Hexabot’s high payout can no way be sustainable, nor can its arithmatically increasing free Bitcoin faucet. Bitcoin is limited to 21 million coins and there’s no way everyone can be millionaires, therefore Hexabot must be a scam! Let’s take a closer look at the validity of these claims…
Have any of these thoughts crossed your mind or do you know any one else with these concerns when you are considering whether or not you should invest in Hexabot? I know I definitely have had these concerns before I decided to invest over $3,000 into Hexabot a month ago. In fact I should thank a Reddit commentor for inspiring me to write this article:
Mindset: Logic vs. Emotion Decision Making
In the fields of business, trading, or investing, the hardest part is to make decisions when a lot of money or people’s livelihoods are at stake. These decisions are often emotionally charged and you may not have all day to make a decision because if you wait too long the opportunity may be lost. What can make you more doubtful or confused is if others communicate their argument with intense swag and passion which is opposite to your initial decision.
If an outspoken friend you respected said forecefully and emotionally while you are blindfolded at night, “OMFG, OMFG, THE MOON IS SQUARE! IT’S A SQUARE!” Are you going to believe him? Of course not, regardless of how credible or respected your friend is. That’s because you have seen the real moon before and know what it’s like.
The digital world of YouTube and social media we live in today makes sound decision making even more complicated because EVERYONE can claim to be an expert. One reason why high frequency stock traders and CEOs managing large corporations limit their exposure on social media or don’t watch TV is because they want to limit their distractions so they can make clear decisions. And if they don’t know something, they will seek out a credible expert or consultant for advice rather than trusting John Smith on a forum.
I’m Not An Expert or Your Financial Advisor
I’ll be honest with you. I am not a professional or seasoned investing or trading professional. I have not managed million dollar hedge funds before. I have not built or traded with automatic trading bot software before. I cannot predict the future. But, I know people who I consider credible experts in all all of the above topics that have helped me make my final decision with Hexabot.
I’m writing this article as I am on a business trip in Asia. Yesterday, I had lunch with a friend who has made hundreds of thousands if not millions during the dot com boom between 1995 and 2000. The boom was so bullish that it would be abnormal if he was not making 5-figures a day. He was even cash advancing all of his personal credit cards to so he can turn the funds into high returns.
Risky? Hell yea. But did the boom last forever? No.
In fact after the year 2000, when the bubble collapsed and the bull market was over, he lost all of his money and broke even at the end because the same strategies and algorithms he used just simply stopped working.
Moral of the story: No opportunity lasts forever. Sieze it when you see one and do everything you can to make the money. With this type of attitude, my friend later because very successful in other businesses. But he learned to never let the emotion of greed overtake him ever again. His advice? Always set a clear stop loss. Never overextend the risks to a point of no return if you fail.
Why People Claim Hexabot Is A Scam
- They truly don’t think its possible (it’s too good to be true) and want to protect themselves and their friends from getting hurt.
- Sour grapes theory: They are scared to take the risk themselves so they don’t want others, especially people they know about, to become more successful then they are.
The first reason I will honor. The second reason I will not. Don’t be a sour grape. The following information is dedicated to help folks in the first category get factual answers for their questions and concerns.
So Is Hexabot Sustainable?
Let’s take a look of each objection one by one:
First, the concept of trading bots are real. Here’s a list of open-source crypto trading bots. BitConnect uses bots. Stock markets use much more expensive and sophisticated trading bots in High Frequency Trading. Hedge funds and insitituions spend millions to develop and tweak their bots. They have money to hire the best programmers and developers in the world. Luckily, institutions with this kind of money is not involved in crypto markets, at least not yet.
Peter, the developer of Hexabot, has developed Hexabot to leverage other investors’ money to increase the profitability. According to Peter, Hexabot will earn -5% to 8% on normal days and up to 20% on lucky days. (Source: Chad Burton). A lot of profits are stored in a “rainy day fund” to pay out investors on bad weeks.
So where’s the proof bots are used?
First, thanks to the Unofficial Telegram Community, we have evidence that the movement of crypto between his bots does affect bot performance, suggesting the bots are real.
Second, Peter has publicly announced many times via the Community Chat and Unofficial Telegram Chat that he is working on new features for his software and also mentioned his experiences with the precursor bot he used before Hexabot was launched.
For instance, he is seeking beta testers right now before the fourth bot is released. This fourth bot is supposed to let the user add custom parameters to further control how the bot operates and pays out.
Peter is also thinking about creating a desktop version for his bot software and charging a yearly subscription which builds a case for actual software development behind the scenes.
