Hive is the epitome of [Web 3.0](https://leofinance.io/posts/@leoglossary/leoglossary-web-3-0).  This is something I truly believe.  When we look at what people opine about their vision, it often seems like they are talking about Hive.

For this reason, we have the potential to really build something very powerful.  The blocks are going in place which will allow [developers](https://leofinance.io/posts/@leoglossary/leoglossary-developer) to really create some impactful [applications](https://leofinance.io/posts/@leoglossary/leoglossary-application).  Platforms that offer a great deal more than just the typical [social media](https://leofinance.io/posts/@leoglossary/leoglossary-social-media) experience are crucial.

This begs the question why would users switch to Web 3.0?  After all, if [Elon Musk](https://leofinance.io/posts/@leoglossary/leoglossary-elon-musk) is building the Everything App with [Twitter](https://leofinance.io/posts/@leoglossary/leoglossary-twitter), won't people get most of what they need?

My feeling is that Musk will encounter one vital issue: Web 3.0 is counter to his [business](https://leofinance.io/posts/@leoglossary/leoglossary-business) plan.  He is not altruistic on this.  Twitter has to make money.  Therefore, at the end of the day, it is going to be [monetized](https://leofinance.io/posts/@leoglossary/leoglossary-monetization).

This creates a problem for most users.  Since there is an **ongoing reliance on extraction, it is impossible to compete with Web 3.0**.

Hive is presenting something completely different.

In this article we will focus upon the dual components of [wealth](https://leofinance.io/posts/@leoglossary/leoglossary-wealth) building along with [income](https://leofinance.io/posts/@leoglossary/leoglossary-income).

 https://images.hive.blog/DQmYtEepLnpsAiHeqss85FFpw6XSPaScood4bwERDet3U2w/image.png 

<center>[Source](https://psmag.com/economics/income-poor-measure-income-inequality-85260)</center>

## Monetization System

Hive is a monetized system.  We see that with the [Proof-of-Brain (PoB)](https://leofinance.io/posts/@leoglossary/leoglossary-proof-of-brain-pob-mechanism) mechanism that is woven throughout.  Many projects are [tokenized](https://leofinance.io/posts/@leoglossary/leoglossary-tokenization), in addition to the [base layer.](https://leofinance.io/posts/@leoglossary/leoglossary-base-layer-blockchain)  This means that people are potentially rewarded for their activities.

The result of this is that people have the ability to generate an income.  These are payouts that can swapped into their [fiat currency](https://leofinance.io/posts/@leoglossary/leoglossary-fiat-currency) to acquire basic necessities.  Actually, as we are seeing in Sucre, the are pockets forming where the [Hive Backed Dollar (HBD)](https://leofinance.io/posts/@leoglossary/leoglossary-hive-backed-dollar-hbd) and [HIVE](https://leofinance.io/posts/@leoglossary/leoglossary-usdhive) can be used to pay directly for [goods](https://leofinance.io/posts/@leoglossary/leoglossary-goods-economic) and services.

This is the first level that one seeks to get to.  It is known as "making a living".  People do this every day around the world.  They get up, go to work, and, at some point, get a paycheck.  Most are caught in a loop since their money quickly goes out to pay bills.

Here is why incomes, unless rather large, tend not to lead to wealth.

Hive does offer this solution and more is on the way.

## Wealth Building

There is a speculative nature to [cryptocurrency](https://leofinance.io/posts/@leoglossary/cryptocurrency).  This much is evident.  In fact, we might make the case there is over-speculation.  Nevertheless, the [price](https://leofinance.io/posts/@leoglossary/leoglossary-price) go up reality is part of this.

[Assets](https://leofinance.io/posts/@leoglossary/leoglossary-asset) appreciating in value is how wealth is generated.  Of course, to do that, one has to have some.  This is where much of the world runs into a problem.  Even in developed countries, little is owned outright.  Most, if they have an asset, it usually has a loan tied to it.  This can be beneficial if [markets](https://leofinance.io/posts/@leoglossary/leoglossary-market) are going up.  However, see a reversal and we know how it can end.

