RE: Shall We Play a Game?
It depends on how you look at it. As a bts holder, the price fluctuates wildly. Up to 100% the past days. But when you switch to the usd point of view, it is fairly stable. Hero is by design stable to reflect 1913(?) value of usd with a 5% yearly increase.
If you sell lower than you purchase, you allways loose. There is no difference there. But the way the hero is created, adds another risk. The hero is created by locking up bts. And if the collateral gets less value than you agreed, you will loose all of it. It is a nifty system that will make the supply of bts shrink.
I don't recommend doing this because of the risk of losing everything. It is another matter if you are a usd holder and use it to buy hero. At least on paper it looks like a much better deal.
My personal point of view is that bts will gain the most and holding it at least for a few months will probably be very good. Especially if this challenge is successful. But taking part in it? No. It is a high risk game. And I value my sleep much more than risking my bts.
VVow thank you for your time explaining me this. I guess I will just stay out of this mess and see if it might succeed and increase the bitshares price. If it is to succeed i will invest a bit of my money into buying bitshares.
whats your opinion on this challenge relating to bitshares? is it benefitial for bitshare holders?
Anyways I followed you :)
To put it this way: it will certainly not hurt bts. Quite to the contrary is my guess.
I don't blame you for not understanding, it was totally Greek to me as well when I first heard about it. And I have openly criticized Stan for not explaining it properly. He just emphasize it is the best invention since blabla.., bollocks! It is a highly sophisticated financial tool. That much is correct. But it is mostly for traders that need to hedge their position.
The rest of us can just watch the supply of bts diminish week by week. Which means yo have to pay more to get in. So I wish Stan success with the challenge. It will benefit holders.
And keep in mind that bitshares is about to put in place a system for dividend. It might be very good to just keep them.
Okay. Thank you for time! You seem very smart and I like your mindset. Lets keep in touch :)