RE: The Hero from BitShares Island... +5%

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The Hero from BitShares Island... +5%

in bitshares •  7 years ago  (edited)

You need to look at it in the context of the adoption generated by the Billion Hero Challenge. All investments have risks. Have we sufficiently mitigated the risks so that the investment is risk free? Of course not. Does it compare favorably to most other investments? How about to holding the US dollar?

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Thanks for the reply Stan. I think I would be more receptive to the idea if it was presented as a BTS derivative that increases risk by using leverage. BTS is a highly volatile instrument both to the up and downsides, so having a leveraged derivative of a volatile underlying seems like a very aggressive approach to take with the whole Bitshares system. I don't think it is wise to build a model that requires perpetual growth to stay solvent. Inevitably there will be periods, especially in the crypto space, that have severe draw-downs. It seems to me the Hero would collapse very quickly under even a moderate sustained pullback.