Factors That Influence My Investment Decisions in Cryptocurrency

in HODL4 months ago

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Blockchains and the gamification of cryptocurrency's are nice and all but If we detach financial incentives derived from speculative analysis when we want to make our choices in acquiring specific type of cryptocurrency, say there were no sort of financial returns, just based on what they can do as a native currency, Hive is definitely one of the cryptocurrency's that will top the chart, how many others can you say this for?

With Hive, you have access to a robust protocol that is decentralized, censorship resistant, a governable system through the tactics employed by the most advanced method the world of blockchain technology has yet seen, DPOS, Delegated proof of stake, which is directly fostering the most advanced mode of distribution presently in the world of cryptocurrency on Hive.

What this means is that every stakeholder is a participant in the governance of Hive ecosystem and a distributor of that currency through the Hive social media platform.

This is one of the questions I ask myself before delving into a Blockchain and investing in its corresponding cryptocurrency.

Besides financial gains, what else can the token do? This is different from the "use case" we are used to looking to see when a new crypto is on the block, majority of use cases only exist because of the financial gains people want from the project.

For instance Bitcoin as a piece of technology, besides the potential financial gains acquirable from holding Bitcoin, Bitcoin is simply a digital public distributed immutable ledger that facilitates borderless peer to peer money transaction without the need for the bank.

Obviously this is 'useful' enough for me, for you, for absolutely anyone, Bitcoin needs to offer no financial incentives before it can be widely adopted, just like the internet.

Think of Ethereum, you pay Ether to use Ethereum no matter how infinitesimal it(fee) is. That's a use there because of how robust Ethereum blockchain is, probably not as intrinsically as important as Bitcoin because it is more applicable to enterprises but it occupies the number 2 largest crypto in existence according to coin market cap.

This confirms my assertions to a large extent, only that the everyday person may not directly feel the impact of Ethereum and have reasons to hoard it beyond financial returns. But this is subject to change as Ethereum plans to move to a POS mechanism where Stake will determine governance sometime this year.

I might be very wrong though, I mean, what can you do with Dogecoin besides holding it? But Dogecoin is Dogecoin and some people still think to hoard it.

I read a statement from someone in this space, I can't remember exactly who but it went like this "Creating a solution to a problem is more important than creating a problem for a solution". Hive creates a solution for a problem, so does Bitcoin, maybe even Ethereum, perhaps there are others I'm not mentioning, but you get my drift.

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Lastly, holding Hive, gives me enough resources to perform unlimited operations within my favorite and most used Dapp in the world, Splinterlands, this will most likely be the format going forward.

Solutions

This is the first thing I look out for before investing in any cryptocurrency. I aim to invest in solutions. Hive is a solution and a progressing one at that.

De-Fi Capabilities

The second thing I look for before investing in any Blockchains crypto ecosystem are its earning mechanism and over all de-financial ecosystem.

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Image credit: @sidwrites

If you like interesting and simple, you'd love to roll with Hive, this image is one of the simplest info graphics explaining the financial gamification part of Hive, how wouldn't anyone love to participate in this! If Bitcoin were this easy to operate and navigate in its 4th year, a whole lot more people will be aware/invested in Bitcoin today.

There are also other factors that contribute to my investment decisions but these are the first important two I will like to discuss in this post, in another post, I will talk about other factors like presence and drive of the community, security, longetivity e.t.c.

I wonder what factors contribute to what drives your investment decisions, it will be nice to have your opinion.

Thank you for reading.

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The brain behind hive is still amazing till tomorrow. DPOS is one of the few things that increased my belief in this blockchain.. your investment tips show a lot of experience.. i hope to learn more in your next post ..

Ah please my investment tips are for entertainment o, I'm mostly just high on Hive hehe

lol

Before I invest in something, I try to visualize the possible earning and lose range of the investment. Mostly, as the risk raises up, I decrease the amount of allocated value to minimise the risk that I take. Otherwise, I seek for an operating mechanism to put my money on it like Hive :)

We are speaking the same language my man!