Binance Coin may take over Bitcoin as the priority in the cryptocurrency space. Now there is a trend where the cryptocurrency market reacts to the dynamics of the BNB token. BNB now seems to be leading the market. The token price goes up — other cryptocurrencies go up, and vice versa. Perhaps BNB is the new Bitcoin?
To begin with, it is essential to consider the very young age of Binance Coin compared to other players in the crypto market. Despite Binance’s dominance in the crypto-exchange segment, Binance Coin’s market share and daily transaction volumes are negligible compared to the king of cryptocurrencies, Bitcoin.
While BTC’s capitalization reaches $99 billion — more than 54 percent of the crypto market — BNB is stretched to $3.17 billion. Binance accounts for 40 percent of bitcoin trading. We can conclude that the exchange itself contributed to Bitcoin’s growth.
Going back to the age of the coin, it is worth thinking about the too-short time range. It was simply impossible to collect the data during this time, which would be enough for such assumptions. Moreover, the market has been in a bearish trend for many months. Therefore, it is still unclear how BNB will behave during a bull trend. Against this background, many people exchange bnb btc.
Why invest in Binance Coin (BNB) now?
Binance Coin (from now on, BNB) is a token solely owned by the Binance exchange. The launch of this token happened in 2017. And its first, starting price was only 10 cents. This coin is offered to pay transfer fees at a special discount.
Those who purchased tokens just now get a 50% discount every year after that. The deal is reduced by 2 times. I.e., in the second year of possession, the value will be 25, in the third year — 12,5, etc. And after the fifth year of ownership, the discount is gone.
Binance is probably the most famous cryptocurrency exchange. For 4 years, since its inception, the business has developed rapidly and has become a market leader in trading. However, due to the vast number of new users, Binance has closed the registration for new investors one day. The chip of this exchange is a wide range of services for its users. On this exchange, BNB tokens are so popular and increasing in value.
BNB — combustion and issuance
Whitepaper practices periodic token burning. Literally. The company destroys tokens. Once a quarter, 20% of Binance’s proceeds are used to purchase tickets for the crypto market, after which they are burned.
By doing so, the reduced number of tokens goes up in value. To date, there have been more than 15 incinerations, and these are far from the latest numbers. As a result, the total number of BNB tokens is scheduled to be reduced from 200 million to 100 million. After that — these 100 million tokens will be credited to the exchange’s account. Therefore, it makes sense to think about a profitable btc to bnb exchange.
How to use BNB correctly?
Binance exchange, on this account, provides a massive package of services:
- a large number of currency pairs;
- offers to use BNB tokens to trade;
- they can even be used to obtain a loan;
- Naga — provides access to share trading;
- buying fiat currencies.
Binance currently has two blockchains in operation:
- Binance Chaih.
- Binance Smart Chain.
The task of these blockchains is to process transactions and contacts. The work is done on Proof-of-Stake consensus. There is no reward in tokens for the block created by the user. BNBs are centered and issued forever and only one. Hence the conclusion — a BNB token is a deflationary asset.