Posted 1 year ago | by Ben Armstrong
A Sneak Peek into Richard Heart’s Cryptocurrency and Financial Tool HEX
Richard Heart’s cryptocurrency and financial tool is finally here. The much-anticipated launch of HEX happened eariler this week, 2nd December 2019 on the Ethereum network via a Bitcoin UTXO snapshot. There has been a lot of criticism and controversy surrounding the crypto but only time will tell who is right.
“HEX will be the first high-interest Blockchain certificate of deposit (CD) that will let users stake their tokens in return for interest,” remarked Heart following the launch.
He went on to add, “Users will enjoy interest rate payments ranging from 3.69% if 99% of total supply is staked. The payments will be paid out in HEX tokens and the monetary value of such a payout will entirely depend on the market value of HEX at the time of maturity.”
According to Richard, the tool is already the first blockchain CD that attacks the largest market in the banking environment other than saving accounts. He also argues that it is a crypto version of the traditional fixed deposit.
“Banks use depositors’ money as a sort of collateral. It is just an excuse for them to borrow money from the government at low rates,” he said in his remarks.
Critics have branded Heart’s tool as a Ponzi-like structure raising privacy and security concerns regarding the tool. “Bitcoin Hex (as it was known earlier) resembles a Ponzi scheme. It is sort of a fool’s gold promising to make everybody richer at the expense of a simple sign-up process,” claimed Vlad Costea, a writer at Bitcoin Magazine.
During the launch phase, any Bitcoin holder can claim 10,000 HEX for each Bitcoin stored in a wallet address. Following the wave of criticism directed at HEX, it is hard to predict whether the tool will be globally accepted and whether the tokens will have any substantial value.
It is ironic that the term 'ponzi scheme' is applied to so many alternative digital assets. While HEX may our may not be a good store of value, the established banking system leaves a lot to be desired. With the growth of negative interest rates, there is bound to be a search for assets that actually create a return.
People didn't have much of a problem with ultra low interest rates, but now savers are facing negative rates. That means that the bank actually charges you for a deposit, which is starting to happen in some European nations.
The search for yield will no doubt foster some crooked ideas, and the central banks, not digital innovators are at fault.
There is no magic in the system, just central bank policy gone mad. HEX won't be the last project that offers a return to yield-starved investors, and it may look like the way of the future if public money stays on its current course.