I've Got a Bad Case of the Hive Blues...
I know I've written about those Bitcoin blues the last couple of weeks. Those are definitely still hanging around. Our favorite grandfather of the cryptocurrencies is down fifty percent from it's high just last October. It's enough to get even the most die hard Bitcoin fan a little bit depressed! Do I think that it's down for the count? Absolutely not, however, the cycles have completely changed making the future a lot less predictable. Bitcoin will push to new all time highs, the only big question is when?
I have yet to really discuss my case of the Hive blues. I recall just over a year ago, in January, it was over sixty cents. Talk about the good old days... But today we all had a bad day seeing Hive down at $0.066. Part of the drop was due to a decrease in the price of BTC which went down around two percent, but Hive dropped in excess of five percent. There has been some recovery, but not nearly as much as BTC.
From coingecko.com, Hive over the last day
Below I've included the chart for Hive over the last year, you'll notice first off that we're down 80%. That's not from the $0.60 level, which would be unfair to use as a benchmark as it was likely the result of an artificial price manipulation.
From coingecko.com, Hive over the past year
Recently, as I'm sure you all noticed, Hive posts stopped paying out in HBD. Now it's paid in liquid Hive when you elect the 50/50 option. Many were on unclear as to why that happened, and some still are. It was automatically programmed into the code once the debt surpassed twenty percent. That increasing debt does suppress Hive prices and the more spending we approve the higher the debt will climb.
Once the debt hits thirty percent, it will automatically stop the peg of HBD to one dollar. That will spell all sorts of trouble for our blockchain, and I'm hopeful we can all work together to prevent that day from coming. We need to cut back spending, that's the bottom line.
I enjoy Hive, and have been blogging for years now. As the price has decreased I've seen far too many people vanish from the chain, people who I have enjoyed chatting with over the years. I would hate to lose even more...
As for Bitcoin, I discussed it earlier but here are the charts for the last day and year since I did refer to them in my comments:
from coingecko.com, Hive over the last day
from coingecko.com, Hive over the last year
So what can we do to decrease Hive's debt? We need to start being very careful about what DFH projects we support. Each one is adding to the debt. A good start it to support the Return Proposal which is the floor level any proposal must pass to get funded. The more votes it has the better. It ensures that only quality projects have any shot of getting funding. It might be a good idea for the witnesses to consider dropping the interest rate on HBD savings as well, as it also adds to the debt. I'm not saying to cut it to zero, but a cut in the rate would slow debt accumulation.
The other day @trumpman pointed out that right now we are funding two front end project through the DHF to the tune of around 1000 HBD a day. His argument being that why bet on two racehorses, maybe we should consider cutting it to one? You can see his post at this link.
As the former owner of multiple businesses, I can attest debt is a noose you don't need around your neck. We need to slow it's accumulation. Please feel free to chime in. I would love to hear your thoughts on the subject as well. What do you think can or should be done to save Hive?
That will wrap up this Thursday's post! Please feel free to leave any comments or questions below, and thanks for all of your support. It's greatly appreciated. Have a great day everyone!
References:
https://www.coingecko.com/en/coins/hive
https://www.coingecko.com/en/coins/bitcoin
Disclaimer
I am not a financial planner and this isn't financial advice. Please always do your own research before investing your money. You worked hard enough to earn it!
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Looks like I will be dusting off my YouTube and IG accounts as this trend continues. Meanwhile, Discord is adopting strange new protocols.
I hope #sgscommunity has a plan B, I'd hate to see this close knit community break up.
!PIMP
I really would too, not sure what the plan B is though!
I out of PIMP for the day, but in the meantime:
!PIZZA
!LADY
!BBH
!LOL
I thought the last HF was supposed to help with this? Yet the price is still going down. Also, I'm a little confused when you say "the more spending we approve the higher the debt will climb". Is it a debt that needs to be paid? I thought all this stuff was just funded through daily inflation, but maybe I'm mistaken about that? Whatever it is I hope we can get it figured out and fixed!
DHF is a sham and needs to be axed.
It's been abused for far too long. Big changes are needed if they want to save the chain, but someone with deep pockets is needed to make the changes. Whales often seem unwilling...
Hive is done! The whole purpose of doing the hardfork from Steemit to Hive was to stop the whales calling all the shots. Well it turned out it was just a bunch of asshurt whales that weren’t part of the original click, and did the same shit they complained about. It just took a little longer for everyone to lose faith. Many of the whales cashed out already and are gone. It’s one big circle jerk of a handful of people. They never tried to onboard people, they just wanted their close knit crew. It’s a shame, because there are several people that have left that I enjoyed reading. Luckily I’m close to a handful of people and we text and call still.
I agree, so many whales have been cashing out, and there are so few of us left who actually chat. The big circle jerks is where all the money goes.
We definitely need to stop bleeding money.. I haven't seen Trumpman's post yet but I'm fixing to check it out. I already voted the return proposal
Good, more people need to vote for it! Bleeding money only leads to one end game, game over...
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Why change the status quo when you get paid a day rate and have no fixed metricised deliverables 🤣
I have unvoted everything apart from the DHF proposal.
We all know that HIVE falls at least the same %age each time as BTC but never increases with the same %age that BTC does.
I thought things were going to be done after HiveFest. I mean RoelandP wrote some post from a new account and I can't even find it.
Nothing will change and the well will be bled dry.
Difficult times for sure my friend!🙄
Just as a rising tide lifts all boats......Bitcoin dropping is sinking all Alt coins!!😕
Definitely some good thoughts!👍
I mentioned something about social responsibilty on hive the other day and the return comment was 'what social responsibility?' which fairly floored me, because it's that kind of self interest that will just see us start to circle the drain. I can only do what I can do - I stick to what I'm good at - and I hope that those that are really good at the bigger picture can do what they can do. But that's a bit of me seeing the good in people, and it seems mroe and more I can't really turn a blind eye to the self interest here and the behaviour of the whales. Once I was told that if I wanted to change things, I could become a whale, and for a while there I thought that was true, and it was my fault I hadn't accumulated enough to earn enough that I could help make decisions about this place and have influence. Then I realised that too was absolute bullshit - it's a moral responsibility for those with the power aka fat wallets to make good decisions via influence for the chain. But, the circle fucking jerking. Honestly. We all see it. We've always seen it.
Engine just posted a really good post suggesting we lower the ininterest rate for HBD and raise it for staked HIVE. That could be an interesting change that might drive people to buy and hold HIVE.
A friend of mine made a good comment about that… did you notice that both front ends receive money from the dhf and when you open both uou need to scroll down to see one mention of hive in the bottom? The association with hive is weak when you open the websites… becaude of thay many people when join dont understand that they are doors to enter hive and not something detached.