WHY THERE ARE NO INSTITUIONAL INVESTORS ON HIVE

I write these posts off the top of my head. Most of the things I say here are options and observations not facts per se (because I do not have charts or data to back my claims), so before engaging with the post, I want this to be clear. This is just my addition to some of recent the conversations that are being had around Hive.

Occasionally, we have someone or a group of people talk about getting investment on Hive. Most times I don't know what that means by investment to be honest because of their follow-up comments. What type of investment are seeking? I think people should be more specific about the type of investment they want to see on Hive as it could create more clarity around such discussions.

If we are going the retail investment route, I think that's possible. We can set up our chain in a way that attracts small investors. I don't even like the word investors, I think a more appropriate word to use in this instance is consumer/customer, not investors. We need people who want to use the kind of services Hive Dapps offers. The problem now is, we don't have that many viable products.

There are very few (active) use cases for Hive that are not speculatory. By that I mean there are fewer things (products and services) people can use their hive (directly) to purchase. This might not matter too much if we were a VC chain. We would simply ride the hype wave and pump our bags.

Fortunately, in some parts of South America people are beginning to embrace HBD (not Hive per se), using it for peer-to-peer transactions and creating circular economies. That's a good thing and I believe this will grow in due time, however, this isn't the type of development most people here clamour for based on my understanding.

When a hiver tells you he wants investors to come on Hive, he or she mostly talks about institutional Investors. These are the types of people who can bring billions into the system. Most people holding the token want institutional investors so they can sell a huge chunk of their stake and retire. There is nothing wrong with wanting that but I don't think it is feasible.

First, I understand that most institutional investors want control over your token supply and chain. Hive already has its whales and I don't believe they are willing to relinquish their power. The Steem hostile takeover is a typical example of why we won't and can't have that type of investment in Hive ( this is a simplification of what transpired between the community and Steemit).

To control Hive you have to buy out the witnesses, whales and a significant amount of the token supply (the Koreans have that already sorted out). Even if you were able to achieve these things, chances are the core community will fork away. So no institutional Investor will put billions into a chain like Hive and we should stop dreaming of such.

Hive's best chance of sustenance and growth is to improve on its strengths. For instance, Hive has strong communities in third-world countries. We need to continue to grow these communities. Unfortunately, these people have little purchasing power and are regarded as exploiters by many of the Hive elites. They are not the type of people the supposed Hive founders and elites want on the chain, but unfortunately for them, these are the only people willing to use the chain (for now).

There is a missed opportunity here for Hive to grow in the manner it should and this is mainly because we have refused to accept our reality as a chain and community. So it's going to be a slow and painful grind to our collective destination or goal, which I want to believe is the mass adoption of the Hive blockchain. The chain will continue to allocate resources to promote Hive to the people who do not want to use it.

Even when we onboard the people who want to use Hive, how do we ensure we get the most of them or create a relationship that is beneficial for both the chain and users? Unfortunately, many people put the burden of this problem on users, but I believe the onus is on the Dapps and stakeholders to adequately appropriate Hive resources and generate revenue. If Hive is not a charity organisation then Dapps (who i believe benefit more from this said charity) should run like a business and that entails being efficient and profitable.

I will close with this: hive is different from most Blockchains. It is more or less a grassroots project for the people and by the people. It can only grow through word of mouth and the extension of communities in South America and Africa. Once we have the number every other thing falls into place–positive network effect. Today you have barely 200 people (mostly from Africa and South America) creating awareness for Hive on Web 2 and are gaining traction. What happens when you have 1000 or 10,000? Cheers!

Check out this short thread on projects with potential airdrops.

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