Bitcoin vs Hex, a comparison

15th Oct 2019
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Not investment or financial advice. This is not an endorsement or recommendation to buy, sell or hold.  The staff of this site may own the asset/s mentioned on this page. Investing is risky and you may lose all your capital. Do your own research. See full disclaimer.

We receive no direct payments from the mentioned companies. Some links on this page are affiliate links, at no extra cost to you, we may receive commissions when you use them. However, we try our best to keep our articles fair and balanced.


   

This is not a sponsored article no payment has been done to write about Hex. This information is for informational and entertainment purposes only. All content on this site is not financial advice. Kindly note, we have a Bias when writing this article, because there are affiliate links below. However, we have made the best effort to provide balanced information on Hex. The staff of NodesOfValue.com are not planning to buy Hex, they will sell a portion from any Hex that comes their way.

Bitcoin is a currency but not a monetary system, a key attribute of a monetary system is the ability to generate interest. Bitcoin does not produce interest at the protocol level. You can make interest with Bitcoin, by lending through BlockFI , but this exposes you to counterparty risk. Meaning you could lose all your deposit overnight if these lending companies fail. Sell also: Crypto Lending. Learn more how to claim Hex

Interest is the cost of money when you rent a car you pay a fee and interest is the fee that you pay to rent out money. Bitcoin does not generate any interest at Protocol level, Hex, on the other hand, has interest programmed at the protocol level. The protocol is the contract that manages the system, it is the rules that once set cannot be changed. This contract cannot be modified or changed by anyone.

Richart Heart, founder of Hex

Gold is an asset class because it is both scarce and has brand name recognition. No more units of gold can be created. However, in the far future, we will be able to mine it from asteroids but that is still some time away. Hex has scarcity, but in a way, it has been created out of thin air. Anyone can create an ERC20 token, but not everyone is Richard Heart! What makes Hex unique is its combination of

Learn more: How to Claim Hex.

Comparison

Bitcoin Hex
Environment No

Bitcoin consumes as much energy as the whole of Switzerland.

Yes

Ethereum is moving to PoS, which consumes less energy than Bitcoin.

Whale Friendly Yes

There have been some initial Bitcoin adopters, who have never sold. They are called whales because they have 4 figure amounts of Bitcoin.

Not at launch

Hex has several mechanisms so the Hex Airdrop does not favour large holders of Bitcoin. However, these holders can always split their funds into multiple addresses. After launch anyone can accumulate Hex, to become a Hex Whale.

Security Yes

Bitcoin has had more than a decade in the field. Bugs were discovered, but they were always patched up on time.

Untested

Hex is based on an audited smart contract. The true test for Hex comes if it is not hacked after it launch.

Potential profits Unknown

IMHO Bitcoin can only reach six figures if the modern west has deep and unresolvable financial problems. Even when that happens governments will probably work against Bitcoin.

Even more unknown

The profits from Hex depends on many variables such as, how many new coins minted are sold and , the actions of the originator address.

Given the low brand recognition, Hex has much more room to grow quickly than BTC has and this could mean that more speculators are attracted to Hex. Increasing its price higher than the Bitcoin price.

Store of value and Brand Name Maybe

Brand name is the most important thing when it comes to value. Bitcoin is known worldwide.

Could be

Hex is virtually unknown, probably less than 100,000 people are aware of its existence at launch. Mr Heart claimed he has 15,000 subscribers to his email list as of 15/09/2019.

Cost of transactions Higher
Higher than Hex, Mr heart could have made them free if he used the EOS network.
Lower
Depends on the price of Ethereum
Mining Bitcoin miners have to sell their coins to maintain operations. Bitcoin requires specialised mining equipment Hex stakers have an incentive to keep the coins and re-stake them, this has the advantage of reducing the selling pressure on Hex.

Ethereum can be mined with GPUs, i.e. a normal computer.

Inflation Bitcoin has a limit of 22 million coins. Hex has no limit of coins generated. Inflation of hex is 3.69%. However, you suffer from this inflation only if you do not stake.
Network Sustainability There is no mechanism in Bitcoin to sustain the ecosystem. Meaning all the work done for Bitcoin is for free. Hex has an origin address which gets ½ of all HEX penalties. The funds in the originator address may or may not be used for the benefit of the Hex brand.
Adoption Has several mechanisms working for it. Word of mouth, those that believe in Austrian economics, Free market thinkers, day traders, Bitcoin Maximalists and several high profile evangelists. Hex has a referral program. Hex is an airdrop to all Bitcoin holders, giving it an immediate pool of users with skin in the game.
Protocol Bitcoin has its own chain and protocol, which has been stress tested for decades Hex runs on Ethereum. Etheruem has many advantages like the number of developers, a suite of applications but it also has scalability issues which do not have a clear solution.
Decentralisation Bitcoin has millions of holders and 1,000s of developers building on the protocol and probably millions of shops around the world that accept it. Hex depends on Richard Heart’s motivation for the project and his health, and on that, he constantly complains that he is gaining weight which has me worried about his long term health.
Comparison Bitcoin is its own protocol. When comparing Hex with Bitcoin, it is important to compare Hex with Bitcoin rather than Ethereum with Bitcoin. Hex does not inherit all the attributes of Ethereum just because it uses it as a protocol.
Speculation Bitcoin has a constant stream of speculators joining its ecosystem because of the power of its brand name Hex needs a constant pool of users and adopters for the price to go up. There is a danger that after the first year when most bonuses have ended, speculators will move on to the next big thing to hedge their bets rather than keep their fortunes in hex.
Adaptability Bitcoin is its own protocol, even though it is very hard to change, it can be done if all miners agree to do so. Hex contract cannot be changed.

 

You might be pondering if Hex is a scam or not, the rule of thumb for a scam is when someone takes away something from you. Hex is not taking anything away from you, except your time and even then that happens only if you choose to do so. The Hex Airdrop will take place at some point in November 2019. Learn more about Hex.

 


Not investment or financial advice. This is not an endorsement or recommendation to buy, sell or hold.  The staff of this site may own the asset/s mentioned on this page. Investing is risky and you may lose all your capital. Do your own research. See full disclaimer.

We receive no direct payments from the mentioned companies. Some links on this page are affiliate links, at no extra cost to you, we may receive commissions when you use them. However, we try our best to keep our articles fair and balanced.


   

Author: Jim Reynolds
Jim Reynolds. Is passionate about finance, passive income and cryptocurrencies. He writes about his passions on NodesOfValue.com. He has worked in the tech and financial industry for a few decades. He holds a masters in business admin and a bachelors in IT. All his writings are not investment advice.


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