Many have made the comparison between an ecosystem such as Hive and a nation. While there are some stark differences, I think the overall mindset is valid.
We have the opportunity to forge something completely new. This means we are constructing everything from scratch. Naturally, this is not an overnight process but it can be very rewarding in the end.
One of the major breakthroughs of cryptocurrency was the ability to monetize peer-to-peer transactions. This means that we can operate in a decentralized manner while being able to conduct commerce. Hence, it is a now a part of the protocol.
Having a currency allows for a full blown economy to develop. Like any other economy, it can operate on its own. There is no need to be dependent upon anything outside of the system.
Of course, this depends upon what resources are available. Few countries can be completely self-sufficient thus why they engage in trade. Nevertheless, each basic economy is on its own while being intertwined into something larger. I view what we are constructing here in a similar manner.
Fundamental to all economies is the ability to earn and spend. This ultimately is tied to production, something that expands over time as economies improve. Based upon this production, each unit held has value. Thus, we all are stakeholders in the economy we find ourselves in.
One of the biggest problems with the present system is how distribution occurs. Most are finding the ability to earn lacking. We know there is a tremendous wealth inequality that resulted from a system that rewards those at the top. Even now, with the global economy collapsing, the Fed is seeking to bailout the billionaires while mainstreet takes it on the lip again.
Hive is an exciting development since it does provide people with the ability to start building and expanding. Anyone can sign up and begin the process. At present, there are a number of applications where one is rewarded in HIVE as well as other tokens.
If one thinks of this in terms of a new settlement on olden times. What happened when an area was settled? Businesses were established to provide the goods and services that the community needed. Many went into farming because, after all, people need to eat. There was often a general store where one could purchase necessary items. A blacksmith showed up as well as a sawmill. Construction took place erecting buildings that housed the different businesses that were needed. Schools, churches, and saloons all were desired by the members of the community.
Now, comparing that to Hive, we see how we are starving. There is no general store or food to be purchased. Sure, we have a currency that people can get yet no place to spend it. To get the basic necessities, each member of the community has to go to another town. This is a leak in our economy.
We also see a difference in how we think. This applies to the value we assign it. HIVE is worth X in relation to fiat currency. The question is why do we not do that with our native currency? We know the answer in the fact that the utility of the native fiat currency is there. A dollar is not worth 1.5 GBP unless we are traveling. Instead, 2 of them gets us a gallon of gasoline.
How differently things would be if we viewed 8 HIVE being worth 1 can of tuna fish.
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Economies are circular with on and off ramps. Certainly, the best economies are able to reach beyond themselves. However, at their core, they are self-contained ecosystems. The way to increase the size of them is to increase the productivity.
This is our challenge on Hive. We are at the point where everything needs to be increased. Each of us have the ability to bring more to the community. There are developers, who are akin to the construction personnel, building many different applications. Each of these fills a void in our community by offering the members options.
Production is the barometer that needs to be focused upon. Many feel it is the number of people. The United States is the largest economy in the world, yet it is not the most populated. China and India have a lot more people. Of course, China will likely pass the U.S. in the next 5 years but India is still far behind. In fact, countries like Japan and Germany dwarf the Indian economy with a fraction of the people.
How much productivity is taking place on Hive? That is the question it will always come back to. For the HIVE token to have greater value, our economy needs to grow. That means enlarging our settlement and constructing the pieces that are needed.
Commerce, entertainment, and education all can be provided here. Over time, we can see the opportunity for each to increase the productivity of the "Hive-nation" as more offerings are presented. This will establish a new model under which we all operate.
The next decade is going to see even more of our world convert to digital. For this reason, it is beneficial to establish the idea of building an economy around out token. The fact that it exists means the opportunity is there.
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