So after a month of messing with HERO I've come to the following conclusions:
The HERO contest lives or dies by convincing a lot of people to use HERO as a 5% savings account
This requires a lot of non-crypto people to transfer fiat to HERO, which is going to require a simple and easy on-ramp. I don't see anything in the HERO contest materials about the on-ramp for non-crypto people to move fiat into HERO easily and quickly. This literally has to be like an Interac e-transfer that automatically buys HERO - users don't even see the DEX.
Non-crypto people are going to need an iOS and Android app to use as a wallet and to check the status of their savings. This wallet is also going to need to enable them to convert to/from fiat seamlessly. This is probably the most critical part of the contest and will determine whether the HERO sees widespread adoption or not. A clean, simple app is key. All people are going to want to see is their balance in their native currency increasing by 5% every month. They should not even see HERO. Just $XXXX and the number gets bigger every day. Basically: transfer money to our app and it will grow at 5% until you transfer it back out.
There needs to be millions of HERO tokens available in a very liquid market for this to work. This requires hundreds of millions of BTS to be locked up as collateral. I personally created more than 500 HERO and have now settled every one of them due to volatility and absolutely awful margin calls. I lost over $20,000 USD of value in a month trying to bring HERO to market - BTS went from .30 to .20 and anyone trying to get HERO off the ground got killed. There is a lot of risk in creating HERO that has been glossed over in the marketing materials, and if whales are going to create millions of HERO - and put hundreds of millions of BTS at risk as collateral - there is going to have to be a very convincing plan for steadily increasing the price of BTS. I personally feel a few whales have dumped the BTS market to squeeze HERO collateral and create an entry point for themselves. Whales could easily roll the market up and down and make a fortune for themselves shorting and buying back HERO at the expense of the average Joe. This is a huge problem. There needs to be steady upward pressure on BTS in order to convince a large part of the market to short HERO.
More as it develops!
I'm thinking this all sounds great but didn't bitcoin get its value from:
When bitcoin was regarded as stable enough it was picked up by the Chinese and now it is regarded as a digital gold. I mean gold is a hedge against inflation right?
First I thought BTS are shares so stock! Now @stan you talked about it being a currency, ok sounds nice. But (look another one!) if you look at Steemit, @aggroed posted a distribution of the (whales) wealth on Steemit regarding HF19 a while ago.
Outcome: not the 1% no the 0,1% of whales owned the most wealth.
Since Steemit is based on Bitshares but made so to kindle long term growth, how can you expect the same thing doesn't happen?
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can't agree more!
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Logical reasoning. BTS is showing a downward trend since 12/6. Short term correction?
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This is an absolutely stunning idea! I really think the hero coin will be a huge success. I also agree that the method for mass adoption needs to be incredibly simple. This is revolutionary if bitshares can pull it off!
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