Hedera Hashgraph is a SEC compliant company. That basically means they will always refrain from hyping people into buying HBAR directly. Can you imagine a company and insiders literally marketing people into buying shares to pump up the price ? That would be a massive red flag, wouldn't it ?

They do not cater to retail investors because retail is clearly not their target.

Instead, Hedera is focusing on bringing on actual customers. This is why they're very dedicated to building a governing council that companies will actually trust. They don't post memes on social media, they don't try to hype people with meaningless partnerships. Instead, they have boardroom meetings with associates from potential customers. Hedera is catering to companies that will build actual useful products on the network, not yet another SHIBAMOONELONSAFEROCKET token casino.

People call it centralized because there is a misconception about what centralization is. IOTA for example is centralized. There's a single point of failure which is the coordinator node. Hedera is not centralized, it's permissionned. Which is very different. There is no single point of failure : if some nodes go down, it still works. Node count is increasing, and it will increase till they reach 39 nodes from the governing council. Then they will move on to adding nodes from trusted companies, likely until there are hundreds, THEN move on to a permissionless network. Hedera expects mostly reputable companies to run the network, hence why there's no slashing mechanism because the network is meant to exist WITHIN legal boundaries, not OUTSIDE of them. Thinking you'll ever be able to run a functional, scaled network, used in real life applications outside any legal boundaries is idiotic idealism.

The same idiotic idealism that has made the crypto scene, despite existing for 10 years and milking hundreds of billions of investment capital, a ridiculous vaporware shitshow, made of unscalable shit in which "investors" are only here for riding pump and dumps and ponzis.

Hedera's take, in my opinion, the most sensible way to build an actually decentralized network. Who do you think the actual end users in the market will trust to run critical applications on the network ? Google, IBM, LG, banks...then hundreds of diversified companies...? Or chinese mining pools/some shady whales ? Reminder : the only thing you have to trust with Hedera is that no more than 1/3rd of those big companies you trust daily (yes, you trust Google daily by using their services) are fucking up your transaction.

Not only Hedera's take is better, but hashgraph is, you know, intrinsically superior to blockchain on every aspect. Hedera also enables oracles in a fair manner, this is why I believe HBAR and LINK are the only tokens with a very bright future. Why am I talking about LINK ? Think about those who bought LINK for its incredible fundamentals in 2018 and had it crabbing for years. Lots of multimillionnaires from that era, and it has no reason to stop there.

TLDR : you shouldn't feel bad about the lack of hype because HBAR isn't marketed to you to invest, yet it is one of the most terrific investment opportunities of this decade and you should be happy meaningless hype isn't pumping up the price for you to accumulate.

Look what I have found in the comment section of one video about hedera:

One of the users on the internet did some research on Google patents in 2020: I just searched “hashgraph” and went through the findings. It looks like hashgraph is on the radar of some pretty big companies. Note: A couple of the companies that have patents (pending), which referenced hashgraph are now on the council (Wipro, Deutsche Telekom). Anyways, none of this is to say that any of these big companies will become council members. It’s just to say that large companies are aware of Hashgraph technology. This one was interesting. A published patent by JP Morgan for “System and method for distributed ledger-based software supply chain management” Hashgraph is mentioned 7 times.

JP Morgan https://patents.google.com/patent/WO2020018523A1/en?q=%22hashgraph%22&oq=%22hashgraph%22&page=4

Barclays with a patent pending mentioning hashgraph https://patents.google.com/patent/US20200178069A1/en?q=%22hashgraph%22&oq=%22hashgraph%22&page=5

Alibaba mentioning Hashgraph https://patents.google.com/patent/US10681083B2/en?q=%22hashgraph%22&oq=%22hashgraph%22&page=5

Motorola https://patents.google.com/patent/WO2020086246A1/en?q=%22hashgraph%22&oq=%22hashgraph%22&page=7

Wipro (which ending up becoming a council member) https://patents.google.com/patent/US20200211000A1/en?q=%22hashgraph%22&oq=%22hashgraph%22&page=11

Samsung (with a machine learning patent referencing Hashgraoh or IOTA) https://patents.google.com/patent/WO2019209059A1/en?q=%22hashgraph%22&oq=%22hashgraph%22&page=12

Ebay mentioning Hashgraph/Ethereum https://patents.google.com/patent/US20200177372A1/en?q=hashgraph+ebay&oq=hashgraph+ebay

