What's up, guys? We're back today with another video about HEX, PulseChain, and PulseX ecosystem. So, the question of the day is: Is HEX a scam?
In this video, we're going to share our thoughts on HEX. And the explanations we are going to give as well as the examples come from Richard Heart himself. Watch this video till the end so you don't miss anything.
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Cryptocurrency is one of the only places in the world where you can make millions of percentage returns. For example, we've had Bitcoin make over 6.5 million X since it was launched.
But Bitcoin, as amazing as it is, has flaws, it has had mistaken, it has bugs, it is bad for the environment, and it doesn't make technical progress very quickly. The best thing it has going for it is that there's a lot of liquidity. So, if you're a billionaire and you need to buy for a billion dollars, the price moves the least against you. But in every other aspect, except that, there are superior technologies.
So why not just solve some of the problems? And a lot of people have tried to do that before, and they got kicked out of the Bitcoin community because they didn't have a very progressive mindset.
Bitcoin has set out to be a peer-to-peer digital currency. That's the title of the white paper. Yet no one is using it that way. Fewer retailers are accepting it today than three years ago. There are fewer transactions on the chain than there were three years ago. The throughput is about the same as it was three years ago. That's not how the technology is supposed to work. So if you want anonymity or smart contracts, stablecoins, or time deposits, which is what HEX is, you can't do any of that with Bitcoin.
It's an old technology that will probably be outdated by other things.
Now, what does HEX do? HEX is essentially Bitcoin, but instead of proof of work, which rewards miners with Bitcoins for destroying the environment, HEX is instead Proof of Stake.
Now, fortunately, about two-thirds of the Bitcoin mining is done using renewable energy, but one-third does not, and that one-third is a lot. So, what if you just replaced the proof of work where you pay miners to lower the price and then take that money and go destroy the environment with it? What if you took away all those negative externalities and instead paid inflation to the people who drove the price up?
This is what banks do. Banks use proof of time when they give you a time deposit or a certificate of deposit. The time value of money is very well understood in the traditional markets, and absolutely no cryptocurrency has been designed to deal with it, except HEX. The thing HEX most resembles is Bitcoin. Bitcoin miners earn interest. They buy equipment and electricity. They mint their own rewards out of thin air.
The amount of your reward is based on how many people are competing with you for that reward. And the person who rewards you is yourself. For example, if you draw yourself a nice painting, you now have a nice painting, if you clean your room, you now have a clean room. If you mine bitcoins, now you have bitcoins. You can sell them; you can keep them. And it's the same with HEX. If you stake your HEX for a while, you can finish your staking and you can get a reward in extra HEX. If a lot of people are staking, the reward decreases in terms of HEX. But the value of the token will increase.
If few people stake, the reward increases in HEX terms. Now, the most important part is the value of those HEX. If you bought HEX on January 5th of last year and held it until a few months ago, you would have earned 386,000%, not including interest. With interest, you would have earned between 30% and 100% on top of that. That's incredible.
YES, it's impossible, and that's the strength of cryptocurrencies. You might think it's a scam. Nothing can have such good returns. And then you look at Bitcoin and it's gone up 6.5 million X, in eleven years. You look at Ethereum and it's up 14,000 X in five years. So being up 3860X in a year and a half is actually very similar to what Bitcoin and Ethereum have done since their launch.
So that's the norm for crypto investing.
As Richard Heart himself explained in a video, when an exchange makes billions of dollars, as these margin exchanges do, where do you think this money comes from? Actually, it's coming from the destruction of its users. They wear these people down. They liquidate them, and they lose all their savings. And they don't just lose their money, they lose their health, they lose their time, they lose their relationships.
This is what most crypto-currencies are. There's a middleman, which the crypto-currency was created to get rid of, right? Margin trading, exchanges. There they are, the middleman.
Everything happens on the trader side. There's a guy looking at a screen. And another guy looking at his on the other side. They are trying to steal each other's money. One of them thinks the price is going up. And the other guy thinks the price is going down.
And how does the exchange benefit? Because they don't care if the price goes up or down. As long as these two guys get liquidated over and over again, they'll end up with nothing. And you end up with a world of very rich exchanges and very poor users because they did the opposite of what crypto was invented for and gave their money to a middleman. Instead of buying and holding your money to outperform Bitcoin's 6.5 million X returns, or outperform HEX's 380,000% returns in a year and a half. These guys got wrecked by being greedy. They should have delayed the gratification. That way, they could have benefited from all that performance. And Richard Heart built the thing that delayed gratification. And that's HEX.
Again, those who can delay gratification, and those who invest will benefit more. All personal development is about choosing something better in the long run than in the short run. Imagine how many bitcoin millionaires there would be if they didn't try to trade it if they didn't try to time the market if they didn't try all the stupid things they try and just buy it and hold it. The people who forgot they had a flash drive full of bitcoins are the ones who made the most money because they kept their hands off their earnings. You're probably thinking that it's hard to sit through a 6.5 million X return, right? Well, the average interest rate in HEX is 37%. So, while you're waiting for that return, you'll already be enjoying a guaranteed 37%. Here, the main component is time. So, the average stake is 5.8 years.
And so, it rewards you. It's a meritocracy. It rewards you based on what you deserve to be rewarded. Only 10% of the coins are put into play. That's why the return is so high. If more coins are put into play, then their yield and HEX terms will be lower. But as a result, the price is likely to be higher. Because the supply has been reduced further. It's a self-balancing system.
Now, do you think HEX is a Scam? Share your thoughts with us in the comments section below.
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