The appeal of the Hive Backed Dollars (HBD) is spreading. It is something we overlook but this has characteristics that will cause companies to seriously think about adopting it for their platforms.

Before going any further, some of what we are going to cite in here is pertaining to a project that is raising money. For that reason, nothing in this article is to be construed as being in favor, or opposition, of the financial merits for this project. Do you own research and make any financial decisions based upon that along with professional advice.

With that out of the way, we have a gaming platform that is being built called NoLimitCoin. It is designed for betting to occur without having to trust a 3rd party. By engaging with cryptocurrency wallets, users can place bets as they see fit.

Part of the reason why this is a natural progression is because the gaming industry mirrors cannabis. Even though it is legal in many areas, it is treated harshly by the regulators and financial institutions. In other words, they are always a target.

Turning to decentralization and cryptocurrency is a natural way around this. One of the biggest changes is that banks cannot block its customers from engaging with the platform. This is one of the keys to cryptocurrency.

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HBD As The Primary Stablecoin

The CEO, Rafael Groswit, appeared on the latest episode of CTT. He joined the discussion to share what is taking place in the gaming world and how NoLimitCoin seeks to change that. It was a very educational session about an industry that is in need of our "free speech" solutions.

What stood out is when the CEO realized what HBD brings to the table. While they will accept other stablecoins (along with other cryptocurrency) for betting purposes, there is a benefit to pushing users to HBD.

One of the biggest is the fact that the transactions are not only fast, 3 second block time, but also feeless. This means that there is no additional charge to placing a bet.

We all are aware of the limitations with Ethereum. For that reason, this project is presently operating on BSC. It is a great deal more cost effective, so BUSD or a stablecoin on there has appeal. The challenge is a cost still applies. While 10-15 cents is much better than $50, it adds up over time. As you can imagine, if a platform is doing millions of transactions, that amounts to a lot of money.

By utilizing HBD, the transaction fees are exactly zero. Of course, there will have to be some HP in the wallets or the platform will have to delegate some Resource Credits. Either way, the tools will be there for users to transact in a feeless manner using HBD.

Here we see where it is in the company's best interest to persuade users to engage in HBD as compared to other stablecoins. After all, even if the users are paying the fee, wouldn't the site prefer that to remain in their wallets, so they can bet with it? The answer is obvious.

The best tech does not always win. However, when the benefits of that technology are spelled out, it often can make a difference.

20% APR On Savings

Many people do not visit gaming sites daily. Instead, they post some money and play when the mood strikes them. Regardless of how often people play, there is money available when they want to play a few games.

For the purpose of illustration, we will use the concept of a trading account. When someone invests in the stock market, he or she gets a trading account and funds it. The cash, once it clears, is available for trading. When it is not used, it sits in a money market account, drawing a bit (miniscule) interest.

With HBD, NoLimitCoin can offer the same thing. Since any tokens placed in savings earn 20%, this can be part of the operations.

How would this work? There are a couple ways to do this. Probably the easiest is for users to deposit their HBD to the site to go into savings. Why would anyone incur the extra risk when he or she could just deposit it through the Hive wallet? One word: incentive.

Perhaps the site offers 22% APR on any HBD placed into the "savings program". Under this scenario, the HBD would be transferred to the site's wallet(s) and staked. Hence, it is earning 20% HBD.

Of course, NoLimitCoin could offer a dual payment system. Perhaps it pays out 17% APR in HBD and another 5% in NLC (the platform's native token). Thus the platform is earning 3% annually. This will help to ensure the viability of its operations.

Another scenario might be to simply offer 17% on the savings. This is less than the 20% paid in HBD savings. However, this can be made up by offering different incentives on the platform. For example, by depositing a certain amount in savings, one gets additional features not normally offered; kind of an upgraded membership. Here we can see on site incentives added to compensate for the loss in APR.

Whatever the approach, NoLimitCoin can use this as a funding mechanism. Also, it is at the base layer of Hive, so it is not incurring any third party risk. This is vital when dealing in an industry the authorities (and politicians) like to grandstand over.

HBD's Value As Medium Of Exchange

In the cryptocurrency world, we often overlook how valuable a coin can be as a medium of exchange. With blockchains charging fees, this starts the process of mirroring the existing financial system. Hive brings something different to the table due to its design.

With HBD, one is able to enjoy the feeless transactions that can take place on the blockchain. That is very valuable to organizations who are concerned with profit markets. As stated earlier, when something starts to engage in millions of transactions, every penny counts.

HBD offers a solution that can be very appealing. The CEO of NoLimitCoin immediately saw the benefits to his business.

We look forward to NoLimitCoin integrating it into the platform and enjoying the value that HBD offers.

For those interested, here is a longer interview about the project that was posted last year.