The Complete Guide To Binance Coin (BNB)
Cryptocurrency has recently made a massive leap in popularity and adoption. It is finally in the realm of the mainstream after getting picked up by companies like Square, PayPal, MicroStrategy, and many others. As the benefits of decentralized digital currency are becoming more known, more investors are flocking to add crypto to their portfolios to catch some of the momentous returns we have seen thus far. The limited research into crypto adoption has found that the more the public learns about crypto, the more interested they are in becoming a part of the investor community. The purpose and principles of bitcoin and other cryptos have never been clearer, and investors are examining the best blockchains they can be a part of for a stellar ROI.
Bitcoin has long been the go-to investment for the crypto curious looking to add some digital currency to their portfolios, but more are considering altcoins like Ethereum, Tether, and Cardano. New education resources are pointing investors in the right direction by providing insight into how blockchain works and which cryptocurrencies provide real-world value and utility.
Binance Coin is one such currency that has skyrocketed to the top of the charts since its release in 2017. Binance has become an unstoppable force as a crypto brokerage, exchange, and learning resource. Their native cryptocurrency Binance Coin has steadily crept up to earn fourth place by overall coin market cap. BNB has become a top choice for crypto investors because of its utility and dominance in the market.
This guide will explain everything you need to know about Binance, the native BNB coin, and more so you can decide if investing in BNB is the right choice.
What Is Binance?
The Binance Exchange
Binance is the world’s largest cryptocurrency brokerage and exchange by trading volume, with an estimated 1.4 million transactions occurring every second. The Binance Exchange was created in 2017 by founder and CEO Changpeng Zhao (known as CZ). CZ founded the company in China originally, but its headquarters have since bounced from Japan to Taiwan, to Malta, in seeking a political climate lenient toward crypto operations.
The Binance Name
The name Binance is actually the combination of the words “Binary” and “Finance.” The play on words actually does a good job of summarizing the point of the exchange and cryptocurrency more generally. The point of decentralized finance is to remove the central system of banks, governments, and people while instead imparting the function of financial transactions to an algorithmic system of nothing but ones and zeros.
The Binance Coin ICO
In 2017, Binance launched the BNB coin as a native cryptocurrency that could be used to transact and pay discounted trading fees on the platform. They did this with an initial coin offering (ICO) that raised 15 million USD for the company.
In the ICO of 200 million BNB, half of the available BNB coin was distributed to public investors (100M BNB), 10% went to private angel investors, and the remaining 40% was divided up among the founding team. Since its inception in 2018, BNB has had a hefty over 333,000% return.
Binance Expansions
Since Binance was founded in 2017, it has seen massive success as a company. The business has expanded immensely, and they have since purchased other exchanges like India’s WazirX and media companies like Coin Market Cap.
They have also acquired companies like Trust Wallet, Swipe.io, and Dapp Review. Additionally, Binance has launched exchange branches for countries to provide a more conducive experience in line with individual government regulations. They have Binance.US for United States users and Binance.SG for Singaporean users, among others. Binance has also committed to educating and informing the public about how blockchain and crypto work as well as keeping us all up to date on new DeFi protocols.
Past Controversies
Binance has faced some controversy in recent history stemming from security breaches, over-centralization, and money laundering allegations.
In 2019, the Binance Exchange was the target of a hacking operation that resulted in a USD 40 million loss from investor accounts. The hackers managed to gain authentication codes to user wallets on the exchange and routed thousands of bitcoin to a private wallet address. Binance covered the stolen amounts for users, but the hack led to some distrust of the platform’s security.
Binance has also faced scrutiny for money laundering by U.S. law enforcement. According to Bloomberg, as of May 2021, the company is under investigation by the US Commodity Futures Trading Commission for letting users make illicit trades on the Binance platform. The exchange has been widely suspected of being lax on criminal money laundering transactions involving bitcoin and other cryptos. The company claims to have worked closely with international law enforcement as well as organizations like the U.S. CFTC to combat criminal activity.
What Is Binance Coin (BNB)?
Binance Coin (BNB) is the native cryptocurrency of the Binance exchange. It was originally created in 2017 as an ERC-20 token that would use the Ethereum network to run. The ERC-20 is simply a standard that allows for the streamlined creation of new tokens on the Ethereum network.
