Never trust the price

This vlog is inspired by a discussion that I had with my friend @ph1102 about the price of Hive and other crypto currencies.

I can't help to see that there is a correlation between the price of hive and the activity on the blockchain. A lot of people tend to stop posting when prices are going south.

Let's have a look at USD

Prices of cryptocurrencies are often expressed in USD but I think that it's totally wrong to do that. Why? Because we can't trust USD. Between 1970 and 2020, USD lost about 70% of its buying power. In addition to that the money supply of USD has multiplied by 4 within the 20 years! What do we know about prices? They depend on the demand and the supply of a good. It's the same for a currency like the USD.

When we look at this track history and with the continuous printing of new money the same tendency will even get more pronounced in the future.

We should stop to compare crypto currencies with USD. In my eyes its the wrong peg, a peg that can't be trusted.

The most honest currency

When I look at Bitcoins, I can find out exactly how much supply there is and I know that there will never be more than 21 millions BTC in circulation. On the contrary, I believe that BTC will be lost on the way because of lost wallets or keys. For me BTC is the most honest money around. Because of this honesty it will become very demanded and everybody will hoard btc in the future. Therefore it won't be able to be considered as a currency. People always get rid of the bad money first and they keep the good money like BTC.

What about Hive?

Even if at the moment the inflation rate of hive is around 8%, we should know that in the code of the chain there is a mechanism that reduces the inflation by 0.5% per year. This means that there will be less and less new hive printed. The supply will be slowly but surely reduced. It will also mean that it will get more and more difficult to actually earn hive.

Let's stop to think about prices. When I look at the potential of hive I want to make sure that I can accumulate as much as possible. Even if prices go down, for me 1 hive is 1 hive and I don't care about how much worth it is in USD. In the long term I want Hive and not USD!