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Realizing unrealized value

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@tarazkp
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4 min read

I don't know where the markets are going, but I am always confident that eventually, HIVE will find its way and price will better reflect value.

Last night I was reading a post by @edicted who mentioned that every 1 cent move in the HIVE price shifts his account by 2200 dollars up or down, which means in the last two days he has made a technical 28,600 dollars in unrealized value. However, to actually "make" that he would need to sell, which means that if it went up another 13 cents, he would then have lost 28,600 in potential value.

This is the game of course :)

But this and all of the other factors aside, what I think is interesting to note about Hive value is that the majority of people who were here before and through the bear markets, survived. Not only survived, some thrived. For me, the bear markets were the best time to knuckle down (people don't use this term often anymore) and participate more.

The highs prior were exciting, but all they really indicated was the potential of blockchain and crypto in the wider mass markets. While a lot of people fear the bear, what for me is valuable to consider is that it was during that time that most of the development has taken place in the industry, where people flush with new crypto wealth and those looking to capture it, innovated and built, forked and maneuvered themselves in order to prepare for the coming of the bull.

DeFi and the expansion of NFT drive are obvious standouts in this regard, with DeFi making it very clear that the days of the financial industry and the economy at large as we know them to be, are numbered. NFTs have done a similar thing for the middlemen who profiteer off creators, it will have the traditional and comfortable ones, scared.

These groups aren't idiots, they can see the writing on the wall chain, but their models constrain them and they will find it hard to follow the growing trends without fundamentally changing their business models. This scale of change to players in established industry is very difficult, as not only do they have to keep their shareholders happy, they will be opening themselves up to new players in the market who have more experience and the skills to move faster than they can. At some point though, all will be forced to try and pivot, with varying degrees of success and failure, however it is unlikely any of the larger players will retain all they have today.

What this means is that, while in the past the failed were absorbed by the survivors to concentrate value in fewer hands, now there is opportunity for smaller and newcomers to chip away at the largest, whilst feasting on the bones of the failures. This decentralized economy brings in far more threats to the established than they want to admit and, far more than we are crediting ourselves with introducing, but we won't know until after the next bear market what we have accomplished.

This is because once the bull runs its course and empowered hundreds of millions more, leaving them with greater wealth and a hunger for more crypto, the devs will come back from holiday and get back to work. The difference will be that there will be comparatively far more wealth available to support development and far more talent looking to capture it. Plus, this group isn't starting from scratch, it is going to be building upon the shoulders of what has already been developed for both the financial sector and the social, with the former being driven hard by the latter.

In this regard, Hive is well positioned to capture some of the users who are looking to add value during the bear and what they will find is what many of us have, being on Hive isn't about surviving the bear, it is about thriving during it. Once people are here and participating socially, a lot of what they have been doing on the markets and interacting with as an individual, start to connect together and make sense as a wider industry, one that supports users and gives space to investors and developers to collaborate and build for the future.

The value proposition of Hive is immense, yet it depends on how we look at the chain. Many people look from the community rewards perspective and what the value of their wallet on Hive is, but the real value is when it enables all of the other things we are doing and becomes a node for discussion and connection. This isn't just for the discussion of course, it is also as a space to build upon and through things like the HAF framework will become easier and cater for more diversity. Add in security, scalability and free transactions, what's not to love?

As said, I don't know where the markets are going, nor what the price of HIVE will be in a month from now, let alone a year or ten, but the industry is emerging and taking form and Hive could play a pivotal role in shaping what at least part of the future is going to look like. Things are looking good, as even if a bear rains on the price, the parade will continue and there is plenty of road ahead.

One cent up might buy a TV. One dollar up a house. Let's build homes.

Taraz [ Gen1: Hive ]

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