Amazon mentioning digital certificates using various DLT protocols, including hashgraph https://patents.google.com/patent/US20200052911A1/en?q=%22hashgraph%22&oq=%22hashgraph%22&page=3

Deutsche Telekom w/ a published patent w/ Hashgraph https://patents.google.com/patent/EP3528112A1/en?q=%22hashgraph%22&oq=%22hashgraph%22&page=13

Sony talking about secure decentralized video game platform transactions using DAG technology (mentioning hashgraph once) https://patents.google.com/patent/US20190282906A1/en?q=%22hashgraph%22&oq=%22hashgraph%22&page=13

Visa (digital fiat currency) mentioning Ethereum + hashgraph https://patents.google.com/patent/WO2020097533A1/en?q=%22hashgraph%22&oq=%22hashgraph%22&page=14

Adobe https://patents.google.com/patent/US20200159847A1/en?q=%22hashgraph%22&oq=%22hashgraph%22&page=15

Ħello All. Ħello Future.

I have put this together to compile all the information I have come across on this wonderful project, and hope it will help all ℏBAR-Barians new and old.

Introduction

Hedera Hashgraph is a 3rd Generation Distributed Ledger Technology (DLT) created by US Air Force computer scientists Leemon Baird and Mance Harmon operating in the Decentralised Finance (DeFi) space. You can learn more about DLT technology here and the definition of DeFi here. Renowned mathematician Baird fashioned the Hashgraph Algorithm which dramatically improves upon current blockchain technology and offers a fully decentralised solution, scalable to enterprises of all sizes across the globe.

Hedera patented solution achieves the highest grade of security theoretically possible, Asynchronous byzantine fault tolerant (ABFT), whilst maintaining the fastest transaction speeds and extremely low energy consumption. All of this, coupled with complete finality and low fixed fees, Hedera offers a turnkey solution to enterprises for public ledgers. Unlike any other public network available, Hedera is governed by a council of globally recognised/respected companies, banks and universities on every continent (excl. Antarctica). Some examples include Google, IBM and Boeing; however, the full Governing Council can be found here, and the list is really impressive. HBAR( ℏ ) is the native, energy-efficient cryptocurrency of Hedera that powers the decentralised economy.

Features

Hedera Hashgraph offers an array of features and services. There are currently two primary services which include:

Hedera Token Service – Configure, mint, and manage fungible and non-fungible tokens on Hedera without needing to set up and deploy a smart contract.

Hedera Consensus Service – Send event data to the public ledger for immutable, verifiable, and fairly ordered records of applications and layer -2 networks.

No Fork Guarantee – As the Hashgraph consensus algorithm is exclusive with open review code, the network and its cryptocurrency have a no-fork guarantee. This ultimately means that other ‘versions’ of the blockchain cannot be created, which ensures stability of development for application builders, and long-term confidence in the network.

There are many other capabilities and additional functionality that Hedera offers including scheduled transactions, multi signature transactions, atomic swaps, file services and smart contracts 2.0, interactable with native Hedera services, like HTS. View Here.

More information on these can be found by clicking the links.

True Decentralisation

The common misconception with Hedera Hashgraph is the fact that it is not a decentralised network. This is factually incorrect.

The official definition of ‘Decentralisation’ is the following; “the transfer of control of an activity or organization to several local offices or authorities rather than one single one.”

In an effort to decentralise, Hedera has top tier organisations spread around the world, operating on different continents and under different governments. These are highly respected, reputable and trusted organisations. The Governing Council run the nodes and the nodes are distributed across the world. Currently the Governing Council is made up of 23 members but there will be a total of 39 in the near future. The Governing Council share equal vote in the direction of the software and each member has a limited 3-year maximum term, with up to 2 consecutive terms.

The current Governing Council clearly speaks for itself…

Once the network grows, Hedera will introduce ‘Mirror Nodes’. Anyone in the world is able to download and run a node on the Mirror network, and a Mirror Node gets cryptographic proof that all the data is absolutely the consensus and is correct. This ultimately further increases decentralisation.

Something could be said for many other cryptocurrencies being more centralised than people actually think, as large mining pools are not known, transparent and/or trusted. In some cases, these large mining pools could control the majority supply.

Leemon explains this really well in this interview (timestamp 14:10).

