This shouldn't be taken as financial advice, it is purely my personal perspective view of Bitcoin and Hive and what each represents for me.
It has been a year-long bear market, and the recent crash has got some of us discussing the low price of tokens opportunity presented. While some panic, some see the opportunity to increase their holdings.
I get the question every now and then about which cryptocurrency to buy, Hive or Bitcoin. While both are cryptocurrencies I personally believe in and would like to diversify into both I presently have no Bitcoin and would be approaching this article from a preference point of view.
Bitcoin
Bitcoin remains the king of cryptocurrency, it started it all for us to be here today with thousands of cryptocurrencies now in the market. As matter of fact, I always recommend reading the Bitcoin whitepaper for anyone new and keen on getting involved with cryptocurrency, not many of us can grasp the details of Bitcoin white paper at a read but with a keen interest in reading it, it gives the idea of how it all began, what it stands for and the possibilities of what Bitcoin is capable of.
I think from the fundamental knowledge of Bitcoin everyone should be able to make a sound decision on how to relate to it.
The monetary aspect of Bitcoin has earned it the term digital gold, a digital store of value, and rightly so it has so far outperformed other forms of assets despite its volatile nature. The problem for me though is I want my Bitcoin to earn passive income for me, and there aren't many options out there to earn passively from my Bitcoin holdings. So I am left with the option to seat on my bag of Bitcoin with the hope of price appreciation.
Hive
With the market crash opportunity at present, if I have to buy any cryptocurrency, I will head the list before diversifying to other coins, and the reason is mainly that I can earn passively with Hive.
For those of us on Hive, we all know through the staking of Hive which is referred to as Power Up, a curation reward is earned, and over time tokens earned through this exercise add up. In addition to curating with Hive Power, it does play a role in governance as well which does not impact our earnings but is worth mentioning.
Hive could be converted to HBD to earn 20% APR in savings, and the same HBD or Hive could be placed in liquidity pools on Cubfinance of Polycub for returns in DeFi.
Once on Hive, the options broaden, and at some stage, it becomes a dilemma over which project to tap into as the opportunities increase.
Staked Hive could also earn you other tokens as we have witnessed in the past airdrop or the ongoing Larynx claimdrop.
Therefore earning passively is my focus, I am not good at trading, but it works like a charm for those good at it. I prefer my cryptocurrency holdings to earn yields for me. I could do DCA for Bitcoin with earned Hive, but I can't do the same with Bitcoin. One can earn passively for me, the other a store of value, they are both worth having in my portfolio but for now, the focus is to keep increasing my Hive stake.
We owe it to ourselves to make Hive great
Image by @doze
Posted Using LeoFinance Beta
