Current Affairs Stocks and shares and stuff

[Mrk]

so the interest from staking is created out of thin air by an algorithm?
You stake and hex is removed from supply at which point an algorithm creates more hex that is paid to you as interest?

Sounds like something you’d read in the prospectus of one of Bernie Madoff’s investment funds.

 

[DuuuncanHadaPigeon]

so the interest from staking is created out of thin air by an algorithm?
You stake and hex is removed from supply at which point an algorithm creates more hex that is paid to you as interest?

You stake X amount of HEX, that HEX is then burnt and removed from supply.

Some time in the future when you end your stake, when YOU interact with the smart contract, YOU mint your original HEX + interest HEX.

Governments print money out of thin air at some clip. HEX is capped at 3.69% a year and will likely never be that high. I think it is currently less than 1% inflation

 

[DuuuncanHadaPigeon]

Sounds like something you’d read in the prospectus of one of Bernie Madoff’s investment funds.

Sounds like you don't know what you are talking about, gvmts print money out of thin air for fun!

 

[mill]

You stake X amount of HEX, that HEX is then burnt and removed from supply.

Some time in the future when you end your stake, when YOU interact with the smart contract, YOU mint your original HEX + interest HEX.

Governments print money out of thin air at some clip. HEX is capped at 3.69% a year and will likely never be that high. I think it is currently less than 1% inflation

But this is the point, all that is happening is that supply is increasing over time. All that’s happening is money printing with short periods of supply shocks as people stake.

There’s no real value being created at all.

 

[Mrk]

Sounds like you don't know what you are talking about, gvmts print money out of thin air for fun!

It’s always nice to meet a fellow blue with a sense of humour.

 

[DuuuncanHadaPigeon]

But this is the point, all that is happening is that supply is increasing over time. All that’s happening is money printing with short periods of supply shocks as people stake.

There’s no real value being created at all.

I suppose there is no value in the CD markets then.

 

[mill]

I suppose there is no value in the CD markets then.

It’s not comparable. Because banks use the capital and loan it to other institutions who use it to create value in other things.

the money is just a mechanism to track that value.

so I could give the bank 100 quid on the promise they’ll give me another 2 quid after a year. They take that hundred quid and offer it to a company that makes chairs. That company buys would and other materials with the 100 quid and sells the chairs for 150. They pay back the 5 quid of interest and 100 loan, pay wages of 20 quid and make 25 quid profit. The bank take the 5 quid and pay back the 2 quid and make 3 quid profit.

So I provide capital on the basis that I’ll be paid for providing it and the companies that utilise my capital do so on the basis that they can create value elsewhere.

From what you’ve explained, hex doesn’t have any mechanism for value creation at all.

 

[toffee82]

Please explain how HEX is crap, I have asked you this before and you never replied...

Triple audited, no admin keys, actual use case, 600x in 450 odd days, trustless interest, the list goes on...

if HEX is crap I would love to know what shitcoins you claim are good (hint - I bet they are either promise coins or ghost chains)

Are they like Sean promises?

 

[DuuuncanHadaPigeon]

The mistake I think

It’s not comparable. Because banks use the capital and loan it to other institutions who use it to create value in other things.

the money is just a mechanism to track that value.

so I could give the bank 100 quid on the promise they’ll give me another 2 quid after a year. They take that hundred quid and offer it to a company that makes chairs. That company buys would and other materials with the 100 quid and sells the chairs for 150. They pay back the 5 quid of interest and 100 loan, pay wages of 20 quid and make 25 quid profit. The bank take the 5 quid and pay back the 2 quid and make 3 quid profit.

So I provide capital on the basis that I’ll be paid for providing it and the companies that utilise my capital do so on the basis that they can create value elsewhere.

From what you’ve explained, hex doesn’t have any mechanism for value creation at all.

The money you give a bank is a liability on their balance sheet not an asset. They use this money as collateral for gvmt funded helicopter money loans, not to fund local chair companies.

The value of HEX is trustless interest, it's as simple as that. The value in trustless interest is huge

 

[mill]

The mistake I think

The money you give a bank is a liability on their balance sheet not an asset. They use this money as collateral for gvmt funded helicopter money loans, not to fund local chair companies.

The value of HEX is trustless interest, it's as simple as that. The value in trustless interest is huge

You can call it what you want mate. It’s an algorithm increasing the monetary base. It may be decentralised and the jargon may be different but the mechanism is the same. Supply is gradually increasing through *time*. That’s the variable. And it’s depreciating the value of a single hex token. At the moment, the price increase is likely outpacing the inflation factor. But that won’t always be the case because there is nothing tangible backing it.

(And my loan might be a liability on the banks balance sheet, but they can use it to create an asset on the other side by providing a loan to others. We’ve nearly all got mortgages for instance).

 

[LinekersLegs]

 

[LinekersLegs]

 

[DuuuncanHadaPigeon]

You can call it what you want mate. It’s an algorithm increasing the monetary base. It may be decentralised and the jargon may be different but the mechanism is the same. Supply is gradually increasing through *time*. That’s the variable. And it’s depreciating the value of a single hex token. At the moment, the price increase is likely outpacing the inflation factor. But that won’t always be the case because there is nothing tangible backing it.

(And my loan might be a liability on the banks balance sheet, but they can use it to create an asset on the other side by providing a loan to others. We’ve nearly all got mortgages for instance).

The total supply of hex inflates through the smart contract, capped at 3.69%. Government inflation is not capped.

The supply of hex also deflates through staking, there is currently over a billion dollars staked.

if I end a stake today, i mint new hex, but if more hex is staked that day then the supply actually reduces.

Bitcoin inflates its supply and has done 6million x from a penny, ETH has an unlimited supply of tokens but has done 500,000x from a penny. HEX has a capped inflation rate of 3.69% which it will likely never hit, and has done 600x in about 450 days.

The US gvmt has printed obscene amounts of money over the past year (check the M2 money supply) and stock markets have never been higher.

As adoption of hex increases, it will only lead to one thing. Insane price performance. I suggest get in before the train leaves the station

 

[toffee82]

You stake X amount of HEX, that HEX is then burnt and removed from supply.

Some time in the future when you end your stake, when YOU interact with the smart contract, YOU mint your original HEX + interest HEX.

Governments print money out of thin air at some clip. HEX is capped at 3.69% a year and will likely never be that high. I think it is currently less than 1% inflation

What stake durations have you gone for?

Reading up on it all now. Contemplating a small dabble staking at 1, 5 and 10 years. I figure I can afford to lose less than I bet on footy over 10 years if that is what it came to.

It still feels early enough to take a plunge.

 

[DuuuncanHadaPigeon]

What stake durations have you gone for?

Reading up on it all now. Contemplating a small dabble staking at 1, 5 and 10 years. I figure I can afford to lose less than I bet on footy over 10 years if that is what it came to.

It still feels early enough to take a plunge.

I have around 65 stakes and my average stake length is 10.5 years. I have created a staking ladder - https://www.investopedia.com/terms/c/cd-ladder.asp

It is still very early, barely a year old.

Any questions let me know