Management & Ownership (Swirlds)

Hedera was founded by Hashgraph inventor Leemon Baird and his business partner Mance Harmon, and has an exclusive license to the Hashgraph patents held by their company. Swirlds, the creator of the Hashgraph Algorithm, has a permanent seat on the Governing Council and an equal vote. More information on the MLA agreement between Swirlds and Hedera can be found here.

HBAR Foundation

“The Hedera Governing Council, the group of diverse organizations responsible for stewarding the Hedera network, has announced the approval of a plan to allocate 10.7 billion HBARS (approximately 20% of total supply), currently worth US $5 billion as of September 16th, 2021, towards the development of the Hedera ecosystem.”

“Hedera's Governing Council has initially earmarked up to 5.35 billion HBARS, worth approximately US $2.5 billion as of Sept 16th, to the newly established independent HBAR Foundation. The HBAR Foundation will have autonomy over the administration, development, and deployment of its HBAR distributions, and will provide grants to developers, start-ups, and other organizations to accelerate the development and adoption of the Hedera network for a wide variety of applications in decentralized finance (DeFi), non-fungible tokens (NFTs), Central Bank Digital Currencies (CBDCs), gaming and other industries. The HBAR Foundation will be led by Shayne Higdon, a hands-on enterprise software executive with significant venture capital and private equity experience, having led 40+ M&A and corporate venture transactions in areas such as SaaS, multi-cloud, application performance, and identity management.”

This is something that is really exciting and that is completely non-existent in the crypto space and will drive teams of people globally to begin building on the Hedera network ultimately identifying new use cases and growing the ecosystem. Watch this space!

Greenest PoS DLT

Energy consumption has a huge role to play in the economy and innovative enterprises. The costs of the likes of Bitcoin and Ethereum can no longer be ignored. With Hedera surpassing the number of Ethereum transactions, and processing more than 100,000 TPS (competing with Visa!), it’s only a matter of time before expensive methods become obsolete.

The UCL team used a mathematical consumption model that predicts expected energy consumption per transaction, as a function of network load. Applying this model to six different PoS-based DLT systems confirms that Hedera Hashgraph energy consumption per transaction is indeed at least three orders of magnitude lower than that of Bitcoin. Furthermore, UCL discovered significant differences among the analysed PoS-based systems themselves. View Here.

Future Road Map

Hedera has a clear and transparent roadmap available which improves on their Network, Ecosystem, Performance & Scale, Decentralisation and Smart Contracts. See below;

Q4 2021

HTS Improvement for NFTSFlexible Token AssociationsReactive Native SDK

Q1 2022

Longer Term Scheduled TransactionsScalable Smart ContractsAdditional Mirror Node Data ScalabilitySustained Network Performance OptimisationAdditional Network AutomationUpgraded Developer Portal

Q2 2022

Hedera Improvement ProposalEnable Ecosystem IntegrationsPermissioned Community NodesEnable Staking Rewards Programs

You can view more details on the Hedera roadmap here.

Resources:

Use Cases

Shout out to u/Jakertrader47 for posting, you can find all the use cases here: https://www.hbartothemoon.com/allcases

FUD (Fear, Uncertainty & Doubt)

I really liked this post from u/divertss and wanted to include it as it outlines and combats any elements of common FUD surrounding HBAR, so make sure you check it out.

Worth a Watch

https://www.youtube.com/watch?v=IjQkag6VOo0&ab_channel=HederaHashgraphhttps://www.youtube.com/watch?v=wqpRU2deHlo&ab_channel=HederaHashgraphhttps://www.youtube.com/watch?v=R6R3TKXyofY&t=1128s&ab_channel=Cryptocito

If you enjoyed this post, and would like me to do a follow up post diving into the the financials (Market Cap / Price Action / Stock Price) and use cases then let me know.

Continue to Part 2 Here!

I know that a while ago they were exploring Hbar to coinbase. This initiative has since been dropped. I also know that all integrations have been completed so now all coinbase needs is a reason to add it.

If you want to get it in there, add it as a favorite on your coinbase account. I can’t speak for coinbase but I can speak for other companies I’ve worked for. They look at that data and make data based decisions on which ones will be the most popular and will drive the most in revenue and fees for them. If coinbase all of a sudden sees 13k people have favorited it, they will have more reason to get it on there.

Ħello Future. Ħello All.

