My view is that Hive is going to be a lifesaver for many people.
We are starting to see the attention that robotics and artificial intelligence are getting. One cannot go a week online without coming across a video where there is we see an impressive step forward.
There is an arms race taking place in both fields. Actually, we cannot really separate the two since robotics companies developing AI. However, for the sake of conversation, we will apply robots to physical with AI equating to mental.
It becomes clearer when we focus the discussion upon jobs which, in my estimation, are going to be destroyed at a rapid pace.
This brings up a major question: how do people get money to sustain themselves if we do not have a plethora of jobs available?
My solution stems from Web 3.0.
Hive Staking Is Going To Provide The Income People Need If They Prepare
The last part is key: preparation is required.
Before getting to that, when referring to Hive staking income, I am not referring to solely to the base layer coin. Instead, this is all aspects of income derived from staking any token (or asset) associated with the ecosystem. This can be al ayer two fungible token or a NFT in a game.
Whatever the asset, we need to develop yield from it.
This is what staking does. It provides a stream of payments based upon what is generated through the asset. While most are accustomed to concentrating on the speculative nature of investing, yield is going to be a crucial element of people's lives going forward.
In short, my belief is that staking income can replace the money people get from working. Income capital is going to diminish in many fields. With the rapid advancement of both AI and robotics, there might be only a few years left to prepare.
Massive Deflationary Pressures
What we are going to see are massive deflationary pressures due to technology. This is something that most view as good since they were conditioned to believe inflation bad. Well, a deflationary spiral is 10 times worse than anything the West has seen regarding inflation, including the 1970s.
People view deflation as good because it means prices come down. Of course, they only think about what they spend money on.
Here are a few things that also happen with deflation:
- asset values decline - how would you like to being $20K to closing to sell your house since the loan is more than the house is worth.
- jobs decline - when prices go down, so do company revenues. That means profits also likely follow. The solution tends to be lay people off.
- banks stop lending - when things are contracting, banks do not expand their lending. Risk of defaults go up, causing them to tighten standards. This only compounds the problem.
It is for these reasons why I believe the solution to all of this Web 3.0. The present system is ineffective at providing the money when it is most needed.
This reverts right back to the individual. What does this person do when jobs are being eliminated?
We are going to hear calls for governments to step in and fix the problem. The issue here is politicians and bureaucrats tend to make a bigger mess of things. They are too slow, go too small, and show up late to the party.
Plus, the impact, according to economic research, is minimal because government spending actually has a negative money multiplier.
Hive To The Rescue
Hive offers a pathway for people to gain some assets which can then be utilized to generate yield.
Again, we have to stress, this is not only relegated to the base layer. It can be any asset that is held which offers a stream of payment It could be from renting one's Splinterlands' deck or staking a layer 2 token. Whatever the asset, the key it to put it to "work".
Here is where the pathway becomes clear.
Instead of exchanging time for money, put the assets to work to generate money. With Hive, there is the potential to start staking assets without having to purchase. The ability to get rewarded in different coins or tokens means one can start the staking process in a week.
This is also why I state that every Hive account is a business and people need to start thinking of it as such. We can view this as being in the "digital real estate" business. We acquire assets that we can then put to work, generating income.
It is where staking capital replaced income capital.
Start Now
As stated, there might be a few years left to prepare.
The cost of generating text,video, and images is crashing. With the advancement of chatbots, we can see how an article can now be created within a few seconds. Certainly, there are some errors which requiring editing but the price that magazines and other information organizations paid went the way of the rotary phone.
OpenAi stunned many with the Sora. Again, there are still a few issues but, give it another 6-12 months and we will see the technology greatly improved. The quality will be "good enough" for most use cases.
We will not even get into the discussion about robotics and that will take many blue collar jobs. For the moment, there is likely a bit more time since it will take a few years to scale once the robots are capable of matching humans at many tasks.
All of this means the time start to adjusting is now. This is a warning. Many will dispute the conclusions drawn in this article. That is fine. The problem is what if they are wrong? What happens if technology, once again, destroys more jobs than it creates and the futurists statements to the contrary are not aligned with reality.
Government stats regarding employment will be misleading. Many developed countries are facing aging population so the technology boom is actually beneficial. However, this could quickly be eclipsed as scaling takes place.
Society will eventually adjust if the Ai doesn't kill us all (a topic for a different article). There will, however, be a period of transition where mass disruption causes a host of issues. Unfortunately, this is going to fall upon those least able to weather the financial storm.
Again, people will call on governments to fix the problem, ironic since they are facing their own. Confidence in government is waning and will face collapse going into the early 2030s. It is likely we see many governments implode over that period, only magnifying the problem.
For those who are confronted with the possibility of losing your incomes, which is most, then it is time to start considering how to alter that.
Hive offers the opportunity to build one's staking income. This is a path to insulating oneself against what is coming.
To me, that means getting started now.