Since then, the BNB coins have moved away from the Ethereum blockchain to run on the newer Binance Chain. The new standard they used to replace the ERC-20 coins was the BEP-2, their own rule set for operating on the Binance blockchains. The BEP-2 is very similar to the “gas” or fee mechanism that Ethereum runs on.
How Much is One Binance Coin?
BNB as an asset has done incredibly well. It is now breathing on Ethereum’s neck in fourth place by coin market cap. It is separated only by Tether (USDT).
At Binance Coin’s launch, it was worth only USD 0.10, but it skyrocketed to nearly $700 per coin in 2021.
As of June 2021, the current price is hovering around $400. This is still a long way from ETH at $2,700 and BTC at $35,000, but Binance Coin is steadily gaining value.
Binance Coin Supply and “Coin Burning”
Different blockchains and cryptocurrencies have different mechanisms for providing built-in scarcity to provide value. Bitcoin uses a “halvening” event every time 210,000 blocks are mined, which occurs roughly every four years. It means that the new bitcoins rewarded to miners are cut in half, simply meaning that there will always be a set supply. In simpler terms, cryptocurrencies need a mechanism such as a capped supply to be valuable. If there were an unlimited number of coins, they would have no value. This is no different than the principle of inflation in traditional economics.
Binance has a mechanism called “coin burning” to keep the supply of BNB rare. Binance using coin burning to remove some BNB coins from circulation permanently. According to the Binance Whitepaper, the intention is to use 20% of quarterly profits to purchase BNB and effectively “burn” them or remove them permanently. Binance will continue to do this until they have successfully removed half of the original supply of 200 million BNB. This creates more scarcity and more value for BNB.
At this time, there is a maximum supply of around 170 million BNB coins with a circulating supply of $153 million (current numbers here). Investors can purchase BNB via the Binance exchange or through other cryptocurrency exchanges like Coin Tiger, Hotcoin Global, BitZ, or FTX.
Value and Volatility
The BNB coin underwent an explosion of value in early 2021 as the cost in January was around $40, and the price jumped all the way to an all-time high of $676 in May 2021. This bull run as powered by the Binance Smart Chain which enabled the Binance chain to execute smart contracts and allow users to stake coins in a new Proof of Staked Authority (PoSA) algorithm.
After the coin’s all-time high in May, it slumped to $262 amid an investigation into Binance and a pullback across the crypto market. The coin is on par with other cryptocurrencies that have a reputation as being vulnerable and volatile as the blockchain innovation finds its footing in the world. Like other digital currencies, Binance Coin is subject to price highs and lows amid government regulations, political climates, and even hostility from governments in countries like India, where there is an attempt to ban crypto entirely.
How Is BNB Used?
BNB has similar uses to other cryptocurrencies, but it offers some unique aspects. Its uses encompass all traditional uses of money as a medium of exchange, a unit of account, and a store of value.
Trading BNB: Traders can use Binance Coin to make trades both long and short. Many buy BNB for long-term hodling strategies, and many more use it to execute advanced trading techniques like options and derivatives trading. BNB can be traded for any other crypto on both centralized and decentralized exchanges.
Paying Exchange Transaction Fees: Users of the Binance exchange will often use BNB be to pay for transactions and fees at a 50% discounted rate. This is a huge incentive for Binance users to buy and hold BNB, boosting its value and creating a network that is more resilient.
Credit Card Payments: Binance Coin can be used to pay for credit card bills for cryptocurrency cards like those from Crypto.com or Binance’s own credit card. BNB can also fund crypto credit cards, effectively allowing users to buy anything, anywhere with BNB.
Processing Payments: As crypto gains more traction and familiarity, many are looking to buy goods and services regularly with crypto like BNB. Merchants can accept BNB as payment from customer wallets. Companies like PayPal and Square have made moves to allow customers to purchase bitcoin and other cryptos on their platforms. If they take the next step and let users pay and receive crypto, it could be huge for BNB and the crypto market as a whole.
Travel Bookings: BNB can be used to book flights and hotels with companies like Alternative Airlines, Travala, and TravelbyBit. Many more companies in the travel industry may soon begin accepting crypto payments as it is easy to accept while avoiding any changes in fiat currency.
