HIVE in a Super Cycle

about 3 years ago (Edited)

Some of you have probably noticed that I keep on throwing this super cycle theory around for a while, through my blog, and I'm doing that because I am as well bombarded with information regarding it, from all sort of sources and it makes so much sense for the current stage the crypto market is in.

Gradually, we get to see Bitcoin and other blockchains getting adopted in real life and that's awesome. Decentralized blockchain technology has been offered to us by Satoshi Nakamoto to be put to use and not just generate a bunch of Bitcoin per mined block that should end as a speculative asset.

So, what is a super cycle?

A sustained spell of abnormally strong demand growth that producers struggle to match, sparking a rally in prices that can last years or in some cases a decade or more.
source

A couple of example of assets that have entered a super cycle over a decade ago are Apple and the S&P 500. If you have a look at their graphs you will notice that as of 2009 those are in an almost continuous uptrend. Corrections have certainly occurred on the way up, but the overall trend has aimed at the sky and climbing towards it.

How long these super cycle will last? I guess nobody knows... Is crypto in a super cycle? Hard to know, I guess the next few years or so will tell us. What's worth noticing though is that there is already a sort of decoupling between the plethora of crypto projects, where we can say that some are in their own cycles.

Most certainly that if Bitcoin should fell from the sky, the majority will follow, but meanwhile we have Solana, Cardano, Ethereum, Elrond and others that seem to be playing in a different league. Why? I'd say its their fundamentals pushing their prices up and not pure speculation. It remains to bee seen if that applies in the case of ADA as well, but I'd say it's not just fireless smoke what happens with ADA.

For an asset, or an asset class to enter as a super cycle there has to be a very strong and sustained demand and for that to occur usually has to be a foundation on which that demand should be built upon. For Bitcoin to enter a super cycle we will likely need many more countries adopting it as El Salvador did, or at least few more financial giants buying it off the market and holding it "away from the market" for many many years.

Pretty much the same would apply to Hive and the way I see it Hive does have the pedigree to enter a super cycle. It is a relatively new projects that has already exceeded its speculative nature. It is no longer a bet, but a working product with ramifications in social media, blogging, gaming and DeFi. When you buy HIVE off the market you buy the token of a blockchain hosting several good working apps.

Let that be clear.

The demand for HIVE, pushing it into a super cycle, would be more than justified at this point. Despite being an inflationary asset, according to recent stats from @penguinpablo seems that there's tons of liquid HIVE leaving exchanges and there's a few reasons for that to happen. Numero uno imo is Splinterlands.

You have to have RCs to be playing the game, I know that from what I read as I'm not a Splinterlands gamer, and in order to harness RC you simply have to buy HIVE, if a totally new user of the blockchain.

As the price is going up there will be many other incentives for investors to put their hands on HIVE. The simple act of curation, which can take less than 10 minutes a day can almost earn you a living with the right amount of HP, not to mention the interest rate you can get on HBD.

So, is HIVE worthy of a super cycle?

You bet it is. These are just a bunch of reasons that I find suitable for justifying a super cycle for Hive, but as the devs keep on building on the blockchain the demand shall increase. It's just a matter of time imo until HIVE enters a super cycle and that volatility we've had so far will be a thing of the past.

@taskmaster4450 has discussed much more in detail about the future of Hive and I would definitely encourage you to read his posts. This thing is no longer just a blogging blockchain, although that's what I'm using it for, on a daily basis. The development is real and the foundation has been laid. The question regarding HIVE and a super cycle is no longer of "if", but rather "when" and I'd say it's just a mater of years, not too many, until HIVE enters its super cycle...

Thanks for attention,
Adrian