This is a value for value post: see the explanation in the footer.
A couple of days ago @taskmaster4450 wrote Hive Reputation: Is It Worth More Than $5K?. Needless to say my Hive account is worth much more than that and my reputation alone is worth a great deal more to me.
Valuing a business
I look at my Hive reputation as I would value any business. What is the potential future revenue I can make from Hive times some multiple to give a valuation. Add to this the current assets and you'd arrive at a valuation. There's also a business concept of goodwill: I'd like to think the votes I have as a witness (you can vote for me here) are a strong indication of accrued goodwill [1].
This is not to say that I am on Hive purely to earn money, but the fact that I can earn money from the things I do here means I am able to devote more of my time to this platform than I could if it was just a time suck.
I may even value my account on Hive higher than anyone else would, but a conservative valuation for others to look at might be five times an annual earning potential of an account.
I would also argue that powered up Hive and savings as HBD should add to this valuation as additional invested assets. These should also carry a multiple as well because once you have powered up Hive you’ve made a statement of your believe in the future of the collective platform. That in itself is another investment.
Reputation
Reputation allows us to run services on Hive which don’t have to be completely trustless. Trustless is always an incredibly high technical bar and adds a huge overhead when thinking about or building any service. Where the financial limit of trust is a small fraction of the reputation value of the party you are trusting: you can take that risk easily.
Hive has replaced smart contracts in code, with a smart community to read contracts.
The contract may not be in and of itself "smart", but if the contract is a pledge written in public on Hive, the rest of the community is smart enough to read it. If anything goes wrong, the reputation of the side which breaches is severely tarnished: that is your protection. It's not code, but arguably it's better, it's community code.
Identity
A note about Identity: I don't need your Government state approved identity to trust you and you don't need mine. My continuous and public history on Hive is my identity and it tells you far more about me than a picture of a Drivers License.
The identity that matters is the one the community sees. It is the sum of my behaviour and personal interactions with so many of you here.
Community of peers
This is security through trust and community and it has been the basis of human business transactions for thousands of years. What we have built on Hive is the way to make these transactions inspectable and immutable. And the method of keeping us honest is something far better than the Eth chain validators or miners of BTC: it is the community of our peers.
Value for Value
For the last few months while building @v4vapp I was generously supported by the DHF. Going forward I have a much more modest support which covers direct server costs and a little of my time.
If you appreciate the work I do on and around Hive, you can express this directly: upvoting posts on Hive is great. Also consider a direct donation (there's a Tip button on Hive or a Lightning Address) on all my posts.
Support Proposal 244 on PeakD
Support Proposal 244 with Hivesigner
Support Proposal 244 on Ecency
Vote for Brianoflondon's Witness KeyChain or HiveSigner
- Get Fountain for Podcasts and 3speak shows
- Find me on Telegram
- V4VAPP Support on Telegram
- Vote for Brianoflondon's Witness KeyChain or HiveSigner
- Vote for Brianoflondon's Witness direct with HiveSigner
- Find my videos on 3speak
- Verify my ID and Send me a direct message on Keybase
Footnotes:
1. ChatGPT's answer to "how would you value the goodwill associated with a popular social media account?"
Valuing the goodwill associated with a popular social media account can be a subjective and complex task. Goodwill refers to the intangible value of a business that arises from factors such as reputation, customer loyalty, brand recognition, and other non-physical assets. When valuing the goodwill of a social media account, here are some factors to consider:
Reach and Engagement: The size of the account's audience, including the number of followers, subscribers, or likes, is an important factor. Additionally, the level of engagement, such as comments, shares, and interactions, indicates the account's influence and potential for generating value.
Niche and Target Audience: The specific niche or industry the social media account caters to and the relevance of its content to a target audience play a significant role. Accounts with a well-defined and engaged audience within a particular niche may have higher goodwill value.
Brand Reputation: The reputation of the social media account and its associated brand is crucial. Positive sentiment, trustworthiness, and authenticity contribute to the goodwill. Factors such as the account's history, track record, and quality of content also influence brand reputation.
Monetization Potential: The account's ability to generate revenue through partnerships, sponsorships, advertising, or other monetization methods should be considered. Accounts that have a proven track record of generating income or have established partnerships may have higher goodwill value.
Intellectual Property: If the social media account has any intellectual property associated with it, such as copyrighted content, trademarks, or patents, it adds to its overall value. However, it's important to ensure that the intellectual property is legally protected.
Transferability and Sustainability: Assess the ease of transferring the account's ownership and the sustainability of its popularity. Factors like the dependence on the original account creator or the risk of losing followers when ownership changes can affect the goodwill value.
Competitive Landscape: Consider the competitive landscape and the presence of other similar social media accounts within the same niche. The uniqueness and differentiation of the account compared to its competitors can influence its value.
It's important to note that valuing goodwill is subjective, and different methodologies, such as income approach, market approach, or cost approach, can be applied depending on the circumstances and purpose of the valuation. Consulting with professionals experienced in business valuation or intellectual property rights might be beneficial in determining a more accurate value for the goodwill associated with a popular social media account.
ChatGPT's answer to "how would you value the goodwill associated with a popular social media account?" ↩
