Introduction
I use to own more than 200,000 in STEEM/HIVEPOWER. A couple years ago I divested everything and move my capital elsewhere. Back then, there were some bad people destroying people's account just for disagreeing with them. Now that I contemplate whether or not I should reinvest heavily.
What keeps me from it
1. Staking Rules
So, what If I were to put everything in LEO/HIVE and powerup? First, I would lock my crypto for 3 months. That's a MAJOR no no for me. The opportunity cost is too high to lock my crypto there.
There are plenty of staking going on out there and all of them allow you to divest quickly. This rule keep any rational investor from ever staking. The only people who do are a hardcore believers.
Knowing that, what are the prospect for capital appreciation of the token? Very low indeed. This project is bound to stay a small cap project as long as the incentives goes against rational investing.
2. I Value Yield
Let's say I bought a 90 day HIVEPOWER delegation from Blocktrades to see if I can get a yield on it. 1 BTC would give me 473818.543 HIVEPOWER.
- Initial investment: 1BTC -> $55K
- Vote at 100%: ~15.25
- Maximum reward: $150.25 a day (10 self vote a day)
- Total reward over 90 days: $13,500
So even if I were to be a selfish bastard and vote of myself to get a yield I would have got a negative yield of -75.45%. That's assuming the value of HIVE doesn't tank as I does when the market goes bear.
So what's in it for an investor?
So you get your money locked for 3 months in the most fast paced and changing environment(crypto). Knowing there are other rational investors out there, what are the chance for capital appreciation beyond that of BTC and ETH? Finally, in terms of yield, there isn't anything there that would create a strong incentive for people who want to grow their stash by investing in the platform.
Tell me why I'm wrong
It's been a while since I spent time in the HIVE ecosystem. Maybe things have change and the tokenomics have changed while I was gone. Please tell me how I can rationally invest my money in HIVE in the current environment.