Entertainment Options: There are several online platforms that accept crypto in exchange for virtual gifts, gambling, video games, and more. Digital ownership, streaming, and items like NFTs are growing more popular by the day. More platforms will likely move to accept crypto for things like in-game payments.
Investment: Many see a big long-term value for Binance Coin. It was only just created in 2017 and has already seen a 333k% return. Many are buying and holding to take advantage of the appreciation to come. With backing from the largest crypto exchange in the world, many are expecting another multiple to the ROI in the years to come.
DeFi Applications: BNB is often used in third-party DeFi applications like Bancor. With these applications, users can lend BNB or stake it with liquidity pools. They will then be rewarded with interest when someone else would like to borrow from the pool. There are many other advanced trading techniques used on DeFi apps that BNB can be a part of. Binance also has its own suite of ways users can earn by staking and holding BNB in their accounts.
What Are The Benefits of Binance Coin
The Binance coin provides users many benefits, especially while interacting on the Binance Chain. The goal of the Binance Coin is to provide a token that facilitates the trading network while appreciating in value. There are many pros to investing or holding Binance coin that we will go over here:
Binance Coin is a Great Utility Player — BNB does a great job of keeping the network running, providing rewards to key players, and making payments across crypto ecosystems. BNB is paid out to those who stake their coins to the network or contribute to validating transactions. BNB can be used to pay for everyday items like crypto card balances, items online, or P2P payments.
Coin Burning Leads to Increased Value — Binance Coin’s unique coin-burning strategy keeps the price of BNB stable and growing. By reducing the supply of BNB, Binance creates a very valuable and rare asset like bitcoin.
High Speed, Low Fees — Some of crypto’s biggest problems lie in slow transaction speeds, lack of scalability, and high network transaction fees. Those using BNB to trade on the Binance exchange have direct access to their matching engine, which facilitates 1.4 million orders per second. The availability means you will always be able to find a trade with your ideal terms. BNB makes trades on the network extremely fast and reliable.
Secure & Trustworthy — Although Binance has had some problems in the past, it has learned from security flaws and created enhanced security systems that rival any cryptocurrency exchange. They have the largest crypto user base in the world, with millions who trust their BNB and other holdings with Binance. The exchange itself uses a tiered system and a Secure Assets Fund for Users (SAFU), where they deposit 10% of all trading fees so they may protect and reimburse users in the case of another breach.
Trade A Variety of Cryptocurrencies — Users will be able to trade their BNB for over 360 different cryptos that are available on the Binance exchange. BNB has its own pairs on the network that users can choose from to meet their unique criteria. There is no need to transfer to another exchange for trading.
Trading Discounts — When using the native BNB token, users receive a 50% discount on trading fees. This can be important when making large transactions to avoid losing funds on trading fees. By paying only half of an already low fee structure, traders are incentivized to stick with the exchange and use BNB.
Participate in ICOs — The Binance Launchpad is a platform used to host and launch projects on the Binance network. Developers can create new blockchains and cryptos with launchpad and benefit from Binance user funding. BNB holders will be able to purchase coins in ICOs on the launchpad. These are also known as IEOs or Initial Exchange Offerings with Binance before they are listed on the platform for regular trading. This is a unique offering that sets both Binance and the native BNB coin up for success in the future.
How Can You Invest In Binance Coin?
Investors who are convinced of the Binance Coin value will be able to purchase BNB with a few methods. To buy cryptocurrency in general, you will need to first start with an exchange such as the Binance exchange. Binance has a few different platforms that cater to different countries to keep in line with their rules.
For instance, citizens in the U.S. will need to create an account with Binance.US. This version won’t have all the same features that regular Binance.com users will benefit from.
Here are the steps you will need to take in setting up an account with a cryptocurrency exchange. However, before you begin, you need to check if the exchange lists BNB or any other currency you wish to purchase. Different exchanges will have different cryptos available.
When creating an account with an exchange, you will need to verify your identity with some information. All exchanges have a unique process and rules when it comes to setting up an account, but you should have access to the following to make the process faster:
● Photos of your driver’s license, passport, or other country-issued identification so the exchange can verify your identity. This is used to prevent illegal activity using crypto.
● A WiFi connection that poses no security issues. You should only create an account with an exchange on a network that is private and completely secured. It should be password protected with no public access.
● Access to a method of two-factor authentication such as a cell phone. When you create your account and log in, you will likely need to authenticate your identity by having access to your phone.