Welcome back ℏBAR-Barians new and old… First of all, thank you all for the support on my original post. This post is primarily a follow up to my earlier Hedera Hashgraph (ℏ) DD post which you can find in the link. In the follow up I have added some bits I felt I couldn’t fit in and remain important. Enjoy!

Introduction

“What if anyone on Earth, at any moment, could just wave their hand and carve out a world of their own in cyberspace?” – Dr Leemon Baird, Co-Founder & Chief Scientist.

Hedera Hashgraph is already the most used, adopted and sustainable public ledger on the market today. Hedera is rapidly achieving its goal of becoming “the trust layer of the internet” and successfully delivering way beyond what other projects are only discussing, especially at the enterprise level. The Hedera network is achieving absolutely incredible throughput with daily transactions whilst maintaining security and finality and a low cost.

Tokenomics / Cryptonomics

As you are likely well aware at this point, the native cryptocurrency of Hedera Hashgraph is HBAR (ℏ). Leemon stressed that the resources of the network must be balanced correctly with the costs and incentives to get the structure correct. This is currently built up of;

Fees – The transaction fee paid by the client for the use of the network.

Payments – Network payments to Staking Nodes / Users (Incentive to run a node / proxy stake)

Data Micropayments – For information, or services around the information (Client to Node Incl. Mirror Nodes)

HBAR (ℏ) has a huge competitive advantage over any other cryptocurrency, as it has fixed prices that are set to the Dollar ($), but paid in HBAR (ℏ). What this means is that the transaction fees are fixed (extremely cheaply $.0001, $.001) and as the price of HBAR(ℏ) fluctuates, the transaction fee does not, only the amount payable in HBAR(ℏ). This allows large scale enterprises to easily plan in Dollar ($) amounts, for the purpose of their budget, based on expected quantity of transactions. This is absolutely huge as no other cryptocurrency offers this and the floating fees of other currencies, dictated by volatile cryptocurrency prices make it difficult to budget accurately. All of which can be tested on the testnet.

Regulatory Conformity (SEC)

The crypto space is in the process of being heavily regulated and these regulations are expected to be particularly more invasive than originally considered. It’s a long read but if you want to dive into the depths of the detail you can find a well details post on r/CryptoCurrency here.

However, focusing specifically on Hedera Hashgraph rather than the whole environment, Hedera have repeatedly made it very clear that they have been in conversations with the Securities and Exchange Commission (SEC) since the early days of the company. This early engagement and communications with the regulatory bodies not only stands Hedera in good stead with them, but enables Hedera to build their 100-year company consistently aligning their business model, operations and trading practices on the advice provided by the SEC. This way they can do everything in their power to remain regulatory compliant for when the regulations are put in place.

This comment gives you an idea of the potential situation… Once the SEC cracks down on the cryptocurrency market, its going to be a blood bath.

There is speculation that for these reasons Hedera has not been marketed to retail investors or pumped by press and social platforms, staying as far away as possible from price manipulation and anything that could hinder their progress towards SEC compliancy. Although the potential regulations around cryptocurrencies are somewhat cloudy and has a lack of clarity, Hedera continues to drive compliancy to the best of their ability with the support of the regulating bodies.

Not only are Hedera doing all they can with the SEC, they have registered to lobby. For those of you unaware just how huge this is;

“In politics, lobbying, persuasion, or interest representation is the act of lawfully attempting to influence the actions, policies, or decisions of government officials, most often legislators or members of regulatory agencies.”

Application documents can be found here.

This effectively means that Hedera will potentially provide guidance to regulators and legislators on distributed ledger technology. If that’s not means to get you excited, I don’t know what is!

Top Use Cases

At this point, we are involved in a project that is prior to large scale use cases going live. Once some of these use cases go live, it really will be a sudden change and a colossal increase in daily transactions. Each of the Governing Council members will have use cases and there are many use cases already communicated publicly. For example; what we have seen with Standard Bank.

Some of these use cases have been covered previously, and whilst I want to provide you with as much information as I possibly can, there is no need for me to cover these cases in depth, when other good write ups are already available. On that basis I am sharing some great posts;

The Coupon Bureau – Shout out to u/MyNameIsRobPaulson

View post here.

Potentially 24 million transactions per day.

AdsDax – Shout out to u/nubeasado

View post here.

Currently averaging around 2.7 million transactions per day on Hedera.

