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RE: The Hero from BitShares Island... +5%

in #bitshares8 years ago

Thanks for the reply Stan. I think I would be more receptive to the idea if it was presented as a BTS derivative that increases risk by using leverage. BTS is a highly volatile instrument both to the up and downsides, so having a leveraged derivative of a volatile underlying seems like a very aggressive approach to take with the whole Bitshares system. I don't think it is wise to build a model that requires perpetual growth to stay solvent. Inevitably there will be periods, especially in the crypto space, that have severe draw-downs. It seems to me the Hero would collapse very quickly under even a moderate sustained pullback.