● You will need to open an account with an exchange that operates in your country. Every country has its own regulations when it comes to cryptocurrency, so you should be mindful of this when reviewing exchange options.
● You will need a bank account that you can use to transfer fiat currency to your exchange account.
● Once you purchase BNB or other cryptocurrencies, you should think about where you will store those coins. Exchanges like Binance have built-in wallets that make it easy to hold your crypto and fiat funds, but they are not as secure as cold-storage options. By taking your crypto holdings offline, you are drastically reducing the risk of losing coins due to a security breach or a hack.
How To Buy Binance Coin (BNB)
If you already have cryptocurrency in a wallet or exchange, it will be relatively easy for you to trade it for BNB. Once you have everything in place with an exchange and fiat deposited to your account, you are ready to take the steps in buying Binance Coin.
1) You will need to sign into your exchange account that lists BNB as an option for purchase (such as Binance.com or Binnace.US). Ensure you are using a private and secured internet connection.
2) Navigate to the option to buy crypto with your exchange. Select BNB from the list of available cryptocurrencies.
3) Consider how much BNB you would like to buy with your fiat currency. Keep in mind that one BNB is currently trading at around $340. However, you may buy fractions of one for any amount. For instance, you could buy 0.2 BNB for $68.
4) After you make your selection you will be able to preview your purchase and see how much BNB you will be receiving in exchange for your fiat.
5) If everything looks correct and you are comfortable with the buy, click the option to complete your transaction. You will now be able to view your BNB holdings in your exchange wallet. From there, you can transfer your BNB back to fiat, trade it for other cryptos, or send it to a cold wallet storage option or a hardware wallet like Ledger.
Is Binance Coin a Good Investment?
So now you know how you can purchase BNB, but is it a good investment now? Will it remain one of the most valuable cryptocurrencies in the future? Investing in any cryptocurrency is bound to be a wild ride, but many show huge promise in their current and future applications.
Binance is quickly becoming a benchmark coin along with Bitcoin and Ethereum. One of its unique attributes is that it offers early access to new coins via ICOs. It has a huge developer ecosystem that drives new innovation on Binance blockchains.
Let’s not forget that Binance is the largest exchange in the world. And the driving force behind the exchange is BNB. That means Binance Coin won’t be going away any time soon. It is also less volatile than other altcoins, meaning it will attract those wishing to avoid huge dives in value. However, it is still susceptible to government views and regulations on crypto.
Binance Coin has performed very well over time. The earliest holders of BNB will have experienced an overall ROI of 333k%. This is the type of investment that creates millionaires, and it has. Those early investors of cryptos like bitcoin and Binance Coin who invested even sums as low as $100 have gained incredible sums if they held on to their coins. And here is the prediction for 2021 and beyond:
Binance Coin is just getting started. Remember that the company is only four years old! The crypto market, in general, has been compared to only being in the second pitch of the first inning — from the Winklevoss twins (founders of the Gemini exchange) at Bitcoin 2021 in Miami.
BNB stands to gain an incredible amount, and it is still relatively early in the game to get involved. The token could easily trade at $500, $800, or thousands of dollars in the near future. The more involvement the Binance network sees from whales and institutional investors, the more BNB will increase in value.
However, as bullish as the market may seem for Binance Coin, it does have some weaknesses that coins like Ethereum and others will benefit from. Binance is becoming a very centralized network which is antithetical to cryptocurrency in general. Binance owns a huge share of BNB tokens, meaning that they hold the most power over the network and decision-making. Since they have the power over who can validate transactions, there is potential that they can manipulate or hold influence over the blockchain. This would cause many hard-principled crypto investors to shy away from BNB since it doesn’t follow decentralization best practices.
Binance is forming a major conglomerate that spans their crypto exchange, media arms, educational resources, apps, ICO launch platform, and much more. The company will surely be a big force in the crypto arena for some time to come. Investing in BNB is like buying shares of the company (not publicly traded). It is anyone’s guess what will happen to the price of BNB, but the outlook for long and short-term investors looks promising.
More Ways BNB Owners Can Earn
There are a variety of ways BNB holders can earn yields with their coins. Yield farming and DeFi methods of creating income streams are becoming more popular every day. However, they can be complicated to understand at first.
