I think delegation is actually one of the big factors that alleviates some of the issues you talk about here. Yes, the price of Hive could be higher making the barrier to entry next to impossible for some people, but we also have the whole delegation thing. Sure, not every person is going to be so benevolent, but there is a point where delegating out a couple hundred HP here and there isn't that big of a deal. I get that's a small scale solution, but it definitely makes a difference.
You are viewing a single comment's thread from:
Delegations are an interesting angle to pursue but you're missing out on key points in that scenario. Again, the token price doesn't affect the fee to use the chain. In this case the fee to use the chain is a non-zero value, meaning those "free delegations" you're talking about aren't free. There is a very real financial incentive to not give the free delegations anymore because people are paying for RC delegations. Once that market becomes real the entire environment changes and we can no longer employ this outdated thinking.
Yeah, okay, I guess that is true, it's just hard to believe it is possible right now. Especially given the fact that so many people were promising RC Delegations were going to be big money makers. So far that just hasn't been the case. In your scenario where Hive is a top tier token again, I can definitely see it.
Right but what if Hive isn't top tier at all?
What if the market cap of crypto is $10 quadrillion dollars and Hive has a cap of $1T?
That's why we have to frame things in terms of absolute scope of USD and relative scope of crypto.
It was also hard to believe that Bitcoin could be $60k at $7, which is where Hive is now in terms of market cap.
Can Hive handle an x10000 gain? lol
Okay, I probably should have worded that differently. I was just going on the assumption that the token price was up around $2000 per token and we had masses of people trying to get on the chain. I understand what you are saying. HIVE may indeed never get that traction and be top tier. In relation to the USD, even a bottom tier token could be pretty decent if the whole space blows up.
Yeah that's perfectly fair because it was the exact example I gave in the OP.
So Hive costs $2000 per token.
How much does it cost to use Hive in this scenario?
The answer is that we have no idea what the demand to use the chain is.
We only know the demand to hold the token sits at $2000 vs the supply.
We can assume the demand to use the chain is quite high but we really have no idea.
We also have no idea how much bandwidth we can supply at that level or what the bottlenecks are. These are all things that nobody talks about or even anticipates, and I find that alarming.
Yes, your assumption that the price is $2000. That $2000 number was based on BTC and HIVE maintaining the same ratio(?) to each other. If that were the case, wouldn't the bandwidth and demand be virtually the same?
Hm the assumption is that one day in the future Hive has the same demand and market cap as Bitcoin has today.
So no there is no ratio involved between the two.
Bitcoin could be any value at that time, or not even exist.