The following commentary represents my musings on HBAR and cryptocurrency in general. It is offered for entertainment and educational purposes only. If it makes you engage in critical thinking on this topic, it has done its’ job. It is not financial advice.
HBAR, as you may already know, is the token used to power the Hedera Hashgraph platform.
By way of background, Hedera Hashgraph is a distributed ledger technology that is generally faster and more secure than traditional blockchains. It’s a directed graph data structure with a distinct set of rules, which can provide businesses and other organizations with a distributed consensus platform that is reliable and energy efficient…and very cost effective.
All of this means that Hedera Hashgraph has great potential for genuine utility. However, it is not generally promoted as a “store of value”, which is the way Bitcoin is usually presented.
Well and fine, but can HBAR make you rich?
Currently, HBAR is selling for around USD 0.06. Yup, six cents a pop! There is a potential maximum supply of 50 Billion HBAR, and there are currently about 33 Billion in circulation. This means the total current capitalization of HBAR is about $2 Billion.
World GDP is around $100 Trillion at this time. Let’s imagine that, because of Hashgraph’s tremendous utility, HBAR is able to capture 1% of world economic activity over the next ten years. That would mean a total capitalization of $1 Trillion.
One trillion USD divided by 50 billion HBAR leaves us with a value of $20 per HBAR. That is a 33300% increase over ten years. 333 times your original money!
OK, think that 1% of world GDP is too crazy a number? Cut that to 0.1%, and the return is still 33 times original money. Can the stock market do that? Can Bitcoin do that?
Perform the same arithmetic on any token you like, provided that token’s platform is robust and easy to use. The results are eye opening to say the least. If Ethereum captured 1% of world economic activity over the next ten years, it would be worth $8333. That is about 4 times original money.
In order for Ethereum to meet HBAR’s potential at 1% WGDP, Ethereum would need to capture 80% of WGDP. Preposterous. Even to meet HBAR’s potential at 0.1% of WGDP, Ethereum would need 8% of WGDP…not preposterous, but certainly a stretch!
This may be a crazy, fast analysis of HBAR’s potential. However, if you think it’s nuts, just perform an experiment: Fully mint a simple NFT on several platforms, including Ethereum and Hedera Hashgraph. Compare your experience, speed and costs.
I did. It made my head spin.
Again, I am not a financial advisor. I am just a guy who is fascinated by digital technology of all kinds. Hope you enjoyed my musing.