, which means that the ratio of new bitcoins minted in a year as a proportion of entire stock goes from 4% to 2%. That would, of course, cause the price to go up should the demand stay constant but I'm predicting it won't stay constant. Too many investors who currently hold Bitcoin will get laid off for them to be able to continue HODLing.

The economy will recover at some point. It always does. It may take a couple of years. Vaccines and effective treatments for COVID-19 will be developed. The financial mess will be sorted out, and after a restructuring of economies, world economy will start growing again. The question is, however, what will happen to the stock-to-flow based price model of Bitcoin.

https://www.youtube.com/watch?v=ZICjNGAmXZc

An explanation of the stock to flow model

I think there is a very good chance the model will be broken. The model looks at things only from the supply side. I believe the global depression that we are entering now will wipe out the demand side for the time being. Is Bitcoin done for? It's difficult to say for sure. But if Bitcoin's safe haven/store of value narrative is invalidated, it's hard for me to see what's left to prop up its value during this global economic downturn.

Yes, Bitcoin is still hard money, pseudonymous, unconfiscatable and cannot be manipulated by central banks. But its lack of adoption is very worrying, which leads me to think that HIVE has the best chance of all cryptocurrencies to appreciate. That's because it's got tens of thousands of real people using it for purposes unrelated to speculation. But I think the days of coasting on Bitcoin's continuing appreciation are numbered. The best way for HIVE to reach a higher organic value is to build what's missing from its infrastructure and focus on attracting commerce to the platform. Splinterland leads the way. Splinterlands is hands down the most promising of all projects on Hive (I'm guessing it will be ported to Hive at some point). It does not even use the reward pool but it creates demand for Resource Credits by attracting players who use the chain.

The uncensorability of Hive is its most important selling point. Now that the entire crypto space has been talking about us for the last month or so, we must continue to drive home the message that for anyone in crypto, the natural choice for a social media platform is Hive because it's a blockchain-based uncensorable platform. This is where 3Speak can shine because it has plans for combining the efficiency of centralized video hosting to backing up the videos on a decentralized storage medium. It's the niche content creators whose un-PC content is facing deplatforming that Hive-based apps should target. There are plenty of those people and they all hate how they're being treated by the likes of YouTube. I think there's a very good chance for Hive to gain millions to tens of millions of users if Hive-based apps are successfully marketed. That would provide organic support to the price that is completely unrelated to Bitcoin.