Richard Heart – Colorful. Honest. Realist. Bitcoin OG. Thinker and Entrepreneur. Creator of Bitcoin Hex.
Heart might have invented the most important Ethereum Dapp that you might not know about. Welcome Bitcoin Hex. And if you hold Bitcoin it could be airdropping to your wallet in the next 4-5 weeks. Yay, free money in a bear market! From the website, it is the “first high-interest savings account on the blockchain.” Check out their website for more details here and to learn more about Richard Heart, the Bitcoin OG.
What is Bitcoin Hex?
Bitcoin Hex is not a fork of Bitcoin. It is an ERC20 token airdrop that will only be rewarded to those holding Bitcoin when the snapshot of the blockchain is taken. It is the first crypto-asset that combines incentives to HODL besides price appreciation. Heart has taken a real banking product that pays you a guaranteed interest rate where you stake your Bitcoin Hex to the Ethereum smart contract for a specified date. The longer you stake the more interest you will earn. The project takes one of the most popular banking products, the Time Deposit, and is making it a reality on the blockchain by rewarding those who HODL and getting rid of the costly middlemen in traditional finance that smart contract technology can replace.
Unique attributes of Bitcoin Hex:
First coin to reward HODLers and not miners
1 BTC = 10,000 BHX (Bitcoin Hex)
20% Early bird bonus
Interest payouts vary and depend on % of total stakers. View website for theoretical ROI payouts.
- Tips and Tricks:
BTC should be stored in a Bitcoin wallet where you control the private keys
Recommended to download MetaMask Wallet (Chrome or Brave browser extension)
Remember, BHX is ERC20 token so this is where your BHX will be deposited during the claim process. Please check back on the website for video instruction on how to claim air drops if you have never done so. It’s extremely straight forward, but watch for instruction videos in the near future at Bitcoin Hex website: http://bitcoinhex.com
More about Bitcoin Hex:
Heart is a Bitcoin OG and made his fortune mining and investing in Bitcoin in the very early days. Why did he create Bitcoin Hex and go through the challenging task of creating what will probably be the largest Ethereum Dapp thus far? Watching his Youtube channel you quickly find out. On one hand, Heart appreciates the censorship-resistant qualities of Bitcoin, but on the other, he has adamantly pushed back on the lack of development and progress. He thought that there might be a way to create a cryptocurrency that takes all the best attributes of Bitcoin (the decentralization, censorship-resistant qualities and game theory) and reward those that HODL. When you HODL Bitcoin you can only make money on price appreciation. The reality is if you are holding onto a speculative asset over any length of time it should reward your risk-taking by HODLing. This isn’t greed. Its basic market principles taking straight from traditional finance.
Heart’s invention is unique to cryptocurrency, but it’s plain vanilla in the traditional banking sector. Money market instruments like Time Deposits and Certificate of Deposits is a multi-billion-dollar financial product for retail to institutional size investors. The basic innerworkings is that when you, the investor, puts US Dollar in a Time Deposit, you enter a contractual agreement where the bank pays you a specified interest rate for a specified length of time. The bank will then take the money and will reinvest it in the market and attempt to make a margin on top of what they are paying you in interest so they remain profitable as well as you. It’s a win/win situation for all. When the contract is done they return to you the principal + interest earned. It’s 100% safe and secure and that’s why they call it a high interest savings account.
Heart chose the Ethereum smart contract to act as the “enforcer” in this automated relationship between you and the “bank”. When you receive your BHX in your metamask account after going through the claim process you have the option to “stake” your coins right away for any specified period you want. In addition, if you stake on Day 1 you get a 20% Early Bird bonus, hint hint. Rather than having proof-of-work (PoW) cryptocurrencies that require huge energy expenditure, tremendous capital costs to maintain security and mining hardware that goes out of date every 6 months why not try to do better, which was his objective.
The game theory in this project is unique and brings intrinsic value to the token. There are other projects that allow you to stake and earn interest. But what makes Richard’s coin unique is that if you tell the smart contract you want to stake for a year and after 6 months. you decide to terminate and end the contract. You will get penalized an early withdrawal fee. As an example, if you only stake for 50% of the time that you promised you will lose half your stack plus ALL interest due to you. The reason being is based on how the liquidity pool maintains interest payouts. Remember, anyone that has a bitcoin stored in an address starting with a 1, 3, BC1 (which is most people) is entitled to BHX. There will always be a percentage of people who never claim their free airdrops (Satoshi Nakamoto). Well what happens in Bitcoin Hex is that for those who do not claim each passing week you lose a percentage off your stack and it automatically gets added to the liquidity pool. So, the less people who claim the larger the pool grows. Therefore, the less people who stake the more interest you get paid. However, this is where the game theory gets interesting because of what people might value more in a token.
Bitcoin Hex Value
A quick pump and dump profit or will people understand the value proposition that longer stakes equal larger returns. Think about it. The more people who stake, the smaller the liquidity pool because it has more hands to feed, however, this also means less coins in circulating supply. The less coins in supply will mean demand will drive the price up. Fascinating isn’t it? On the other hand, the smaller number of people who stake, the larger the liquidity pool and therefore the more interest you earn on your stake. However, the token price could be lower because less people staked which means there are more tokens in circulating supply. This project will be so interesting to watch and see how this game theory unfolds as there are other incentives as well. Like the 20% early bird staking on the first day to others.
In conclusion, what was normally a plain vanilla and boring investment in the financial services industry has been turned into something very compelling and needed in cryptos.
A token that finally rewards those who HODL. It’s energy efficient and has less of an environmental impact and did I also mention there is a “Big Whale Penalty”. Those who have more than 1,000 BTC who claim BHX get an automatic haircut on their stack. This keeps a more even playing field and prevents big whales dumping on you and collapsing prices i.e. Mt. Gox.
This token is likely to be an automatic Top 10 crypto within the early months so do keep up to date on the website. According to the site, more tutorial videos will be coming online to show everyone a step-by-step process on setting up metamask as well as the claims and staking process.
2019 is shaping up to be another year of innovation and progress.