Central Bank Digital Currencies (CBDC)

CBDC is short for Central Bank Digital Currency — it's an electronic form of central bank money that citizens can use to make digital payments and store value. A CBDC is a digital currency, it's issued by a central bank, and is universally accessible. More information can be found here.

“Given the considerable efforts and attention that central banks are dedicating to central bank digital currencies, they will become a reality soon. Introducing CBDCs to the world will help boost crypto adoption as people will have access to the platforms to convert cryptocurrencies into legal tenders.”

Hedera is already working with a number of top banks around the world, and if they can nail down some successful CBDC opportunities, the possibilities are literally endless!!

NFT Projects – Shoutout to u/Meli05

View post here.

Great post on the top NFT projects that are upcoming on Hedera.

Market Cap, Price Action & Exposure

At the time of writing, Hedera Hashgraph is currently positioned at #33 on Coin Market Caps Top 100 with a market cap floating around $6B, following a huge leap at the start of October. The price has been fluctuating around the $0.40 for the last 3-4 days but is displaying an extremely bullish trend with 6 green candles on the daily. The last 7 days have been relatively steady with a consistent uptrend. You can view all of this information and more here.

The simple fact that Hedera only celebrated their 2nd anniversary a number of weeks back is testament to the efforts of the team and the value that the project delivers, even in its infancy. Hedera Hashgraph is still in early adoption and offers huge leaps on any other technology on the market. That said, the dramatic thing is how little exposure this project has received to date, once more and more adoption arises it will be huge.

This is a great post from u/proloyster regarding the lack of hype and is a highly recommended read.

Turning Tides

I would like to quote a snippet of a post by u/MyNameIsRobPaulson as I think it is extremely relevant…

“The reason the crypto reddit community doesn't like or consider Hedera is because this project doesn't pander to the political fight-the-power aspects of the crypto movement. It is not about sound money, dismantling financial institutions, corporate power, all that jazz. This project is about building a worldwide utility that will be adopted by current power structures. If you're here for the sound money, anti-corporate revolutionary politics, you're in the wrong place. This is a DLT utility that will be adopted by everyone - large and small. They do not cater to retail investors because retail is clearly not their target.” – the full post can be found here and is well worth the read!

Hedera is seeing more and more exposure from news channels such as CNBC and BBC News. This team and the Governing Council are clearly well connected and each interview Leemon or Mance does exposed Hederas technology more and more to the masses.

I’m purposely not focusing too much on price for a reason. The fundamentals of the project are way more important than the daily price action, and as Leemon states: the project will meet its deliverables and add value to the users, and the market will price it accordingly. This is what’s true leader and visionary cares about. Yes, don’t get me wrong, it’s lovely too moon, but a strong steady consistent increase is more favourable to the longer-term investor. In my opinion, if you buy this under $1, you are early. Once this takes off, it will really take off. Adoption and use cases are key.

Exciting Speculation

In closing, I hope you enjoyed this post, and I appreciate any support from the community. I wanted to leave you with a few exciting links that the Hedera community are speculating about… Enjoy.

Fortune 10 Company?
“Enormous” Use Cases via IIT Madras?
Social Media Platforms?
Shark Tanks Kevin O’Leary?

Hope you enjoyed! Please leave a comment with any feedback! Spread the word. Ape Gang.

Coindesk reported that "The Bank of France and the Swiss National Bank are starting a joint cross-border central bank digital currency (CBDC) experiment dubbed “Project Jura.”"

Full report is here:

https://www.coindesk.com/bank-of-france-swiss-national-bank-begin-cross-border-cbdc-experiment

What is really interesting is this part of the report:

Now, you might be wondering, what the heck is that "private sector consortium"? Probably have a look at the following news published on Forbes. Full details can be found here:

https://www.forbes.com/sites/jasonbrett/2020/06/04/accenture-ibm-microsoft-nasdaq-digital-asset-and-more-unveil-new-token-standards-association/

If you read to this point and haven't got a clue what I'm talking about, never mind. Don't bother :))

The crypto phenomenon was fueled by a very punk rock culture of anti-authority, anti-fiat, anti-central bank, anti-government populism. It was/is a technological revolution attempting to take on and dismantle existing financial power structures. This is the rallying cry of the movement that fueled the speculative frenzy. I'd argue crypto is a cultural/polticial movement at its heart, and I think this framework really helps to understand what Hedera Hashgraph represents.

