The markets are tough of late.  Both **cryptocurrency** and the equities markets are being trounced.  There is little doubt the bears are in control while fear took over.

Times like these test the resolve of all market participants.  Not all survive.  This is a cleansing period where weaker heads are forced out.  People abandon their positions, throwing in the towel.

With something relatively new like cryptocurrency, this is even magnified.  Equities, as a whole, have a long track record.  Cryptocurrency cannot rely upon this.  Hence, many exit believing that it is a scam or take [Warren Buffett's viewpoint](https://leofinance.io/@khaleelkazi/oetmwzeu).

Ben Bernanke use to talk about green sprouts.  This is an important concept for **crypto-economic** systems.  As they grow, the [network effect](https://leofinance.io/@taskmaster4450/network-effect-and-crypto-pricing) starts to take over, further enhancing the impact upon the entire ecosystem.

This is something not reflected in market activity.  Look at the different cryptocurrencies and you can see how the market paints then all with the same brush.  Red is red and all are hit.

Therefore, we need to separate the market from what is actually taking place.  The market does not care about development versus idle.  It simply moves according to the irrational emotions of the participants.

# Builders Are The Difference Makers

Here is a simple question:  

What do the following projects have in common?

* SpkNetwork
* Ragnarok
* Leofinance
* PsyberX
* Actifit
* Splinterlands
* Brofund
* CTP

The answer is they are all building.  Here are more than half a dozen projects working on some pretty interesting things.  They are also immersing themselves in the middle of some pretty big markets.  If even one of them changes one of those industries by even a few percent, it will be enormous for Hive.

When the market goes nuts, it is often best to return to the basics.  This is true no matter which direction it is going.

Revisiting the list, it is easy to see how there is hundreds of millions of dollars in potential there.  Obviously this is not going to roll out overnight yet people are working on moving each of them forward.  What is powerful is the fact that they can compliment each other, further enhancing the impact.

In the digital realm, theories like [Reed Law](https://en.wikipedia.org/wiki/Reed%27s_law) tell us a great deal.  These explain the correlation between different players in a communication system along with how value is affected.  It is important to note that on a blockchain like Hive, one's account can access anything tied to the network.  This takes the graphical representation of the system from 2D to 3D (2D being more representative of [Metcalfe's Law](https://en.wikipedia.org/wiki/Metcalfe%27s_law)).

As these "connections" are established, the entire system becomes not only more powerful but resilient.  When adding in decentralized aspects, the point should be clear how this changes things.

# Networked Economies

In the past we discussed [Distributed Network-States](https://leofinance.io/@taskmaster4450/distributed-network-states-the-countries-of-the-digital-world).  This is a mental shift that is necessary to understand how the digital world is changing things.  Instead of a geographic basis, we see one that is dependent upon the network one is tied to.  Hence, we are dealing with a realm with a lot more variables.

Hive is an **economy**.  If we keep this in mind, we realize the market pricing is not important.  What is vital is the commercial activity that is taking place.  If we use the mental framework of a town developing, we can see how building becomes the epicenter.

When people are busing constructing, "holes" in the town get filled in.  Businesses form providing goods and services the community needs.  As that happens, more is produced to meet consumption.  Money is exchange as a means of settling these transactions.

If we step back, we see the same thing happening on Hive.  How many are regularly buying Splinterland cards?  Are people engaging in their daily quests?  Do we not see people posting articles and comments, both of which can generate rewards?

All of this is taking place on top of the core infrastructure.  Essentially, we keep [creating new levels on Hive](https://leofinance.io/@taskmaster4450/hive-success-building-hive-on-hive) which only enhances the value of the base layer.

After all, isn't the land underneath a city worth a great deal more due to the activity taking place on top of it?  Would New York or London be worth as much if there was 1/10th the people engaging in 1/100th the economic activity?  Obviously not.

# Falling Victim To The Quick Hits

Everyone loves an overnight success.  This is something we all strive for.  Of course, this is magnified when it comes to markets.  

We all want to partake in the "next Amazon".  That is the goal for most speculative investors.  Mooning and Lambos are all that matter.

There is one problem with this.  AMZN was not always the high flyer it is today.  Let us look at the stock history from [Yahoo Finance](https://finance.yahoo.com/quote/AMZN?p=AMZN).

![amzn.png](https://images.hive.blog/DQmZhW1NoJdA5szzcLsqpuz6QyxTBwzkyaNhueHaBzesmWC/amzn.png)

Notice there were extended period of sideways movement.  There were also ups and downs.  It is hard to see but during the DotCom bubble, the stock reached $100 before losing most of that.  How would you have felt going through that?

One person who never wavered was Jeff Bezos.  He became the richest man in the world and it is easy to see why.  Once the stock took off, his holdings became worth a fortune. 

The key to all this is that, no matter what the market was doing, Amazon was building.  They were expanding their offerings, growing revenues, and taking over market share.  It wasn't until about 2014 where the average person was aware of the [retail apocalypse](https://leofinance.io/@taskmaster4450/sfbjnegq#@gadrian/re-taskmaster4450-6xujjb) that was taking place.

There is an important lesson in this.  Some cryptocurrency projects are going to follow Amazon.  They have tremendous futures.  However, the ones that achieve success will not do so as a result of hype or market action.  It will come from building and developing.

The "Amazon Economy" took decades to materialize.  Along the way, the company just kept moving forward.  There were no shortcuts just business decisions that ultimately resulted in more value.  Eventually the market realized this.

Remember, there was a time when Amazon was really just an online bookstore.  

Hive is building.  This is the reason for optimism during a wave of market insanity.  Fear has gripped the markets and we have no choice but to endure this phase.  However, while it takes place, nothing changes.  Those who are building will continue to do so.

This is why there is reason for optimism with this ecosystem.  There are a number of people who keep building, regardless of what the market is doing.  We cannot say the same about a lot of projects.



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