Bitcoin Maxis Will Never Understand Hive
We ran across these people on Twitter and other social media sites. They are not hard to find. In fact, they stand out like a streetcar in a forest.
Bitcoin Maxis.
To some, HODLers are stand by their convictions. For others, this is a cancer that is hindering the progress of the industry.
When it comes to Hive, these people have no clue. They simply do not understand, nor will they. Of course, a lot of this stems from the fact they have as much interest in a new system as Jack Dorsey or Elon Musk. They are like kids putting their hands over their ears screaming "lalala".
Nevertheless, the lack of understanding is exactly why Hive will thrive.
In this article we will cover some of the main points that shows why the Maxis are holding onto a sinking ship.
Before going any further, this is not an article implying that Bitcoin is a bad investment or has no upside. This is going to focus upon the base issues, leaving the market aside. As always do your own research and understand markets are capable of just about anything.
The Monetary System
In my view, to fully immerse ourselves in this realm, we first have to understand what our monetary system it. This is a point that many fail to grasp.
If you asked 100 people what the monetary system is, what kind of answers do you think you would get? I have no idea since I never did this but I am sure it would be interesting. Also, there is a great chance it would be inaccurate.
For those who do not know, our monetary system is really the merging of two fields: accounting and communication. When we bore down the the basic essence this is what we find.
The first is what Satoshi Nakamoto saw when developing Bitcoin. This utilizes distributed ledger technology. Essentially, Bitcoin is a ledger of financial transactions, no different than a bank. Of course, it should mirror that since banks are the ones who control the money. In other words, they maintain the ledger on our behalf.
What is overlooked is the second part.
This is the area where networks such as SWIFT enter. Few question the role this pays when seeing threats of sanctions by the U.S. and its allies. How come there is that threat when SWIFT is not a settlement system?
The answer lies in the fact that it is a communication (messenger) service, one that is vital to the existing monetary system.
Accounting and communications.
Technology
At some point this year, the Federal Reserve is going to roll out FedNow. This is a payment system it is offering to its member banks. This is a massive upgrade from what is operating at the moment. One of the key features is instant settlements.
This was a step forward that was long overdue. While the Fed is updating the domestic network, international payments will still be awful. This is where discussion about wholesale CBDCs make sense. The global payment system is a mess, dating back many decades.
Here is another issue that many face: technological advancement is crucial. We live in an era where disruption occurs fairly regularly. Since the Internet came to money, thanks to Bitcoin, we are seeing the entire spectrum potentially shifting.
The problem here is that disruptors that do not keep advancing end up being disrupted themselves. This is what the Maxis overlook.
Bitcoin is now 13 years old and basically the same technology. There were 2 updates I believe in that time, neither altering the basic mechanics of the blockchain.
Hive, on the other hand, is the exact opposite.
Monetary Elasticity
Monetary elasticity is vital for the economy and free market. Without that, economies see stagnant growth, a situation that usually leads to the collapse in value of asset classes.
Hive as devised a way where the community is responsible for the elasticity of the money supply. Through the conversion mechanism, more of the transactional currency, HBD can be created. The reverse can also take place.
When trying to build an economy, this is vital. Bitcoin, after all, achieved the success they did due to the inflation of the coin. This was a successful aspect of the design. Where it is flawed is that it has no elasticity, meaning that it will pool. We are already seeing this with people like Michael Saylor who states he is going to keep amassing more.
Merging Of Social Media And Finance
If this was a question, Elon Musk is bringing the answer. There is little doubt the ultimate direction he is going to take Twitter. His first financial venture is going to become a payment system. This is something the company already applied for.
There was a time, many decades ago, where computing and finance were separate. This is no longer the case. It is impossible to operate in the 2020s in a financial way without computing.
Within a decade, it is likely we are going to be saying the same thing about social media. The idea of it operating without finance will be absurd. Of course, this brings up how are they blended. Many will say just implement cryptocurrency as a payment system to social media applications. While this would merge the two, that is like taking two separate cakes and stacking them on top of each other. The result would not be one cake since we could clearly see it is two cakes.
Hive is approaching both from the base layer and working up. This is one of those situations that we kind of backed into. Nevertheless, we are confronted with the reality that we have both social media and finance inherent in the ecosystem.
What this means is the development from the core stretches to both areas. When we look at Twitter adding Bitcoin or DOGE (or whatever) to its platform, is there anyone who believes that is a Web 3.0 system? Why the accounting system might not be controlled by Musk, the communication side is. You cannot transact on Twitter without Twitter's permission.
