Hive is going to have a journey that is likely to get more interesting. The path to this point was one that included a money attack by Justin Sun. Due to a pre-mine, there was a vulnerability which since was eradicated.
This left Hive in a position where the ability to exert control over the ecosystem is diminished. It is not something that regulators like.
For this reason, it is likely that Hive takes a different path as compared to many other blockchains. We are going to see countries stepping up their effort to regulate the industry. Decentralization is their enemy and something they will seek to eliminate.
Here is where Hive's future is going to be forged.
Decentralized Node Systems
The foundation of the next iteration of the Internet is going to be decentralized node systems. This will carry through to most infrastructure layers. Some of this is already present at the base layer, with teams like the SpkNetwork developing sidechains that mirror this concept.
This results in a lack of control. That will likely be upsetting to those in charge. At some point, they will have to resign themselves to the fact they cannot do anything about this. Of course, there is a long way until that point since we are not on anyone's radar.
At this point, that is a good thing.
Hive Backed Dollar (HBD)
This is one of the most powerful aspect to the entire Hive ecosystem and it is flying completely off the radar. The industry does not realize the power of what already was established by the Hive Backed Dollar (HBD).
HBD is an algorithmic stablecoin. This means that we are looking at the likelihood of it even being listed on a centralized exchange (like Coinbase) is very low. There might be some out there that will carry it. However, as countries roll out their stablecoin regulation, it only stands to reason that algorithmic ones will be off the list.
Exchanges will be forced to comply.
Decentralized Finance (DeFi)
Hive's future is decentralized finance (DeFi). There is really no way around it. The coins associated with the network will have to be acquired through decentralized exchanges (DEX) or liquidity pools.
This is not a problem as long as these include something that is universally accepted. Bitcoin appears to be something that could be used as a vehicle currency since most countries are labeling it a commodity as well as providing liquidity that can make it accessible.
In addition, Hive can be a foundation for other assets that are created. By developing applications tied to Hive and, more importantly, HBD, we can expand the DeFi offerings used the value generated by the entire ecosystem.
Of course, the creation of this only adds to the value.
Non-Entry of TradFi
Ethereum is going to be the banker chain.
Many of us have stated this for a while. Ethereum is going to be scooped up by financial institutions. They will not care about the fees or time it takes to process a transactions. After all, if a bank is sending $100 millions, a couple hundred bucks in transaction fees is nothing.
We are also seeing the likes of PayPal and Visa getting into the game. Why are these companies so interested in joining? This is an opportunity for companies like this to start to establish a place within the industry.
Investment banks (along with commercial banks) are going to end up providing custody services for the major coins. This is contradictory to the tenets that Satoshi Nakamoto set forth but that is the direction most of cryptocurrency is heading.
It is safe to say this service will not be applied to $HIVE.
Take Over
Many feel the future is TradFi joining cryptocurrency. To me, this is not sensible since it is not how they operate. Wall Street seeks to control. They are not joiners.
This is why I felt that Bitcoin was being hijacked. It is a move that will not affect the network since it is Proof-of-Work (PoW). The coin distribution, however, will be in the control of major institutions. Michael Saylor is just the beginning and, quite frankly, he is a small fish.
Ethereum will see the network under their control. Since it switched to a Proof-of-Stake (PoS) model, the network can be overtaken with stake. It is not hard to envision a JP Morgan node being run. Of course, full AML and KYC will be required.
Hive's Defense
There is a community around Hive with applications and games that people use. This is the defense that other chains really do not have.
What is utilized on Ethereum? There are some DeFi applications that are of interest and popular. Perhaps a couple games. Outside that, there is not a ton being developed that keeps growing.
This could change in the future but the transaction fees are going to be a problem for many applications.
Forking is the nuclear option of blockchain. The problem with this is that, for it to be effective, people along with application need to switch over. This is not possible of that is not really present.
How many communities forked Ethereum? We had some forks but that was motivated by something different. Again, we could see something different in the future.
A true money attack, from the investment banks on Wall Street, would send $HIVE skyrocketing. The circulating supply is rather tight, especially if someone is seeking to gain majority control. Without the pre-mine stake, it is hard to amass 50M-70M without adding some huge buy pressure. Wall Street is big enough to pull it off because, in the end, it would only cost a few billion dollars. That is child's play for them.
What would have is two things in my view:
- the community would fork again, preferring not to have Wall Street overlords
- the community would have a ton of money, accelerating the transition to something bigger post fork
Hive will remain an oasis in the middle of the apparent centralization drive within cryptocurrency. Bitcoin is a unicorn, likely operating well into the future without interruption. There could come a time where the network is taken over with its own form of money attack but that would require buying enough mining equipment to control the hash.
The ideals and values of Satoshi are throughout the cryptocurrency industry. Unfortunately, it appears most do not realize how centralized many of these entities and networks are.
As Wall Street moves in, it will become clearer to people. This could make Hive more attractive.
Of course, people will have to look for it since it will not be listed on the most popular exchanges.
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