When people hear the phrase "Binary Options" they tend to have one of a few reactions and most of them have a certain level of disgust with them. Reactions tend to fall into three categories - "No idea what that is", "Binary Options Bad", "I'm a 'millionaire' today because of Binary Options". For me I fell into the first category. I'd heard the phrase before but due to the fact that I'm sometimes easily swayed by public opinion, I opted to stay away. That was until I was doing research for my most recent article on my Top 5 favorite Tron (TRX) based Dapps and stumbled upon Bulls vs. Bears, a PvP Binary Options Trading Game with Daily Dividends, built on the TRX Blockchain.
If you're anything like me you hate losing. I think I hate losing more than I love winning. Which is why I hate gambling. I hate going into a situation knowing mathematically I'm going to lose money. That singular fact is why I didn't include a casino website on my Top 5 TRX Dapps list, my pride wouldn't let me continually lose money in something I knew was unwinnable. Now you may be thinking, Absolute Unit, you're an idiot - Binary Options IS gambling! That's where you're kind of wrong my friend. Bulls vs. Bears is not a typical Binary Options platform. It's PvP Binary Options. I'm not playing against the house when I make my prediction, I'm playing against another player. Which means no House Advantage. No mathematical equation that shows the the common phrase "The House Always Wins" is true. It's just me clicking buttons on my phone against another guy clicking buttons on his phone.
I can get behind that. I love skill based games. So I decided to go a little more in depth and explore how this platform works, as I feel I didn't quite do it justice in my previous article. Before we get into the specifics of how Bulls vs. Bears works, let's cover some basics first.
What is 'Binary Options'?
At it's most basic level Binary Options are a simple Yes/No proposition. I believe Wikipedia did justice in describing what Binary Options are in their article, so I'm going to use that here -
Will an underlying asset be above a certain price at a certain time?" Traders place wagers as to whether that will or will not happen.
How the Game Plays
As I mentioned before this is a PvP Binary Options game so it plays out a little differently from how other Binary Options platforms may work. Any number of players may join a session but at least two are required to make a profit. Each player predicts whether the price of Bitcoin will go UP or DOWN in the next 30 seconds. Once this 30 second time frame is over, the player(s) that chose correctly earn what their opponent(s) bet as well as BvB Tokens, I'll cover what BvB Tokens are below.
The Daily Dividends
So how do Daily Dividends come into play? Through the BvB Tokens that I mentioned above. Whenever a bet is completed on Bulls vs. Bears BvB tokens are distributed. The current mining rate of BvB tokens is 100 TRX bet = 1 BvB Token, win or lose. These tokens can then be frozen on the BvB platform and daily dividends (3% of every pot) are distributed based on the amount of BvB tokens frozen and volume of bets on the DApp. This is an important fact to note - the amount of earnings from the frozen BvB tokens is not based on loses by the players, as the winning player earns whatever the losing player bet, but based on the volume of bets done on the site.
With 60% of the supply of BvB owned by the players it seems like a pretty transparent way for a gaming platform to distribute their earnings.
Why Write This Article?
Coming from America, where the most education we get in financial literacy is managing our funds buying lunch, I'm very passionate about the general public getting better financial education. Now, I know Binary Options is not how stocks or Crypto is typically traded but I can say from my own experience using this platform I've gotten a better understanding of just how volatile Bitcoin is and picked up on a few market trends just by playing a game.
There's also a high level of transparency with this game, which cannot be said for every DApp out there.
I hope you enjoyed reading this article as much as I enjoyed researching and writing it. Feel free to check out my last post on TRON's Monthly Airdrops.
Also you can check out my poorly run Twitter account (https://twitter.com/AbsoluteUknit) and watch me still try to figure out how it works