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What makes HEX special? - Episode 130 - by cryptohunt.it
What makes HEX special?
Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english.
Today, let’s take a closer look at HEX, a crypto token that is specially designed to perform lending and borrowing.
The makers of HEX took a look at the traditional financial markets and realized that there is a very popular form of borrowing and lending, called a certificate of deposit. In short also called CD, its idea is really simple: A bank would pay you a higher interest rate on cash that you deposit for a fixed amount of time. That’s because it helps the banks plan ahead better, something worth a premium to them. They take the money out of your account, and you get the CD. It simply says: The bank now owes me money and I’ll get it back at a set point.
HEX does all of that, but without banks in the middle. You can put money into Hex by buying it, and when you lock it up for a period of time, it starts paying additional Hex in interest.
Interestingly, that is the only use case it has: To buy and hold, like digital gold. That is why many critics say Hex is essentially a big ponzi scheme - it can only continue to grow in value if more people buy in. Proponents, on the other hand, liken it more to Bitcoin as an investment vehicle, but with built in interest.
And that’s it on Hex – what do you think? 30 billion dollars invested well, or just a big ponzi scheme?
Disclaimer: This podcast references our opinion and is for information purposes only. It is not intended to be investment advice. Do your own research and seek a duly licensed professional for investment advice.
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By cryptohunt
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What makes HEX special?
Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english.
Today, let’s take a closer look at HEX, a crypto token that is specially designed to perform lending and borrowing.
The makers of HEX took a look at the traditional financial markets and realized that there is a very popular form of borrowing and lending, called a certificate of deposit. In short also called CD, its idea is really simple: A bank would pay you a higher interest rate on cash that you deposit for a fixed amount of time. That’s because it helps the banks plan ahead better, something worth a premium to them. They take the money out of your account, and you get the CD. It simply says: The bank now owes me money and I’ll get it back at a set point.
HEX does all of that, but without banks in the middle. You can put money into Hex by buying it, and when you lock it up for a period of time, it starts paying additional Hex in interest.
Interestingly, that is the only use case it has: To buy and hold, like digital gold. That is why many critics say Hex is essentially a big ponzi scheme - it can only continue to grow in value if more people buy in. Proponents, on the other hand, liken it more to Bitcoin as an investment vehicle, but with built in interest.
And that’s it on Hex – what do you think? 30 billion dollars invested well, or just a big ponzi scheme?
Disclaimer: This podcast references our opinion and is for information purposes only. It is not intended to be investment advice. Do your own research and seek a duly licensed professional for investment advice.