Hive has all kinds of assets that have the potential to gain in value.  Over time, these could be a solid part of personal [balance sheets](https://leofinance.io/posts/@leoglossary/leoglossary-balance-sheet), especially during a [bull market](https://leofinance.io/posts/@leoglossary/leoglossary-bull-market).  We already saw this with Splinterlands' decks.  There is also HIVE, [layer 2](https://leofinance.io/posts/@leoglossary/leoglossary-layer-2) tokens, and NFTs such as PsyberX crates.

In short, there is the ability to acquire some assets that can reach higher levels of value.  A lot of this stems from the [network effect](https://leofinance.io/posts/@leoglossary/leoglossary-network-effect).  That means that as the game or platforms gets more popular, the value of the assets tied to it will also grow.  

We also can foresee a time when creativity can be applied.  For example, there is talk within [Leofinance](https://leofinance.io/posts/@leoglossary/leoglossary-what-is-leofinance) if offering [NFTs](https://leofinance.io/posts/@leoglossary/leoglossary-non-fungible-token-nft) based upon activity.  That means that, as one is more engaging, assets will be distributed.  These could hold attributes related to [governance](https://leofinance.io/posts/@leoglossary/leoglossary-governance), open up "premium" sections of the [website](https://leofinance.io/posts/@leoglossary/leoglossary-website), or allow people to enjoy in rewards otherwise not eligible for.

Naturally, if this is valuable enough, there will be a market for it.  Here is where value meets price and, potentially, someone could most the asset if there is [liquidity](https://leofinance.io/posts/@leoglossary/leoglossary-liquidity).

This is what happens when people are holding something that can go up in price.

 https://images.hive.blog/DQmP7c9rxP1WioDyYvspCcBNmR5ULtbd9sygciJqXsJ8aaZ/assets.png 

Of course, selling is only one option and, in the long run, a poor one.

## Financial Epicenter

[Decentralized Finance (DeFi)](https://leofinance.io/posts/@leoglossary/leoglossary-decentralized-finance-defi) is a vital component to Web 3.0.  Without it, we are dealing with a rather limited system.

Web 3.0 is the merging of social media (media) and [finance](https://leofinance.io/posts/@leoglossary/leoglossary-finance).  To have finance, we have to build it.

Going back to wealth building, the idea of taking an asset and letting it appreciate over time is one approach.  The question is what is done when value is created?  Most simpletons like us simply sell to lock in [profits](https://leofinance.io/posts/@leoglossary/leoglossary-profit).  That is not what the wealthy do.

Here is where development enters.

On Hive we need to get to the point where assets can not only be sold but also leveraged.  Here is where the major shift occurs.

Consider the situation where one acquires some asset through activity.  It has a market value with enough liquidity to sell.  However, instead of doing this, our Web 3.0 wealth builder takes out a [loan](https://leofinance.io/posts/@leoglossary/leoglossary-loans) against that asset.  This is what millions of people do with a [mortgage](https://leofinance.io/posts/@leoglossary/leoglossary-mortgage).  The individual receives a [stablecoin](https://leofinance.io/posts/@leoglossary/leoglossary-stablecoin) as payout on the loan, a resource that could be used for something else.

This could be done at the base layer as well as layer 2.  We also could do this with value capture [coins](https://leofinance.io/posts/@leoglossary/leoglossary-coins)/tokens such as HIVE or  NFTs.  Splinterlands already saw this developed to a certain degree although that focus is on renting.

All of this creates another level of asset holding.  As opposed to dumping the asset (coins) on the market, they are still retained and leveraged in a different manner.  Of course, the individual can take the money and move into another revenue generating opportunity.

Here is where we see wealth building increase.  The opportunity to move into more advanced [financial services](https://leofinance.io/posts/@leoglossary/leoglossary-financial-services) is presented.  Are all going to opt for this?  Not at all.  There will be, however, a fair number who enter into arrangements to grow their holdings to a great degree.

There is another piece to this.  What we effectively are creating is a funding platform.  We know [Web 2.0](https://leofinance.io/posts/@leoglossary/leoglossary-web-2-0) was dependent upon venture capital money.  This is not how Web 3.0 will succeed.  When beholden to those players, it becomes a controlled environment.

When one leverages the assets that have value, it presents other opportunities of support.  One could take the resources and put them into a newer project that offered even more potential.  This also could be done by individual projects to pay for expansion and advancement of their own platform.

The basis of a lot of this is being built as these words are written.  In the future, this is what Hive is going to offer on a wide scale.
 ___
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