bitShares 'HERO' Coin Tutorial
What is the Bitshares 'HERO' asset and what makes it special?
According to Bitshares the Hero Coin (originally called the Dreamcoin) can be described as a formula pegged asset (FPA) and trades as “HERO.”
HERO is an (FPA) mathematically defined asset designed to appreciate annually by five percent (5%). This means an investment of $1000 should net you by definition a return of $1050 after one year. With the magic of compound interest, this investment could soon add up very quickly!
The HERO is a unit of digital currency whose value is mathematically pegged to the US dollar plus 5% APR since the Creature from Jekyll Islandbegan printing it in 1913. Today the value of the dollar is worth less than 2 cents in 1913 dollars. The HERO is worth over $150 in 2017.
Can you tell me more?
1.) To buy HEROs you must first set up your account with bitShares.org
2.) Next you must fund your account with bitShares either by transfer or by purchasing them on the exchange.
3.) After that you must find the HERO:BTS trading pair.
4.) Finally purchase the desired quantity of HERO that you’d like.
So how does this magical HERO system work?
Using the Bitshares exchange you must use your Bitshares (BTS) tokens as collateral for a 200% loan. This creates the asset known as HERO. You can then use Hero to buy even more Bitshares if you’d like. Be warned however that upon the creation of HERO you risk the possibility your collateral will be at risk so make sure to research this process very well before investing.
Here is a link to a great tutorial I found on Sovereign Hero : http://www.sovereignhero.com/buy-sell-short-shares/
Final Thoughts
I have not actually gone through the process of buying HERO at the moment but the whole system sounds ground-breaking and revolutionary.
If you are reading this and have direct experience trading in HERO can you tell us about your experience below?
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Thanks for reading.
Sources:
@stan ‘The Hero from BitShares Island... +5%’
@biophil 'Who will pay the "interest" on HERO?'
https://steemit.com/bitshares/@biophil/who-will-pay-the-interest-on-hero
HERO is a savings account that pays 5% interest... minus the bank. :)
You might add that you risk your collateral by creating your hero. If you on the other hand buy it using usd, it is probably as safe.
I will add that. Thanks for the contribution!
I wonder if this might become a useful tool for the fundraising crowd. If the 5% a year is guaranteed, that might could cover admin costs of fundraising so more of the money could actually go to good causes.
What is HERO pegged to though? How can the guarantee a 5% return year after year due to compounded interest? Seems unrealistic to me
As far as I know its mathemaically pegged to the dollar through a formula and its backed by collateral which is of more value than the created coins. Is no less real as fiat as far as I understand it but I'd like clarification on this issue.
Interesting. Great job on your post.
Thanks!