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Is Investing in DCity Undermining the Price of Hive? by revise.leo

View this thread on: hive.blogpeakd.comecency.com
· @revise.leo · (edited)
$0.60
Is Investing in DCity Undermining the Price of Hive?
I've held off posting about this as I know there are lot of Dcity fans on Leo, I don't like singling people out and also because it's everyone's right to do what they want with their Hive and I'm sure there are accounts creating more sell pressure, but I've got to ask the question: 

Is investing in Dcity undermining the price of Hive? 

Below are @gerbers transfers of Hive to exchanges....around 60K a month/ 750 000 a year, around $100 000 per annum at current prices, quite the sell pressure!

![Screenshot 20210123 at 22.36.41.png](https://images.hive.blog/DQmadyFe9nou2vNGq2daKjMeVTu4kSv3iG4uchu2Fi9TSBC/Screenshot%202021-01-23%20at%2022.36.41.png)

![Screenshot 20210123 at 22.36.45.png](https://images.hive.blog/DQmVvJpnvLmqsbiVi1fkZx9Zd9tMQFMjZeHM3jBKDngTLTB/Screenshot%202021-01-23%20at%2022.36.45.png)

![Screenshot 20210123 at 22.37.03.png](https://images.hive.blog/DQmbwx8e4Aj1R76cyTKpJznRrcHBZy9x1LEmYdfdBXhtyZj/Screenshot%202021-01-23%20at%2022.37.03.png)

![Screenshot 20210123 at 22.37.24.png](https://images.hive.blog/DQmavjh4ix6Q9z2xpoAUEZ9Mr4pYqXyMqfTw5v1QTK6dRbw/Screenshot%202021-01-23%20at%2022.37.24.png)

![Screenshot 20210123 at 22.37.57.png](https://images.hive.blog/DQmPdqnaXU8eYwnCt5CRwvQ5ihvYwhmTGepRgXQMj4gcLiA/Screenshot%202021-01-23%20at%2022.37.57.png)

![Screenshot 20210123 at 22.38.13.png](https://images.hive.blog/DQmapimxWwyw7o2rfdeqPWQwLdyKUgmA1QDHk6SqBiHWGcK/Screenshot%202021-01-23%20at%2022.38.13.png)

While he doesn't maintain an huge Hive stake....  

![Screenshot 20210123 at 22.41.26.png](https://files.peakd.com/file/peakd-hive/revisesociology/ber3iNZx-Screenshot202021-01-2320at2022.41.26.png)

I can't bring myself to invest in the game because I can't get my head around being rewarded in Hive while the guy rewarding me with it is creating sell pressure for the token he rewards me in by selling so much of it!

And it's the very token that secures the network on which your DCity NFTs are held on too! 

Swapping Hive-Engine NFTs for Hive while the guy printing the NFTs is selling Hive, which secures the network the NFTs are held on, not for me! 

Compare this to the huge amount of Hive held by Leo and Splinterlands for example, and most of the T20 witnesses. It's that hold of significant amounts of 'security tokens' if you like that gives me the faith to invest in them. 

(NB as point of fact I don't vote T20 witnesses who don't have a significant stake in the platform either). 

Actually I don't feel bad pointing this out, it's all on the chain as a matter of record and I fully support the right of anyone to sell their Hive if they so choose and when they choose to do so, but I just can't personally support a project that's generating so much sell pressure. 

If @gerber was holding a bit more Hive I'd have a bit more faith in the game! 

### Maybe I'm being too purist, so post your perspectives in the comments and convince me this doesn't matter! 

Or convince me it's actually a positive thing! 

Am I just way out of touch kind of thinking that it's a kind of 'duty' to hold Hive Power? 

NB I think that because the memory of Justin Sun is still pretty raw, and the only way to prevent that happening again is for all of us to hold Hive, not sell it. 

Or maybe I'm wrong about that too? 

It's quite possible. Perhaps we're now heading towards a situation where the 'Tribes' and 'Dapps' are independent of Hive, but it's just that we're not there yet, are we?!? 

NB I've tried to phrase this so it isn't an attack on anyone investing in DCity, so please don't get too acerbic in the comments!



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@costanza ·
I always go by blame the system, not the players. I never played Dcity and I'm not planning to anytime soon and I have no clue who @gerber is. If he's making that much with the game I guess someone has to have bought that hive (or the Hive Power to generate that much) in the first place for him to do so. I guess the reality is that Hive just doesn't have all too much of a use case right now. You can't expect anyone even witnesses to hold Hive just to hold Hive and being dumped on constantly. From what I understand, it makes sense for Splinterlands to have a lot of HP to provide the required resource credits for their users who just want to play the game without being required to invest in Hive but that only goes that far. Aside from that, it's mostly the circular 'buy tokens to get more tokens' loop.

At least LEO has actual advertisement revenue which is used to buy and burn LEO even though the rate at which is being printed is outpacing that like crazy at the moment since the price has gone up so much.

I do see tribes / dapps becoming more independent with Hive being mostly a temporary payment method to get in and out of in the short term.