Cryptocurrencies is currently in a “crypto bubble” and nobody knows how long it will last.. Bitcoin is expected to exceed $10,000 by the end of the year. During the dot com bubble, trillions were poured in and lost when the bubble popped. The coin market cap as of today is around $263 billion and is nowhere near a trillion dollars yet.
Since crypto is not a business but rather a digital currency, the market cap of “All Money” is the limit and it is my opinon that the market cap of crypto can surpass the maxmium value of the dot-com bubble.
During the dot-com bubble, there were traders that can make insane returns like what Peter is doing now. As long as the bubble is growing and more new money is poured into crypto market, Hexabot’s trading profits are sustainable.
When will the bubble end? Nobody knows. But it will on day, as dictated by history and laws of economics. The question is, do you want to make money off the bubble right now?
Second, it is wrong to assume that Hexabot must always keep the payment percentages the same. If the bots are not performing as well anymore, their payouts can always be decreased or become variable depending on the markets and performance.
Lastly, be reassured that Peter will do his best to keep Hexabot sustainable for as long as possible with its current payout rates as long as the market conditions are right.
First, the ability for Hexabot or any website’s faucet to give away Bitcoin has no direct relationship to the limited supply of Bitcoin in the market. The limited supply only affects the market price of Bitcoin due to basic economic principles of supply and demand. In other words, the more demand there is for Bitcoin when the amount available in the world is getting smaller and smaller only drives the Bitcoin price up. Therefore, faucet payers will adjust the amount of Satoshi’s given out based on the market price of Bitcoin to remain profitable. I am not sure why Hexabot would not do the same thing and risk harming its investors.
Second, Hexabot trades many other coins besides Bitcoin and each coin has their own limited supply. Therefore the true market cap is way beyond 21 million Bitcoin.
Third, let’s do some maths to see how sustainable the faucet really is:
Hexabot gives out 50 to 200 satoshis every hour plus your bonus satoshis (you get +1 every 10 claims). One satoshi is ₿0.00000001, and if one Bitcoin was worth $10,000, that would equal $0.0001.
Let’s say there are 1 million Hexabot users clicking on the faucet every hour for 24 hours and they are so lucky they land on 200 Satoshis each time (I am purposely inflating the numbers to make a point):
$0.0001 × 200 Sat. × 1,000,000 = $20,000 per hour × 24 hours = $480,000 per day
Peter’s faucet overheard costs would be $480,000 per day or $3.36 million per week if his site had 1 million active users all clicking the faucet daily without sleeping.
Let’s say one half of the 1 million users actually deposit the minimum amount of Bitcoin into Hexabot, ₿0.005 or $50.
$50 × 500,000 = $25,000,000
Peter would end up managing a $25 million dollar crypto hedge fund.
The faucet’s weekly payout of $3.36 million would be equivalent to 13.4% of the fund.
Let’s say all of the 500,000 investors are on Swing Mode. That means Peter’s bot must be making at least $6 million per week to pay the investors, or 24% of the fund.
What about the compounding? 0 to 100% of the investors’ earnings are reinvested each week. The funds compounded comes directly from the investor’s earnings and does not increase its overhead costs.
Then there’s the 5% affiliate commissions for all referral’s deposits.
Hexabot’s weekly overhead costs is equal to 24% + 13.4% + 5% = 42.4% of the entire fund if its faucet users are very, very lucky. The other 58.6% of the fund will be used for “rainy day funds” for red weeks or can be considered profits for Peter.
In reality, the weekly overhead cost should be much less because there is no way every user is spinning the free faucet every day, 24 hours straight without sleeping, and consistently enough to build up high free Satoshi bonuses. Realistically, I will give an educated guess that the faucet accounts for no more than 3 to 5% of the overhead costs. Which brings the total overhead costs no more than 32-34% of the entire fund.
As more users join Hexabot, the fund will grow in size, but the overhead cost percentages will remain roughly the same percentage of the entire fund. So don’t let the millions confuse or intimidate you. To break even, Peter’s bots need to have average weekly performance gains better than 30-37.4%.
Previously, Peter mentioned that his daily profits on normal days are -5% to 8% and 20% on lucky days. With such markets where crypto can gains can be double digit percentages within a week, is 30%+ performances possible? Absolutely.
The example above is 100% hypothethical. There is no way Hexabot has 1 million users right now (at least not for a one month old program). There is no way Hexabot has so many people using the faucet (let alone 24 hours a day and hitting 200 Satoshis each time).
Hopefully this article has shed light as to how Peter is structuring his Hexabot crypto hedge fund and show that having fund performances of over 30% per week is possible during a crypto bubble market.