One thing about the market and when it’s pumping is how it increases one’s expectations. One minute you are cool with your portfolio, of course you were hoping that some day it increases so you can take some profit and feel good. Like reaping what you have sowed, it makes no sense that you are grinding and accumulating wealth and end up not spending it. What’s the use of grinding so hard. All of a sudden the market pumps, your expectations get so high and you change your way of thinking because you earn higher now due to the Bull market.
This happens to me, like creating content on Hive during the Bull market, you earning higher because the value of HP is higher but instead of content creation, lets imagine the scenario on play to earns. Lots of play to earn players especially splinterlands reading this can relate. During the Bull market, their asset worth more, their incentives worth more and the native token worth more. This makes playing the game more fun as you earn more. Expectations start getting higher and higher and people start having good reason to HODL, and keep accumulating because sometimes it’s in our nature to accumulate wealth to our satisfaction before we start spending them.
The Bear Test
Bear season is inevitable, the moment you know this, the less panic you feel when the bear season comes. During the bear season, lots of things happen, value of incentives start getting lower, assets start getting lower in value and people’s earning starts depleting in value. The reward might still be the same but the value is lower. For instance if you used to earn 3 DEC token for winning a battle, if one 1 DEC token is $0.1, that means you earn $0.3 for every battle you win. During the bear market, if the value of DEC goes down to $0.05 this means that the value has reduced from $0.3 to $0.15 for winning a battle.
This is what we are experiencing on Hive right now, the value of Hive reduced making the voting value reduce. This has someway affected some content creators, they get discouraged to create content now the value is lower due to dip. Some players on play to earns will start feeling the same. They might stop playing or stop investing in the platform because they feel it’s value is low and not enough to sustain them anymore. The bear market can really test people’s patience and how much they believe in a project. If you believe in the project’s utility and you are ready to stay with the project for long term even during the bear then the bear market has nothing on you.
Product Shaping To Facilitate More Adoption
I was watching a video on Twitter where the co founder of Axie infinity was giving his insights on how to sustain a play to earn platform during the bear market. The Axie infinity space is tough right now due to the $650 Million Ronin hack attack coupled with the bear market. It’s still a miracle that the platform is still standing after everything, after they recover from this, they need to give a seminar on how to weather storms like this.
Shaping and improving the game is one way to keep surviving the bear market in play to earns. This way players find reasons to keep playing and accumulating these incentives for the future. Building more utilities and adding more use case to these products to keep the players playing. Imagine the attributes of your assets increasing the more you play the game during the bear market, this will keep you focus to want to keep upgrading your assets during the bear season so that when the Bull season arrives, your asset is worth more.
But this can be successful only with a project that has the best interest of the community in mind. Projects with vision and always ready to put in the work will always try to sustain the platform during bear markets.
Posted Using LeoFinance Beta