Despite everything, I'm still tempted to load up some more on Hive at current prices. The tech itself works really well and is ready for adoption aimed at regular people and not just whales. In the end, it's all just supply and demand. It will be interesting to see how it all plays out the coming years

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vote details (3)
@eirik ·
@gerber is the sole creator of the game.

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@revise.leo ·
Thanks for the comments, I know what you mean about the circular thing. 

And of course one advantage of selling is that if you do want to load up, it's keeping it cheap! 

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@eirik ·
Funnily enough I am also waiting for more comments.

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@revisesociology ·
At this rate I'm just going to get comments wishing for more comments! 
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vote details (1)
@erikah ·
I've heard about this and am curious to see the discussion. I'll be back.

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vote details (1)
@revise.leo · (edited)
Me too, I'm a bit surprised it's taking so long already TBH. 

Needless to say I'm not anticipating a massive payout for this particular post! 

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@erikah ·
Usually I'm supporting those who are also supporting the community and not cashing out everything. This is the only way to grow together. However, I'd like to know the reason why he does that. Not that he owes anyone an explanation :) 

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@gerber ·
What should I do with hive in your opinion, hold it? How I can pay devs, designers, hostings? :)
also ~500k sold in year compared to ~28M produced in rewards is nothing. Still someone buys it and maybe powering up? that's how market works...

At the moment I have around 200k HIVE, working on different apps, providing liquidity in beeswap, market making bots on engine to keep high liquidity on some tokens. I spent 40k$ in hive or btc from sold hive on splinterlands to save it a little bit in hard times few months ago. And all above gives me almost nothing, I just hold it in good faith.

Also you pasted above screenshot of hive I spent to pay for **hive node** :) I think it doesn't match transfers to exchanges :P

Just tell me how much HIVE I should hold with no reason, to keep you happy :)

Also for dcity I think it is much more safe if my funds are diversified. And can eventually spend it back on development or basically increase game value using $. How much risk I can take holding Hive forever till it reaches real bottom and will be not enough to fund any development?

Make an app, earn hive, then try to decide for yourself how much HIVE is max for yourself. I can understand BTC maximalism but HIVE maximalism is weird. I guess you hold other crypto? You can always use it to buy HIVE if you think 100% HIVE is the way...

Here we are on LeoFinance, you can rate my financial decisions :)

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@eirik ·
Thank you @gerber.

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@gerber ·
Can also add that I made once a deal with developer to pay him X HIVE, and before he finished job Hive lost 30% value. He will not agree to take hive anymore and I feel bad about this situation too...

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vote details (1)
@revise.leo ·
Ouch. Now that is a good reason to sell. 

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@revise.leo ·
Hi, and thanks for the clarification. 

I'm fairly sure you're capable of making some very rational financial decisions and I can't blame you at all for diversifying. 

Do you expect Hive to keep on going lower? 

I am probably being emotional hanging onto my Hive, that's just me! 

It's a very clever game btw, I should have praised it a bit more in the post. 

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@gerber ·
0.11 is very strong, should go up from this point, you can also see I try to sell when price is up and hold when it's down. selling at 0.11 hurts, selling at 0.14 hurts too. When we will see 0.2+ I think everyone will feel better :) All we need is more users essentially and it's hard to onboard, Hive is not easy :(

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vote details (3)
@gillianpearce ·
I'm also eagerly awaiting more comments. &#128513;

!ENGAGE 100

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@revisesociology · (edited)
It'll be interesting - it could be that Gerber is just the most visible seller because it's quite a small Dapp, it's quite possible that Splinterlands is causing more sell pressure, but then again that's brought a lot of visibility to the Platform too.
 
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@gerber ·
Splinterlands made millions of $ and they don't distribute steem/hive back to players :)

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@gillianpearce ·
I think I might be doing this ENGAGE lark incorrectly. Let me try again and see if it works this time . . .

!ENGAGE 100

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@misterengagement ·
<center>  Thank you for your engagement on this post, you have recieved <code>ENGAGE</code> tokens.</center>
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@hivebuzz ·
Congratulations @revise.leo! You have completed the following achievement on the Hive blockchain and have been rewarded with new badge(s) :

<table><tr><td><img src="https://images.hive.blog/60x70/http://hivebuzz.me/@revise.leo/posts.png?202101261116"></td><td>You published more than 70 posts. Your next target is to reach 80 posts.</td></tr>
</table>

<sub>_You can view your badges on [your board](https://hivebuzz.me/@revise.leo) and compare yourself to others in the [Ranking](https://hivebuzz.me/ranking)_</sub>
<sub>_If you no longer want to receive notifications, reply to this comment with the word_ `STOP`</sub>



**Check out the last post from @hivebuzz:**
<table><tr><td><a href="/hivechat/@hivebuzz/hivechat"><img src="https://images.hive.blog/64x128/https://i.imgur.com/az6DjX3.png"></a></td><td><a href="/hivechat/@hivebuzz/hivechat">HiveBuzz hosting #HiveChat on Twitter on January 26, 2021 at 12.00 GMT </a></td></tr><tr><td><a href="/hivebuzz/@hivebuzz/pud-202102"><img src="https://images.hive.blog/64x128/https://i.imgur.com/805FIIt.jpg"></a></td><td><a href="/hivebuzz/@hivebuzz/pud-202102">Next Hive Power Up Day is February 1st 2021</a></td></tr></table>
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@hykss ·
Good you mentioned you don’t like singling someone out because I could have misinterpreted a large part of your post 🤣
I don’t have much history but I understand your point. I’d like to see big actors holding interests on the platform also staking big bags of hive. 