A Better Network
Maxis like to call everything that isn't Bitcoin a "sh*tcoin". In many areas, they are correct. However, to take that stance also means overlooking any technology.
To put it simply, Hive is a much better network. If we look at this solely from a market perspective, we buy into the confusion. Markets are terrible judges of value. That said, when we look at the ability of the network, we see the difference.
Of course, this is replied with the idea of the Lightning Network. Proponents believe this is the solution.
What is needed is an electronic payment system based on cryptographic proof instead of trust, allowing any two willing parties to transact directly with each other without the need for a trusted third party. Transactions that are computationally impractical to reverse would protect sellers from fraud, and routine escrow mechanisms could easily be implemented to protect buyers. In this paper, we propose a solution to the double-spending problem using a peer-to-peer distributed timestamp server to generate computational proof of the chronological order of transactions. The system is secure as long as honest nodes collectively control more CPU power than any cooperating group of attacker nodes.
This is from the Bitcoin White Paper. Isn't it interesting that they are proposing for Lightning is what Bitcoin was suppose to be?
What they are trying to accomplish with Lightning, a rapid, inexpensive medium of exchange system is already present on Hive. The base infrastructure already offers that without the second layer. We can only imagine some of the different features we will build into the decentralized layer 2 systems that are starting to pop up (hopefully a robust smart contract platform).
In Conclusion
Hive is one of the most advanced networks in blockchain. Some like to claim that the best technology does not always win. This is true. However, the reality is the best technology usually does win.
Here is a link to an article about the 10 Most Popular Laptops of 2009. How would you like to be operating your business on one of these?
The reality is that technology does matter. When it comes to the monetary system, communications is vital. In the digital realm, this means networks. If you are dealing with a network that is more than a decade behind, the chances of fulfilling a large portion of the market, i.e. transactions, is reduced.
This is the essence of the monetary system. If going to compete, one best forth the technology to do that.
It is a fact the Maxis do not seem to grasp.
If you found this article informative, please give an upvote and rehive.
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Upvoted, rebloged and also shared on Twitter already now I am going to read this article ❤️☑️😅
sup
We are all hivecoin Maxis 🚀
What is the best approach for merging social media and finance in the current ecosystem is a question that entrepreneurs have been hunting for over a decade. We're on track to give that answer if we tag along and steadily increase the pace.
Great post, how long does it take you to write such a massive post?
I wonder how he gets it right day in and day out, he is an inspiration.
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hard worker, fast worker
Type faster @joetunex.
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Am working it lol
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The entrepreneurs can answer it for themselves since they are the ones building things out. That is the power of permissionless.
Anyone can join the ecosystem and starting erecting whatever they feel is needed.
It is how an organic system grows.
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true that
I get it done in about 45 minutes most days.
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45min, that is insanely fast.
It is a shame the Bitcoin maxis go the way they do, these are people with brains who fail to see the good in any other cryptocurrency.
We often talk about the digital network state, and I wonder how well Bitcoin will perform hosting a network state.
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Well there is a long way to the network state concept espoused by many. However, to achieve that end, a foundation is required.
One of the things that is necessary is governance. Here is where the "population" of the network state has a say.
Do the users have any input? If not, why not just hang out on Facebook?
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your analysis and your visions are excellent. However, I have noticed that the power of Hive lies partly
However, what can weaken Hive is the imperialist downvote system which discourages a very large number of registrations or facilitates the end of many activities.
So the thinking would be to find a regulatory system that affects notoriety without affecting the funds earned.
Proper management of HIVE:
The downvote system is not an issue when people look at the totality. If they only look at HIVE then they get lost at all else that is taking place.
There are dozens of other tokens that are tied to Hive that have a strong future. People who look to them as part of the PoB have a different view.
Plus we are adding more to the ecosystem. Hive is a lot more than just blogging.
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I would say that hive has several advantages from many points of view and I believe that a careful analysis would be enough to decide to invest in it.
But the important thing for us is that it continues to grow and prosper in the meantime everyone else will also notice Hive and the key thing will be that we have taken a position early and are ahead.
The same thing happened to me with Steemit initially, and I also had the good fortune to go out when it was profitable, obtaining a nice nest egg... the sooner you arrive, the better accommodation, obviously it is an example that has little to do with Hive, it was just to make people understand the importance to get into something big when it's in its infancy.
And of course we all hope that history won't repeat itself but it won't because we're talking about very different things.
The earlier one starts, the more the compounding effect can make its mark. A major part of that is time and having the additional months/years is of benefit.
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Yes, time is the greatest resource we have and using it to our advantage is a duty.
