I know I've written about those Bitcoin blues the last couple of weeks. Those are definitely still hanging around. Our favorite grandfather of the cryptocurrencies is down fifty percent from it's high just last October. It's enough to get even the most die hard Bitcoin fan a little bit depressed! Do I think that it's down for the count? Absolutely not, however, the cycles have completely changed making the future a lot less predictable. Bitcoin will push to new all time highs, the only big question is when?
I have yet to really discuss my case of the Hive blues. I recall just over a year ago, in January, it was over sixty cents. Talk about the good old days... But today we all had a bad day seeing Hive down at $0.066. Part of the drop was due to a decrease in the price of BTC which went down around two percent, but Hive dropped in excess of five percent. There has been some recovery, but not nearly as much as BTC.
From coingecko.com, Hive over the last day
Below I've included the chart for Hive over the last year, you'll notice first off that we're down 80%. That's not from the $0.60 level, which would be unfair to use as a benchmark as it was likely the result of an artificial price manipulation.
From coingecko.com, Hive over the past year
Recently, as I'm sure you all noticed, Hive posts stopped paying out in HBD. Now it's paid in liquid Hive when you elect the 50/50 option. Many were on unclear as to why that happened, and some still are. It was automatically programmed into the code once the debt surpassed twenty percent. That increasing debt does suppress Hive prices and the more spending we approve the higher the debt will climb.
Once the debt hits thirty percent, it will automatically stop the peg of HBD to one dollar. That will spell all sorts of trouble for our blockchain, and I'm hopeful we can all work together to prevent that day from coming. We need to cut back spending, that's the bottom line.
I enjoy Hive, and have been blogging for years now. As the price has decreased I've seen far too many people vanish from the chain, people who I have enjoyed chatting with over the years. I would hate to lose even more...
As for Bitcoin, I discussed it earlier but here are the charts for the last day and year since I did refer to them in my comments:
from coingecko.com, Hive over the last day
from coingecko.com, Hive over the last year
So what can we do to decrease Hive's debt? We need to start being very careful about what DFH projects we support. Each one is adding to the debt. A good start it to support the Return Proposal which is the floor level any proposal must pass to get funded. The more votes it has the better. It ensures that only quality projects have any shot of getting funding. It might be a good idea for the witnesses to consider dropping the interest rate on HBD savings as well, as it also adds to the debt. I'm not saying to cut it to zero, but a cut in the rate would slow debt accumulation.
The other day 
As the former owner of multiple businesses, I can attest debt is a noose you don't need around your neck. We need to slow it's accumulation. Please feel free to chime in. I would love to hear your thoughts on the subject as well. What do you think can or should be done to save Hive?
That will wrap up this Thursday's post! Please feel free to leave any comments or questions below, and thanks for all of your support. It's greatly appreciated. Have a great day everyone!
References:
https://www.coingecko.com/en/coins/hive
https://www.coingecko.com/en/coins/bitcoin
Disclaimer
I am not a financial planner and this isn't financial advice. Please always do your own research before investing your money. You worked hard enough to earn it!
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