What's up, everyone? In today's video, we are going to compare HEX to Bitcoin. We'll look at how both work, which one offers the most rewards, and which one should be considered as a long-term investment.
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Bitcoin changed the world by introducing a decentralized store of value. But its creation and adoption have created problems and complexities that HEX solves.
In many ways, BTC and HEX are analogous. Bitcoin and HEX are peer-to-peer networks that store and transmit value. HEX is like Bitcoin with a Proof of Work change. In Bitcoin, miners buy mining hardware and electricity from companies. In HEX, miners buy HEX from other HEX holders, then use the time to mine. HEX is Proof of Wait instead of Proof of Work.
Let's say you want to make more Bitcoin on your Bitcoin. What are your options? You could lend your coins out and take the risk they're not returned, or you could try selling your coins for mining hardware and hope to get more coins back later. Many people have lost a lot of money trying either. HEX solves this.
HEX is like a notepad showing everyones' HEX balance, but requiring their passwords to spend. It is the first high-yield Blockchain Certificate of Deposit (CD). HEX virtually lends value from Stakers to non-Stakers, as staking reduces supply, causing positive price pressure on unstaked coins. You mint shares by time-locking (or Staking") HEX, with bonuses of 20% per year, up to 3x for longer and 1.1x for larger. The HEX needed to create a share goes up every day, simulating compounding interest. Shareholders profit from the 3.69% annual inflation and early & late end stake penalties.
HEX is a hybrid Proof of Work (POW) and Proof of Stake (POS) system. Stakers are paid inflation in HEX while ETH miners receive small amounts of ETH to perform your HEX transaction. HEX conforms to the ERC20 standard to maximize interoperability and security. HEX is easily extensible because smart contracts can be built on top of it or reference it. HEX works with distributed exchanges like Uniswap and atomic swaps easily. Every 1 HEX consists of 100,000,000 Hearts.
Now, with Bitcoin, miners mint new BTC by their % of the total hash rate. You get more hash rate by buying more mining hardware. Each Bitcoin mining machine earns less and less BTC over time as difficulty rises. Profits must be reinvested in newer hardware, as older hardware becomes unprofitable.
While with HEX, stakers mint new HEX by their % of the total shares. You get more shares by Staking longer. You don't need any special hardware to Stake, your phone is sufficient.
In Bitcoin, the total hash rate is the value invested in the protocol, it protects against 51%-attacks. HEX does not need protection against 51%-attack because Ethereum already does that for HEX.
HEX is simply Bitcoin with a proof of stake. So, Bitcoin pays you to destroy the environment. It only rewards you for mining, which is intentionally very energy intensive. HEX has just replaced paying people to destroy the environment. Another thing people think is that Bitcoin is deflationary. Actually, it isn't. Since it went from zero to almost 19 million coins. Back in 2009, there were no coins and now there are 19 million.
On the other hand, HEX rewards people for storing energy in the system, which puts positive pressure on the price. This is not the case with Bitcoin.
With Bitcoin, miners are paid to drive the price down to enrich mining equipment companies and energy companies. And that's how the security model works. They have no choice.
Bitcoin at the time, the inflation rate was 3.89%. It was much higher because it had already been split in half twice. With HEX, on the other hand, we start at 3.69%, and you don't get paid until the end of your stake. And since the average participation lasts six and a half years, this inflation is extremely delayed in the future, extremely low. And since there are no negative externalities, you see people starting to invest again. The number of people who have $100 million and are selling it is very high. People are treating it as real storage value. That's where they store their energy. At least, that's what it looks like. So, it's just Bitcoin with a proof-of-work change. Instead of inflating to destroy the environment, HEX inflates to protect the price by rewarding people who provide late gratification.
With Bitcoin, profits are razor thin. The increasing difficulty ensures than all the miners on earth have to split a block reward of only 6.25 BTC between them. Moreover, this recompense is divided by two every 4 years because of the halving.
Most of that is used to pay for electricity & mining hardware. It's a highly inefficient system. You can even lose because your mining profits might not be enough to pay for electricity & hardware. A mining operation might take years to be profitable.
However, HEX Stakes average 38% APY. You don't need to buy any special hardware.
Now with Bitcoin, you can pay a middle man to invest your money into their mining operation. In case that company is not a scam & profitable you can get some razor-thin returns on your investment. In 99% of cases, it would be more profitable to just buy BTC. Additionally, new miners have an advantage over old miners, because they are more energy-efficient. Miners get paid more when other miners turn their machines off.
In HEX, there are no middlemen. You can easily manage Stakes yourself. There is no risk of some companies going bankrupt.
And unlike Bitcoin, old Stakers have an advantage over new ones, because the share price measured in HEX only rises.
HEX Stakers also get a bonus if others close their Stakes early or late. Bitcoin miners consumed as much electricity as a medium-sized country. Even though a part of that is renewable energy, a lot isn't. Miners harm the environment to sell down the Bitcoin price.
Staking HEX is easy. It doesn't require any know-how, facilities, electricity bills, hardware... or paying one of a few companies in the hope they send you working hardware on time, that it clears customs, works in your facility and your breakers can take the load.
There is no sell pressure on HEX's price to pay facilities, hardware, maintenance, electricity, decommissioning of old hardware, and buying a new one. There are no middlemen. HEX is not a Ponzi scheme. Only you interact with the smart contract. No one owes anybody anything. Compounding is simulated by a share price that is measured in HEX and only rises, making each T-Share more expensive in HEX over time. It is more computationally efficient to reduce new Stakes' shares by writing a single new share price than it would be to write thousands of compounded shares' profit to exist stakers. This is similar to how Bitcoin updates its difficulty every 14 days.
Imagine watching your Staked HEX earn more HEX, while the share price goes up and the USD/BTC/ETH price of HEX goes up too. The gains multiply by each other.
To earn interest on your Bitcoin you have to lend them out to a third party and pray that they are giving them back to you. The yield for doing so is very low compared to HEX, usually around 5-10% APY. Also, you don't get a bonus for "staking" longer.
These centralized parties are security holes that are often hacked, destroy privacy, or introduce fees if you want to get your funds out. Billions of dollars in coins sent to bad exchanges and bad lenders have been stolen.
HEX replaces these third parties with a trustless peer-to-peer system: to earn a yield on your HEX you just Stake them. No need for a third party, no middlemen, and no counterparty risk. You do all the work. Nobody owes you anything, you only ever owe your future self.
HEX Stakes average 38% APY depending on how long they Stake. Not a single Hexican has ever lost any HEX to something like a bankrupt lending platform because they don't have to give their HEX to somebody else to earn rewards on them! That's it!
Now, do you think HEX is better than Bitcoin? Share your thoughts with us in the comments section below.
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