Finally we back on Sunday again, and on Sunday I always have this Sunday Reflections post, a post that resumes what I do on this week. Of course we do not discuss everything here, only one of two points that are interesting.
On this opportunity I might change the tittle to Insightful Sundays, well the essence is still the same however I like the wording more... Because this time my main point about how I respond to the HIVE Price.
Hive Price is rising at the moment, we do not know how high and how long it will be, but one thing for sure most of us here on HIVE Blockchain should be happy. Most of us, which means not everyone here... I am part of unhappy people here because with the HIVE rising, there are tokens I want to buy from hive-engine are getting expensive..
But before I talk to long, first and always I say this:
This is Not a Financial Advice
I am not an expert crypto trader, or experienced crypto enthusiast, so what I have said here is purely my personal opinion which are highly possibility that is not valid. The reason I post this one is to share my opinion and try to get feedback from you guys.
Ok back to the main point.
It is not about I am not happy we are getting more from the price increase, but its more like I need to make some adjustment on how I will buy these tokens. Most of my activity on HIVE right now are not far from the #saturdaysavers club, so everything is about making some saving, or being able to save up on some buying, expenditure and purchase.
And this is my thought about the HIVE price increase. some second token are increasing, and some are dropping in HIVE. There are reasons I guess relate to these:
- Some people want to get more liquid $HIVE. So selling second layer token should be the easiest way. What next step they do are not important, because those varies a lot between people.
- Some people prefer to set things on the more stable currency or to the referred currency, in most case it is USD. So whether the hive is rising or dropping, what they care is the USD value of the tokens. Mostly Splinterlands token are like this, SPS and DEC.
Now lets relate those things to the token I have been buying or care about.
$BRO
$Bro is really high value token, similar to $INCOME. Their price was around 8-9 $HIVE each. It was, but right now they are dropping. I guess many people who invest on $BRO (and $INCOME) are more interesting with the USD value rather than $HIVE.
So when $HIVE is rising, if you already have plenty you can get them with cheaper price on HIVE-wise. However on real fiat value, the price is the same.
This happens to some tokens with pegged value, people sell it and seems they are taking loses, but if you see it on fiat to fiat based, even they lose 5-10% but hive is rising 20%, they still make 10% margin up.
$PIMP and $ALIVE
These two basically has the same effect with $BRO, their price is dropping due to $HIVE price rising. However we need to take count that $PIMP and $ALIVE are tribe tokens, so they will keep be printed and when HIVE rise, the pressure to sell them is higher.
Unlike $BRO, I believe these two will drop a lot more, hive-wise. So I am guessing overall there are time when they price will drop more in USD value too, until a new equilibrium is found.
This is one of the main reason why I haven't bought $PIMP and $ALIVE on a big scale. I believe the price will be shaky later.
$THGAMING and $PGM
Hmmm, I like these tokens but I have to be honest here.... I am guessing these two will have their life or death situation. They are cheap tribe token, price-wise, not the quality. So I believe most of the holders are not very committed, they are into the tokens for funs and taking profits only.
So I need to take stance here, whether dump and leave them before they die, or have faith on them and risk I am losing the value. These token will drop and keep dropping, possibly onto a level we might think they are dead... then rise again to a certain number as their new equilibrium price.
Ok What's Next?
First, we do not know how high HIVE will go up, so if you want to buy some tokens... my suggestion is to do the averaging cost first, or people like to say it as Dollar Cost Averaging (DCA). Because the token price can be drop higher and you will feel unhappy for spending more than you should...
Second, focus on your target list. My guess is we will see more shit tokens second layers token rise and down. This might make us distracted and spend on things we do not need because it becomes cheaper.
Third and the last one is try to set some position on buy, because some people is selling things now... I get 1000 $PSX because someone just dumped all and it hit my order list. You never know what happen next, maybe HIVE jumping to 0,6 then some people will blindly dump their tokens.
Ok that's for now. We all happy HIVE price is rising but we need to be aware that it is not a guarantee everything is on profitable condition right now. Keep #DYOR and thank you for reading my post here.
Don't forget to leave some feedback yo....
Posted Using InLeo Alpha