Liquidity mining and yield farming are both terms for generating a reward in return for lending your money to be locked for a time in a liquidity pool. Liquidity providers will contribute to liquidity pools that people can take loans from (in the form of crypto).
There are a huge number of yield farming strategies, but the below are simple ways that BNB holders can earn rewards and interest on their holdings:
● Trust Wallet — Trust Wallet is a Binance-owned platform and crypto wallet that allows users to earn rewards while staking their BNB. The Trust Wallet site advertises that users can earn 30% and higher APY. That is an incredible return compared to most traditional finance investment vehicles. Binance is working with Trust Wallet to bring users new features like a native decentralized exchange, market monitoring, and more in-depth integration with all Binance tools.
● Staking — Staking is how users participate in a blockchain network by lending their digital currency to be used to validate transactions. With BNB, users can stake and earn large rewards for contributing to the network. Users can stake their BNB with Trust Wallet or on the Binance Smart Chain. Staking your BNB tokens on Binance will enable you to earn on their staking programs. They also have “locked staking,” meaning users can earn extra tokens and compound their overall crypto portfolio worth.
● Farming & Launch pool — Binance recently released their Launchpool platform where developers can create funds from ICOs and users can earn crypto by lending to them. BNB holders can contribute tokens to a liquidity pool while earning interest in the form of fees.
● Binance Savings — Binance has savings accounts that enable users to safely store their crypto while earning interest on their coins. This is similar to a normal savings account at a bank, but users stand to gain much healthier rewards. Users have the choice of flexible or locked savings. Again, like bank accounts, users can earn more when locking their funds for longer periods of time.
● Binance Card — Even when spending crypto, users can earn BNB. Users can earn BNB rewards for spending with merchants worldwide. BNB holders will be able to spend at any establishment that accepts Visa cards — they do not even have to accept crypto. The Binance Card’s rate starts at 1% cashback. However, users with more BNB in their accounts can earn up to 7% in cashback rewards.
Is Binance Coin Real Money?
Binance Coin is, of course, a real digital currency. At the time of writing, its traditional fiat value is around USD 340. So, the BNB coin is actually 340 times more valuable than one dollar. Crypto advocates have long asserted that there is more value behind cryptocurrencies than most fiat currencies. In America, the dollar hasn’t been backed by gold for decades, and the rate of inflation is out of control. With more countries looking to accept bitcoin and other digital currencies as legal tender, the general attitude toward crypto has been more “real’ than ever.
BNB can be used to buy a large number of items, including travel bookings and online goods. With the Binance Credit Card, you can use BNB to buy anything in the world. The card will simply convert your BNB to whichever fiat the vendor is using.
As far as cryptocurrencies go, the Binance Coin is one of the most supported and stable. The Binance exchange is the world’s largest, with a market cap of 1.3 Billion USD. With such a goliath supporting the currency, it is considered every bit as real as fiat or the number-one crypto, bitcoin.
What Gives BNB Its Value?
BNB is a scarce asset, much like gold with a set supply of 200 million Binance Coin and the unique coin-burning mechanism that creates even more scarcity. However, scarcity alone doesn’t drive BNB’s value. Here are some of the things that make BNB one of the most valuable cryptocurrencies in the world:
Incredible Incentives From Binance: Binance as an exchange is one of the smartest and most savvy companies in crypto. Since 2017 they have dominated the global crypto exchange market with a daily trading value of billions.
The value of BNB goes up as more people purchase BNB, so the company has provided amazing incentives designed to invite widespread adoption. BNB holders get enticing rewards in the form of reduced trading fees (at a 50% discounted rate), commission programs for introducing new BNB holders, the opportunity to get in on new cryptos before anyone else with Launchpad, and the potential for ever-increasing new ways to earn rewards on the Binance network.
The Binance Coin has risen in value by over 333k%. This is due to the widespread adoption of BNB and the Binance Chain. There is a unique incentive to using the blockchain and BNB currency with the trading platform, and this is partially what has led to it growing so quickly.
Binance Vs. Ethereum
Binance and Ethereum have many similar aspects, but they are vastly different when it comes to some key areas. The biggest ways that Binance and Ethereum differ are in centralization vs. decentralization and the features that both systems have in place. Keep in mind that both of these blockchains are implementing new features and ways of working, such as Ethereum 2.0.
