Markets — whether they be for walnuts, crypto or sheets of plywood — ultimately are a representation of the intersection of a willing seller and a willing buyer.
As the broadest generalization, when there are more buyers than sellers, the price of "whatever" goes UP, and when there are more sellers than buyers, the price of "whatever" goes DOWN.
Which leads to one of the core issues of market dynamics: "The Compelling Reason to Buy."
Sure, there are compelling reasons to SELL, as well... but in order for demand to exist, you have to have "whatever" people really want. If you don't have that, it doesn't really matter what you think "should" happen.
But these things are not always clear and cut out in cardboard!
For example, you can sometimes get lots of people to show up and "want" your "Whatever it is" when you're offering it for free, as some kind of promotional gig. Suddenly, everyone thinks your stuff is "amazing" and they flock around to get their hands on some!
As always, there's a catch.
Most of those people don't actually want your "thing" you're offering, except to the extent that they can immediately turn around and sell or trade that thing for something else. And then we end up right back at where we were at the beginning, with more sellers than buyers, except now we have a situation in which the sellers have no investment in getting the best possible price... since they paid zero.
So why would I want to buy a cryptocurrency? Where is the compelling reason to buy?
"Well, I expect it to go UP in value!"
And then what? Do you hang on to it as wealth, or do you just turn around and sell everything, thereby setting off the whole "more sellers than buyers" cycle, once again?
At the moment, I have a compelling reason to actually own HBD, and a reason to buy more because I like the idea of the 20% interest payments, and I like the idea of having "cash money" (or equivalent) parked somewhere where I can earn a stellar rate of return.
Because — let's be honest here — my local bank isn't likely to give me more than maybe a 1% interest rate on a savings account.
Most of the time, when I look at "reasons to buy" in the crypto world, I turn very old fashioned.
I want to know what the actual product is. Because — as far as I am concerned — the token is not the product. The token is merely the "fuel" that makes the product work. So... what IS your product?
Which, in turn, brings us back to Hive and why we are here. Hive does have a "product" as it were, in the form of a publishing platform, with all its attendant specialized niches. There is "something there," besides some slick salesperson insisting that Hive tokens are a great investment.
Of course, the Cryptosphere is a strange a fickle place... and sometimes so riddled with gamblers and speculators that "a great promise without a plan" sometimes performs better than something with solid fundamentals. Something I personally struggle to wrap myself around!
But I don't feel deterred, and plan to continue building my Hive savings!
Thanks for coming to visit, and do leave a comment if you feel so inclined! This is "social" media, after all, so it helps everyone when we make the effort to BE social with our fellow content creators!
=..=
Posted with proof of brain