A friend of Heleum recently asked some pointed questions that she got from skeptical people. We hear questions like these a lot. It’s the nature of progress to encounter resistance. I’ll post them here with my general response. The answers are just a bit lengthy for our FAQ page. 🙂
Q: Why should I trust my money to unstable currencies like Bitcoin?
Most people are unfamiliar with currency trading, and only a small minority of people have interacted with cryptocurrencies like Bitcoin, Litecoin and Ethereum. These currencies are purely digital and created not by governments or banks, but by computer programs that give them the best qualities of currencies without needed a human institution to mint them. Because they are so new and their uses are just being discovered, their value to the world economy and to local economies is constantly changing. They fluctuate wildly. For buy and hold investors, this can be scary. Their mental model of a “safe” currency is a reliably rising one – which makes sense if you’re married to a single currency.
Our conceptual leap was realizing that Heleum works the opposite way – it thrives on chaos. It’s perfect for unstable times and unstable currencies. It only moves when other currencies move enough, and only when those currencies are relatively low and have recently started going UP. Once it rides the wave, it exits into another currency, eventually settling in more stable currencies again, like the Dollar, the Pound, and the Euro.
So remember that Heleum isn’t tied to any volatile currencies for the long-term, but merely floats through them and takes advantage of their upswings. You can trust Heleum whether you trust cryptocurrencies or not. That’s what the general market needs to understand.
Q: If Heleum’s algorithm is so successful, why aren’t you just selling the algorithm to big financial companies that have huge structures for currency trading?
We get this question asked in many ways. In general, people are just wondering why we don’t just use this ourselves to make a ton of money, or why we don’t sell it for a ton of money to Wall Street.
Frankly, we don’t want established investment companies to have Heleum. They have perpetuated a rigged system that pits the powerful against the powerless and they haven’t innovated or automated hardly anything for consumer benefit in the last 100 years. The truth is that some big investment companies have their own proprietary applications to get 10 to 30 to 50% in gains each year and have had their own applications for decades and they do not share. The consumer has NEVER had one that doesn’t require a professional to configure and maintain. All the tools are being built for full-time investors and investment advisers and are just way too complex and too time-consuming for the lay person to benefit.
We actually don’t have much desire to make a quick buck on this, and we don’t see much sense in not letting the majority have it, as it is so mind-bogglingly simple as an app. It really should be in the hands of everyone. Taylor and I have spoken many times and we just feel that it needs to be out there, and if someone else does it better than us and gets more people to use a fully automated savings app with strong growth, then we’ll be happy. We would use a better system than Heleum, if there were one.
Aside from that, we have a somewhat idealistic vision of an automated future. Arthur C. Clarke said it best that “the goal of the future is full unemployment, so we can play.” We do not want to work a life of drudgery. We want the freedom to play, to learn, to explore, to grow. We feel that just about everyone wants to enjoy life and to have a vocation that inspires them. By automating small and simple tasks that humans don’t have time to do, like making sure you are in the right currencies most of the time, for example, we can free ourselves up for a life of passion and discovery.
We know the banking and investment establishment will die an ignominious death once effective consumer-owned bots replace financial services professionals almost completely. Jobs are for robots, so we can play.
This next question is similar to the first:
Q: This seems way too good to be true. How come a couple of guys in their 20s developed this, working from home, and not some major investment bank?
First off, let me just say to anyone out there that has an inkling of a dream of an invention: you will hear this if you come up with something good. And don’t let it hurt you. You are geniuses. Don’t stop creating.
We developed Heleum’s algorithm and not big banks because:
a. We studied the principles of automated trading in stocks with a local company that operates one of the only fully-automated softwares for the stock market that’s ever been made. We were fortunate to befriend the CEO and we know more about his software than almost anyone except him. His application is independent of the big banks & brokerages and he’s determined to keep it that way. For us, though, the stock market has proven to be too chaotic and expensive for us to recommend to our peers, so instead my brother and I looked at currencies, which are more stable.
b. We discovered that the best market movers were cryptocurrencies, and the big banks, brokers and governments are so utterly dismissive of them and their growth trends that they can’t even begin to formulate the trains of thought that would lead to our discovery. As such, we were in the right political/economic circles to find out about Uphold.com within months of it forming, which is the only platform around today that really allows for our app to exist, because it allows users to freely covert their balances between state currencies and the top cryptocurrencies.
By synthesizing our experiences with fully automating the stock market, and by understanding the simplicity and beauty and power of cryptocurrencies and how they work in relation to state currencies, Heleum just came to us. The regular players haven’t thought of it because they CAN’T think of it. For them, it simply does not compute. It’s basically impossible for anyone but my brother and I to have made this. We just consider ourselves lucky that our paths have led this way. If it hadn’t been us, it would have been someone else eventually, but I can tell you for certain that it would not have come from Wall Street.
We hope we hear such questions less and less in a not-so-cynical future where people accept that the most amazing wonders have come from the most unexpected places, with the goal of changing the world for everyone’s benefit.