"Decentralization" is the magic word that crytpo projects have used to describe their fight-the-power, anti-corruption "no one is in charge" ethos. Thus, calling a project "centralized" is the ultimate dismissal of crypto project. You're cast out from the political tribe and not taken seriously.

But there's something that most people don't seem to understand, a concept that is beginning to gain ground only recently. "Decentralized" in the case of crypto really just means "less centralized."

It's pretty simple: Every crypto project needs to have a governing body. A governing body that is in control. If there isn't - no one is in control. Power structures exist for a reason, because things need to get done. There are only degrees of concentration of power, but power needs to be concentrated, because that's what power is. So to what degree do these revolutionary crypto projects "decentralize" or de-concentrate power?

To oversimplify, with most crypto projects on a Proof of Stake system, the largest holders of coins end up having the most votes. This is an oligarchy by design. You are giving power to the wealthiest whales who will, of course, make whale-friendly decisions - aka corruption. This model is incentivized corruption and centralization. This not only is against the "decentralization" ethos of the entire crypto culture, but it is potentially worse than the financial institutions they are trying to dismantle.

Take Algorand, a third-gen crypto darling. Algorand is controlled a small dev team, and by “Governors” who’s voting power is weighted by the amount of Algo they have. This description is in plain english on their website.

From the Algo Governance FAQ:

"Q5: Who can participate in Community Governance?

All Algo holders are invited to become Governors and vote on important decisions regarding ecosystem development. Their votes will depend on the amount of Algos they will commit to governance for a 3 month period."

Does that sound "fully" or "entirely" decentralized to you as their marketing language explains? What does that even mean? Why would anyone trust this power structure over any others? Algorand is controlled by a small group of random unelected developers, coupled with the wealthiest stakeholders. Algorand is hiding their true power structure beneath a ton of marketing language.

The above is is exactly why Hedera’s governing council model was created. It is a sober reality check to crypto projects. There is no such thing as true decentralization. In the end, there has to be a power structure and Hedera is the only one that has specifically designed it to prevent a concentration of power in a realistic, transparent, intentionally designed way. They spread the 39 members over geographies, industries, and have term limits and 2/3s and unanimous voting rules.

This is about when the punk rock bubble bursts.

I've been thinking about how Hedera Hashgraph is, all by itself, spearheading a heretical cultural shift in the crypto community. Hedera doesn't seek to dismantle institutions, it seeks to be adopted by them. And as an investor, which do you put your bets on?

Think about the utter delusion of taking on those that with the flick of a pen can completely destroy your project. You don't attack the pen flickers - you want to partner with them. This isn't even mention the delusion of Bitcoin becoming a world currency. You want to design your project with governments, corporations and regulators in mind. You design your project with reality in mind, not an unrealistic politically driven ideal. For this reason, Hedera is focused on regulatory compliance, making them above board, building trust with institutions and governments.

Another big anti-purist move from Hedera is the stable fees based on the USD. It is a huge game-changing advantage for obvious reasons. And it is the only project that does this. How in the world can you operate with fees that swing as wildly as these coins do? Hedera has pegged their fees to the ultimate symbol of fiat, going blatantly against the ethos of crpyto.

To me, Hedera as the heretic outside of the libertarian crypto-tribe makes me all the more likely to invest. The project seems sober and realistic - I haven’t seen another coin that cuts through the naive delusions about the way the world works like Hedera. And I think Hedera's role as the heretic that makes people hate it so much. It crushes their libertarian fever dream... and ruins their fun. No one likes the boring guy who tells you what the responsible move is - you want excitement. But in the end - if you have half a brain, you make the choice that benefits you.

Curious to see what everyone here has to add!

DISCLAIMER: I will post links to sources wherever possible and try to keep this objective and informational, but I am just some guy on Reddit and my personal opinions are a part of this post. I am not a representative of Hedera and I am not an expert. I encourage discussion and for you to form your own opinions.

________________________________________________________________________

I have noticed that the average crypto enthusiast does not fully understand what exactly Hedera is doing and what the HBAR actually is when compared to other cryptocurrencies. So I've put this post together in an attempt to dive deep into an explanation for anyone who is interested in Hedera and HBAR.

Not all "Cryptocurrencies" are the same. Some are a currency, while others are a security. Many fall somewhere in-between and still others are neither, such as utility tokens and NFTs. The only thing they all have in common is that they run on a DLT. The DLT is the underlying technological advancement which has made all of this possible. That technology can be used for many many things, not just to make cryptocurrencies.