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vote details (1)
@revise.leo · (edited)
I know what you mean, I sort of like to see a developer on Hive with a 100K stake! 

I could forgive it if the game was bringing lots of people into Hive but I don't think it is. 

My suspicion is that a lot of people who play it are also selling Hive. 

I'd still like to hear their views on the matter. 

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@gerber ·
My suspicion is that a lot of people who use hive in general are also selling hive :) and it is 50-100x more than distributed dcity rewards or part of hive I took for creating game :)

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vote details (1)
@jmsansan.leo ·
I don't know too much but I think the main issue with HIVE is the inflation.

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@dalz ·
Nope ... its the demand :)
👍  
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@revise.leo ·
Yes there is that as well! 

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@littlehyper.leo ·
Interesting thoughts for sure. 

I liked to read @nealmcspadden 's comment. I sometimes feel it's the whole HODL'ing mentality that keeps us ( myself included ) stuck in our scarcity mindset. About to change that around, while also focusing on setting up my investments to grow my stake.

> NB I've tried to phrase this so it isn't an attack on anyone investing in DCity, so please don't get too acerbic in the comments!

How many reading this post know what acerbic means? I like to think my English is pretty good but I had to look it up hahaha! Thanks for increasing my vocabulary.

Now let's manifest some sunshine in Portugal. A week of rain is enough for me.

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vote details (1)
@revise.leo · (edited)
'Scarcity mindset' is an interesting way of looking at it. 

I dunno, perhaps I'm just too emotionally invested in the platform! 

I think we've got a few days of Sun where I am coming up after today at least!

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vote details (1)
@littlehyper.leo ·
Oh no! You wrote Sun with a capital S. It sure seems like you're too emotionally invested ;<)








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@misterengagement ·
<center>  Thank you for your engagement on this post, you have recieved <code>ENGAGE</code> tokens.</center>
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@nealmcspadden ·
Disclosure: gerber is my partner in dec101

I've always thought this whole line of reasoning is faulty. HIVE is supposed to be a currency. Currencies that aren't exchanged are dead and worthless. 

The issue with the price of HIVE isn't that people sell too much. For every seller there is a buyer. The issue is that there isn't enough demand to raise the price.

*Note: You can get into a different argument about the ninjamine that is now in the proposal funds.

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vote details (2)
@holybread ·
The currency being exchanged is a point most people miss looking at the Hive price.

I always said I would like to see it hove and be somewhat stable around the $0.25 mark but maybe is should be $0.20

The more stable the price is the more willing people are to use it for exchange of goods and services. 

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@pouchon.tribes ·
The ninjamine is the elephant in the room.
Only serve one group of people.

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@revise.leo · (edited)
Thanks, precisely the kind of comments I wanted. And I guess dapps are what we need to increase demand which is why I'm not 'up in arms' about so much selling. 

Sometimes I feel retarded for being so emotionally attached to this chain. 

I just wanted a bit of a debate.

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@pouchon.tribes ·
I play #dcity for the sake of earning sim
and to a long extent earn hive.
I reinvest most hive and sim I got since I started.
I am sort of in a loss situation but it is a game for me.
I am starting to use sim and hive 
to power up Hive and keep it going.

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vote details (1)
@revise.leo ·
Sounds like it's working out for you, best of luck to you!

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@r1s2g3 ·
To be very honest, when you start playing Dcity and start creating top city that only create Hive rewards for themselves  with 0 SIM rewards, it simply means they are not playing Dcity instead they are looking for APR they got from Dcity that is much greater than Hive curation.

A broke and complex curation further add salt to the wound.

And last that I hate to say but I personally feel 80% user in Hive are not here due to ideology or decentralization that Hive offer but for some bucks that Hive offer. (ok everyone like to earn  but there is some ideology that you follow but I feel Hive lacks that culture.)

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vote details (1)
@revise.leo ·
I hear you, I've probably been to too many Hive Fests! 

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@themarkymark · (edited)
Everyone is selling, most witnesses sold most of what they have earned, most dapps are selling, most of the funded proposals are selling, most authors are selling. It is kind of the theme here. I sold around 10% of my stake and it is worth 10x what I hold now.

Technically buying Leo is "selling" as well.

I gave up caring about it. People will almost always do what is in their best interest.

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@revise.leo ·
>I sold around 10% of my stake and it is worth 10x what I hold now.

Is that just because you converted it to FIAT? 

It's a tough hold Hive.  

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