Ethereum
Ethereum is the second-largest cryptocurrency by coin market cap and is a developer favorite for creating new protocols and blockchains. Ethereum is often referred to as the “World Computer” because it has so many decentralized and contributing nodes and computers. It would be nearly impossible to shut down the Ethereum network as it has so many parties contributing to keeping the blockchain up and thriving. The cost of such widespread decentralization is transaction speed and processing. However, they will solve this with a much more efficient proof-of-stake algorithm soon with Ethereum 2.0.
As you may remember, Binance Coin was originally launched on the Ethereum platform as an ERC-20 token. Ethereum is one of the best places for developers to create their blockchain projects and applications. The Ethereum token itself is much more valuable than BNB at this time, although neither is showing signs of slowed growth. One ETH is worth around $2,500 currently.
Binance
The Binance Smart Chain is much more focused, with less room for programs and applications. Its only purposes are to host cryptos and exchanging them. This allows the chain to be much faster than the Ethereum blockchain. They prioritized being able to handle huge workloads over adding too many features.
The two chains have almost taken opposite approaches in building a blockchain network. Ethereum prioritized features for developers first, and Binance prioritized speed and capacity first. However, both of these organizations are looking to bolster their weak spots as soon as possible. Once Binance is fast enough, it will add more features, and now that Ethereum has all the features, it is looking to solve its speed and scaling problem by changing to a proof-of-stake blockchain.
Other Competitors
There are also other blockchains with similar purposes in the race to be the most used in the world. Blockchains like Polkadot (DOT) and Cardano (ADA) are two contenders that are gaining tremendous headway with better solutions to some of the problems that have traditionally bogged down platforms like Ethereum. Only time will tell which blockchain becomes the most prevalent in as little as two years. Ethereum and Binance have a leg up, but anything can happen in the fast-moving world of crypto and blockchain.
What is BNB Worth?
So, what is Binance Coin worth? At the start, one BNB coin was only worth around $0.10. At the time of writing this article in 2021, the current price is around $340. Binance Coin went through a pricing drawback after the late May slump in which bitcoin lost more than 40% of its value. This hit to the crypto market was caused by international government attitudes towards crypto, China’s purported crackdown on crypto mining, hacking attacks involving crypto, Binance investigations, and more.
However, the crypto market and Binance Coin are looking more promising than ever as crypto advocates are looking to circumnavigate the negative attitudes towards crypto while forging full steam ahead with new innovations in blockchain and DeFi daily. El Salvador recently became the first country to accept bitcoin as legal tender, and more are sure to follow suit.
There is a capped supply of 170,532,785 BNB coins, and153,432,897 are circulating since April 2021. As you may remember from earlier, Binance’s coin-burning strategy takes coins out of circulation to improve the value and scarcity of the coin over time. BNB stands to gain an astronomical amount of value as the largest crypto exchange in the world backs it.
Already, the coin has gained a 333% ROI for investors, and many believe the coin could still see huge gains to reach highs of $1,000 in the next few years.
A variety of factors can influence Binance’s growth and BNB’s value, but they could soon dominate blockchain development services as well as the cryptocurrency exchange industry. In the next section, we’ll take a look at some of the biggest risks to Binance.
What Are The Biggest Risks With Binance Coin?
Binance stands to gain a huge amount of value both as a company and as a currency, but will everything go according to plan? History would say that the chances of Binance Coin reaching astronomical new highs unscathed and uninterrupted is not likely. This new convergence of technology and finance has been anything but boring, and investors would do well to expect the unexpected when it comes to BNB, bitcoin, and all other digital currencies.
Regulation
Cryptocurrency and blockchain have disrupted the financial system worldwide. The traditional systems of banking, finance, and even monetary policy are experiencing some of the shakeups from bitcoin and others. Governments like China have made moves to halt crypto mining amid finger-pointing at energy consumption and high volatility for individual investors. Governments like India have presented outright bans on crypto (although not passed) and have moved to prevent banks from dealing with crypto companies.
Many countries are experimenting with their own Central Bank Digital Currencies to head off decentralized currencies like bitcoin, BNB, and ETH. Governments cite they are creating CBDCs to provide citizens with better ways of transacting without intermediaries. However, some think they may want to push out blockchain-based currencies. In contrast, there are many countries that have seen the benefits of decentralized digital currency like Singapore and El Salvador. Havens for blockchain-based decentralized currencies will begin to reap the benefits that countries like China are forgoing.