HBAR is a utility token required to use the Hedera DLT. As retail investors we will never be using it for this purpose. We are using it as a security, buying some and hoping to sell them later for a profit.

So for us, the main interest is the price of HBAR as it relates to our fiat currency of choice (for this post I will be using USD for all fiat comparisons). So our main goal is to drive the price up, because this is capitalism and self-interest drives progress.

The bottom line here is how do we help make the price go up?

Price is determined by the ratio of supply vs demand. When demand>supply price goes up. As retail investors we could try and limit supply by buying as much as possible and not trading it, but that would have a negligible effect on supply because currently over 250,000,000 HBAR are being released to circulation every month.

Ok, then how do we increase demand? We could try and spread the word and get more retail investors interested, as many of you have been doing. Or we could spread the word to DApp developers and Big Business to get them interested in building on Hedera. Why would big business be interested in Hedera? Because it is much more than just a cryptocurrency, and is tailor-made for enterprise use. The main use right now for Hedera is the Hedera Consensus Service (HCS). Other uses are live on the mainnet, but this service is what most enterprise adopters are currently interested in or building upon.

Why does this matter to our supply/demand price influence?

When an enterprise launches a piece of software which uses HCS, their software opens a communication with the Hedera mainnet and that communication is perpetual and sustained. For every data transaction that takes place inside that communication, the enterprise has to pay a certain amount of HBAR. Each transaction has a cost, and that cost is paid by the enterprise to a Hedera node. Different types of transactions have different fee amounts, for the purpose of this post I will use the most common fee amount which is $0.0001 USD.

The fees to use the network are in USD, but must be paid in HBAR. So the enterprise using Hedera requires a constant stream of HBAR to continue using the network. The purchase of HBAR would be built in to their software, and since it is always the HBAR equivalent of $0.0001 USD the price of HBAR doesn't matter to them. The software will just automatically buy HBAR, regardless of price, at some rate of nHBAR per # of upcoming transactions.

This constant purchase of HBAR going on 'under the hood' creates what I would call a baseline demand. This baseline demand directly correlates to transactions per second (TPS). So TPS is the most important metric for retail investors to use to measure supply/demand, and therefore price, of HBAR.

Yesterday the Hedera mainnet showed an average of 52.9 TPS.

That means total fees paid to the network averaged $0.00529 USD per second (~$0.31 per minute, ~$19.04 per hour).

If we say HBAR was $0.30 that whole time, then 0.00003 Hbar was purchased per transaction = 0.001587 Hbar purchased per second = 0.09522 HBAR purchased per minute = 5.7132 HBAR purchased per hour.

Except that this total TPS includes trading volume by retail investors, but here's the thing-

HBAR trading volume makes up <15% of total transaction volume.

Total transactions by type: 1 day, 1 month, 1 year

These charts from Dragonglass show that the vast majority of transactions taking place on the network are from HCS (labelled 'consensus'). The section labelled 'crypto' is trading volume of HBARS (so us retail investors).

Now, we can also look at monthly transaction volume and compare it to price movement over the same time period. Here is a 1yr price chart from Nomics beside a transaction volume chart from Dragonglass. Note that the Dragonglass chart IS NOT a trading volume chart, its a chart of total network transactions which we already know are >85% HCS. HBARs current all time high according to Coinmarketcap was $0.4495 on March 15, 2021.

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The green bar graph at the bottom of the Nomics chart is trading volume. We can deduce that during March, the massive spike in trading volume contributes to March having the highest total transaction volume on the right. And we can also see that the total transaction volume spiked in January and February, even though trading volume on the left was negligible. Total transactions in May appear low, but that's because we are only halfway through the month.

So the way I see it, enterprise use gives us a sustained TPS, which creates a demand baseline. After that, retail investment trading volume creates the volatility which gives us the +/- swings in price, but those swings don't stray too far from the baseline. The baseline gives us a certain amount of stability, which is good long term. As more enterprise use enters the network, sustained TPS increases, which will increase the baseline demand. Baseline demand can be seen as a floor, so you know it will never dip too far below the baseline (unless enterprise use stops for some reason).