In compound interest, the sooner you start, the greater the results that can be obtained, I believe that today it should be a duty to spread financial culture so that the new generations can immediately start building their future.
!PGM
!LOLZ
!MEME
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Earn Crypto for your Memes @ HiveMe.me!
It doesn't seem like it has been 13 years already that BTC came out. If I didn't know any better I would totally be fact checking that, but I know it is true. It just doesn't feel like it. All of this makes you wonder what we are going to be saying in five years about Hive. Right now it is the merging of social media and finance, what will it be a merging of then...
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It depends upon where Hive is in 5 years. If we are still talking about the same things, we might not be anywhere.
The last 5 years didnt see a ton of progress in many ways. Of course, in others, it is light years ahead.
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At least breaking out of Steemit should be counted as a major step in the right direction.
Maximalists will not take Hive seriously until it becomes painfully obvious that Hive's existence brings value to Bitcoin (and vice versa) due to actual decentralized mechanics. When over 99% of all crypto is a centralized hunk of shit it's easy to see why Maxis would just assume 100% of everything is garbage. Easier than doing the actual work, especially when the vast majority would wrongfully determine that Hive was centralized at first glance anyway regardless of research.
My vision for accomplishing this goal is creating some kind of gambling mechanic on Hive that uses unhackable Bitcoin hashes as the random number generator. I think something like Marbles on Stream would go instantly viral if players could bet actual crypto (HBD) on it. RNG is also an important aspect in the gaming sector to ensure fairness. When Hive provides Bitcoin with actual utility it will be taken seriously. As we can see we've already made the opening connections to the lightning network, which is a good start.
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You bring up a good point. The odds are in their favor especially with Ethereums move to PoS. That is now looking like a chain that will implement a lot of KYC. How is that considered crypto?
Interesting idea on the gambling site. I am not familiar with that realm so have to defer to others on insight.
But does some to have logic using Bitcoin hash along with HBD. Interesting concept.
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I like what you usually write, it's usually inspiring, but I have to tell you that I find this article too superficial to try to be critical of Bitcoiners or try to compare similar technologies.
I do not consider myself TOXIC, although I am close to maximalism, I believe in digital scarcity and that is why I do not see any problem in the tendency to "accumulation" that you say that BITCOIN has.
Monetary elasticity is a controversial topic, in which a lot of understanding of how the market works is needed. Our problem in this regard is that we compare goods and assets with the dollar, of infinite supply and centralized issuance, with which the free market is hampered and thus, the "real" price of goods and services is manipulated by entities against the natural rules of free trade.
In an asset with an inelastic supply, changes in production levels necessarily give rise to price fluctuations. When economic output increases, sellers are forced to seek marginal buyers at lower prices, and when output declines, buyers seek marginal sellers at higher prices. This "inherent volatility" is nothing more than the market adjusting for variations in demand through the price system and does not prevent an asset from being used as money.
The maximalist Bitcoiner tries to see further, if we didn't compare everything based on the dollar, that inelasticity you're talking about shouldn't be a problem.
The current system, based on inflation and control by governments and central banks, is the problem that has to be solved and I assure you that in that sense, BITCOIN does it very, very well.
The fact that it has 13 years of history and only 2 major upgrades does not mean that the project is less "solid", after all, the gold standard has been living among us for much longer without causing any inflationary problem. It was the governments and states that began to cause it when they began to "manipulate" the weights and alloys, and therefore, the gold content for the same weight, that those coins had. Indeed a prelude to the current disastrous system.
On the other hand, we cannot compare BITCOIN with HIVE because what is tried to be solved in each of them is different.
Let me also tell you that, in my opinion, CBDCs are not going to be used for anything other than absolute control of your financial holdings, programmed money with the possibility of even having an expiration date.
Finally, the Lightning Network, Layer 2 built on Bitcoin, solves many of the handicaps that the Bitcoin Blockchain has. Over time, many more layers of functionality and use of the blockchain will be added, especially due to the latest upgrade "Taproot" and what you consider to be an "old 2009 Laptop" is like saying that everything we create today in day is made about an invention that has more than 40 years of history, Internet.
Thanks for your detailed response. I will start by saying I disagree with you completely and find you analysis flawed.
To be blunt, the result of misguided ideology.
That is true a lot of understanding how the market works is required. However it is only controversial to the marxist, gold bug, bitcoin maxis, and WEF, all who think they can control things.
The reason why monetary elasticity is not only valud, but a central part of our economic and monetary life is because the business cycle. No matter how hard the aforementioned groups try, this has gone on for centuries.