BNB has so far survived by moving from China to find more agreeable policies in places like the Cayman Islands and Malta. There will likely always be countries that are more accepting of companies like Binance who support cryptocurrency, but it could be a problem for widespread adoption if countries start to lay heavier regulations on citizen-investors.
Decentralization
Some have pointed out the fact that Binance Coin is much more centralized than currencies like bitcoin. Since Binance itself owns much of the BNB supply, they hold the key to governance and power over the network. This is somewhat antithetical to the premise of cryptocurrency, so Binance will have to watch its step when making decisions in the future. If they make moves to decentralize the network further, this could be great news for BNB. But if they continue to hold more centralized power, it could mean that coin holders will begin to seek other networks to do business on like Ethereum or Polkadot.
Attacks & Hacking
Binance has had a history with hacking as they experienced a major hack in 2019 when attackers used various methods to compromise the network and steal $40 million in bitcoin and crypto. Increased centralization also makes Binance more open to attacks. Part of the allure of a completely decentralized network is that it is nearly impossible to compromise.
Binance has had its trials in the past, but it is still the largest and one of the safest exchanges in the world. They have since revamped their security and ensured that hackers would never be able to use similar methods in future attacks.
What is Next For Binance Coin?
This is a huge time for the cryptocurrency market as a whole. Binance is doing everything it can to stay ahead of the curve with things like compliance, decentralized finance, responsibility, and security.
Binance has already released a dizzying number of projects, but they will be looking to expand and cement its presence as the largest exchange and crypto company in the world. CZ is leading the company with a collaborative effort in fulfilling new guidelines and regulations set in place by global economies. He compared this effort to Microsoft and Google’s efforts to comply during the early 2000s as the internet was just beginning to realize its potential and governments were struggling to keep up.
CZ also has big plans in the works to expand on the exploding DeFi sector of cryptocurrency. The Binance mining liquidity pool is already one of the most popular DeFi pools. He is aiming to bring more users to blockchain with these methods of earning crypto. They seek to continue their work as an incubator with Binance Launchpad in bringing more innovative new blockchain projects to the world. CZ stated his optimism embodied by huge investors and finance personalities coming to aid decentralized finance. PayPal, Square, Microstrategy, Mark Cuban, Elon Musk, and thousands of others have put cryptocurrency on the radar of countless hedge funds and institutions who need to bring the best returns to their investors.
Binance aims to make it increasingly easier to buy crypto with fiat, and they want to make replacing fiat currency a more realistic goal. They want to continue making crypto payments more mainstream as well with tools like their Binance Card that allow seamlessly spending crypto anywhere. They want to provide easier cross-border payments with Binance’s peer-to-peer spending network. In all, Binance wants to be the go-to provider for the tools that will help us in our new decentralized world.
As far as the future price of BNB, many have suggested that it could reach prices of $800 or more by year’s end. In the future, the price could even touch the thousands as Ethereum has.
In a closing statement to his personal address, the CEO and founder of Binance CZ wrote:
“In 2021, we will continue to keep our heads down and build products users love. We will continue to develop and improve services that are beneficial to society and protect our users and the industry. I’m very excited about the new developments and products we have planned for 2021.” — CZ, Binance in 2021: Innovating in an Increasingly Decentralized World.
Binance Coin (BNB) is a unique and highly valuable cryptocurrency. The future of Binance is anyone’s guess. It could be the next bitcoin or fall to the wayside as other cryptocurrencies take the lead. One thing is for certain — it will be a wild ride!
****NO INVESTMENT ADVICE****
The information provided in our Coin History articles does not constitute investment advice, financial advice, trading advice, or any other type of advice whatsoever, and the information on our website should not be trusted as such. We present this information to you as general market commentary. The information does not constitute investment advice or any professional financial advice of any sort whatsoever. We do not advise or recommend that you buy, sell, or hold any cryptocurrency, digital token, ICO, or digital asset whatsoever. We advise users to conduct their own due diligence and consult with a qualified financial advisor before buying, selling, or holding any type of digital asset or cryptocurrency. We will not be held responsible for any investment decisions made based on the information provided on the website.