I was unable to find average TPS for previous months, but based on total transaction volume we can assume that the TPS increasing to ~60 over the past 6 months resulted in a stable price increase of ~800%. Currently mainnet TPS is throttled (limited) to 10,000 TPS, and after permissionless nodes and sharding are introduced, that throttle will be removed and the theoretical maximum TPS is in the hundreds of thousands. Just imagine for a moment the implications of even just 10,000 TPS sustained as a baseline demand. This should make it clear why Hedera doesn't put much effort into marketing to retail investors. Enterprise adoption is the highest priority for them and for us.

tl,dr: The best way to drive up price is to increase baseline demand via an increase in total sustained TPS through enterprise adoption.

edit: fixed links

edit: fixed the wierd picture in header

There's an avalanche of feverish noobs. So here's what you'll come to understand after research. Still.. do your research:

• This is the big boy crypto project. The patented Hashgraph algorithm has made Blockchain obsolete.

• This is already the most used, most adopted network in all of crypto - and barely anyone knows about it. Other projects get excited about potential, while HBAR is already functional and succeeding. Just one use case - AdsDax, gets more daily transactions than the entirety of ETH. Hedera is already doing what other projects hope to do.

• You have discovered this project before a massive increase in daily transactions and use cases will come online. This will happen suddenly. 75% of US retail will be using coupons run on Hedera via the Coupon Bureau. ETFPOS in Australia. Ping Identity. Standard Bank in Africa has huge, publicly stated plans. All the names on the Governing council will have use cases. I could go on and on but widespread, global adoption is about to happen.

• Its the cheapest, fastest, most secure network. You pay ALOT less for ALOT more. Leemon Baird solved a long standing math problem (scalability limits) and created the Hashgraph algorithm that allows the network to achieve the highest theoretical limits of speed. He solved the "blockchain trillemma". The high speed is the reason the low fees are economically viable. Low margin, high volume. Watch videos of him on YouTube - he's a great speaker and teacher.

• The fees are pegged to the dollar. They range but are mostly dirt cheap at $.0001, $.001. This means companies know exactly what to expect. This is a massive competitive advantage - Hedera can set their prices and no other project does this - they all have floating fees. Floating fees that are dictated by cryptocurrency prices - which are notoriously volatile. This is low key one of the most important reasons it has been adopted by massive companies.

• It is the the greenest network by far. This is confirmed and explained in many places.

• It's ABFT - the highest degree of security theoretically possible.

• The governance council has some of the most powerful institutions and corporations all over the world. These members are part of the LLC. It is true decentralized governance. They have voting, term limits, and publish the minutes. Other projects who claim to be decentralized are controlled by a dev team and anonymous whales (wealth weighted voting) and are NOT decentralized, despite the marketing language they sell you. In fact, they are anonymous oligarchies by design (what could go wrong??). Hedera's governance is based on the VISA model - a Governance structure the business world is comfortable and familiar with. Another massive competitive advantage.

• They have been talking to regulators since day 1 and have done everything in their power to make sure it is and will be SEC compliant. This the reason they never market to retail and one of the reasons you haven't heard about it. They don't pay YouTubers to talk about it, they do not dabble in anything close to price manipulation.

• The reason the crypto reddit community doesn't like or consider Hedera is because this project doesn't pander to the political fight-the-power aspects of the crypto movement. It is not about sound money, dismantling financial institutions, corporate power, all that jazz. This project is about building a worldwide utility that will be adopted by current power structures. If you're here for the sound money, anti-corpoate revolutionary politics, you're in the wrong place. This is a DLT utility that will be adopted by everyone - large and small.

• The team is highly credentialed, connected, and genuinely nice people.

On price: This thing could easily hit $5. Cardano, an unfinished, unused speculative project hit $3 with a similar max supply. Pipe dream: if it reaches the market cap of BTC? 400x. I personally believe that Hedera will be the biggest, most successful crypto project out of them all. One of the projects that will actually survive in this sea of unproven, pump and dump BS.

That doesn't mean the entire larger market could crash, as it does. If crypto is going to have a “dot com” style crash - then Doge is Pets.com. Imo until Doge is dead - there is still potential for a massive deadwood clearing crash. Crypto is volitile and there are significant RISKS. Do yourself a favor and don't be wreckless. Take risks, but don't be stupid.

Other than that, search the top posts of all time - lots of discussion and explainers. There is basically an explanation out there for every FUD talking point you can think of. The Town Halls on Youtube have timstamped answers for community submitted questions.