Any why is that? It is based upon human nature. When things are going well, we forget about the bad times and engage in excess. This happens at most levels causing massively booms that peak. When things reverse, the human emotion of fear takes over and the trend reverses.
Hence a money supply has to be supplied to meet the needs. Bitcoin, with its artificial market cap of 21 million (what happens if the economy needs 25 million BTC) cannot provide this.
I am not exactly sure what you mean by this but if you are referring to the money supply, here again you are way off base. For the major currencies (USD, EURO, GBP, JPY) the governments nor central banks control the money supply, outside of the banknotes which are central bank money. The digital version, ie what we use on a daily basis, is controlled by the commercial banking system. This is the nature of fractional reserve banking. To state the governments and central banks are responsible for much to do with money, if that is what you are saying, is incorrect.
This is a myth that is not to be believed. Since the 1500, when Luca Pacioli invented double entry accounting, you had ledger money. This is what the European banking houses have used for centuries. It is also what merchants used throughout history. Coinage came with an assortment of problems going as far back as the Great Bullion Famine.
Even in the United States, the banks were creating covertible notes which provided elasticity to the monetary system. At the same time, the Eurodollar system started in the 1950s and was creating all forms of money (this is where the Great Inflation of the 1970s actually came from). Finally, while the US pegged it, the price of gold had a free floating exchange rate around the world.
Exactly my point. Bitcoin is a handicapped network that is now trying to be replaced by a network that has no incentive model built in. Why build lightning when Bitcoin was suppose to solve those problems.
Maybe but the track record is not great.
Dont get me wrong Bitcoin has some properties that will make it most likely a good hold. For that reason, you maxi from a price standpoint could turn out well. However, from a network point of view, it might be misplaced. You even stated the transfer layer is being moved to layer 2.
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Thanks for the extensive answer which I find totally flawed as well 😂.
With this question I understand that I differ in everything with you, at this level of understanding I am not going to convince you, nor do I want it, but the exchange has been good.
Bitcoin maxis are just so rigid and want to stick to one set of principles as much as possible. I think they'll eventually experience what any business experiences when they refuse to adapt or innovate. They'll sink into oblivion.
What happens when what they can do best is able to be done by another blockchain. And this blockchain can do more than just that. It can do many other things? The name stays but the relevance will gradually dwindle away.
Depends upon what you mean by sink into oblivioun. If you are referring to price, that might not be the case. BTC has the publicity and a lot of people will look to hold it. There is a scarcity to it which could give it the market cap of gold.
That said, as a network, it is not going to be much of a player. It will have still be used for large moves of value, since it has liquidity and is a secure network. However, outside of that, it is not really offering much that I can see.
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Yes, it's definitely well positioned to be the digital gold. I think It being first in the market has not been fully explored in other areas apart from its monetary aspect/capabilities.
As you wrote in a comment on a post of mine, Elon Musk doesn't even want to hear about Bitcoin and the same goes for Max Keiser and others. These are as toxic for the ecosystem of crypto as they try to make us see the fiat system against bitcoin.
I'm a toxic Bitcoin maxi and still "understand" HIVE. Actually at code level.
There is Bitcoin and there is shitcoins. HIVE is not a shitcoin, it's a social network.
Well, let's hope it won't get replaced by Bitcoin+Lightning+nostr :D :D :D
I think it is crazy that many of those who use crypto have not looked into a community where all they do is crypto...It's the most definite proof of ignorance...How can you say you are interested in something but you don't go where those who are interested are? I could be wrong anyway but It's surprising to me.
I’m a bit of a Hive and Bitcoin maxi, not out of principle but out of practicality. There is still way too much hype in the space and most projects lack a strong enough community or true attempts at decentralization. Meanwhile I have a lot going on and I’m not able to do the same research I did in 2017-2019. I’m sure other good projects will come along but I haven’t seen any that feel as full of potential as bitcoin or hive, and so I focus most of my energy on these two. It will take something really impressive for something outside of these two ecosystems to get my attention.
BTC solves the issue of transferring money but I just don't think it's the solution for anything outside of it. I think it works well as an asset but the maxis tend to believe it is the solution to everything and I don't think one chain will be the best at everything. Hive has it's advantages and disadvantages but I think it's better suited to be an everything blockchain.
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Thanks, @taskmaster4450 for your article placing the Hive Web 3.0 platform where it stands. And as a blockchain it is multi-rich by its tech advance, the myriads of collaterals it involves from art to sciences culture maths gaming etc, high-interest financial gains and shares of strategies that benefit the Hive and its users, and possibilities we discover every day and plenty more to come it seems