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RE: Borrow HERO and Short it

in #bitshares8 years ago (edited)

Thanks, Bill!
Still new to this... What is the major difference or incentive to borrowing against the HERO vs the BitUSD? Wouldn't the HERO keep going up if it is at ~5% each year? It seems that its value would go up as the dollar currently goes down but I am sure I am missing something. 🤔

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Good question. I like the Hero because more conservative investors have an incentive to earn interest, much like a bond. It attracts a completey different market.

That is it exactly. The HERO will gain 5% year on year while the dollar historically lose 5%. BitUSD trades at dollar face value give or take 1% so it will lose its value over time.

HEROS are designed as a stable, non volatile smartcoin targeting retirement funds etc.. who are risk adverse.