Unless you are a newbie in the crypto universe, you definitely know what Binance is. For several years, Binance has been the leading cryptocurrency exchange. It has facilitated more cryptocurrency transaction than any other platform, and its popularity continues to grow with time.
Binance, as a platform, has done a lot for cryptocurrency users and investors. How about Binance, as a cryptocurrency?
That’s right, Binance has its own cryptocurrency, simply called the Binance Coin (BNB). It is the native currency of the platform that is used to trade and pay fees on the Binance cryptocurrency exchange.
Just like the exchange platform, Binance Coin is growing in popularity. Though it is still a long way from being as popular as Bitcoin and Ethereum, it is popular and well-revered in the cryptocurrency world as well as in real-world transactions.
From all indications, Binance (BNB) is a valuable digital asset. It has been around for years and is considered a good investment option for crypto investors. But will Binance Coin make you rich in the next ten years?
We will discuss the most important things you need to know about Binance here. Read carefully as we will present this blog in a manner that will help you make an informed decision about turning to Binance (BNB) for long-term investment.
What Is Binance Coin?
Binance Coin (BNB) is a relatively new cryptocurrency that is primarily used to trade and pay fees on the Binance cryptocurrency exchange, which is the largest cryptocurrency exchange in the world.
When Binance Coin is used in transacting on the Binance exchange, users receive a discount in transaction fees as a form of incentive. The Binance Coin, commonly referred to as BNB can also be traded or exchanged for other cryptocurrencies like Bitcoin, Ethereum, Ripple, and the rest.
The Binance Coin was launched as a cryptocurrency in 2017. Initially, it was built on the Ethereum blockchain and worked on the platform with the token ERC-20. It has since become the native currency of Binance own blockchain, commonly called the Binance Chain.
Uses Of The Binance Coin
Some people believe that Binance Coin is only used for trading and paying transaction fees on the Binance Exchange. This is not and has never been the case. Users are incentivized when they use BNB to transact on the exchange, but the coin is used for several other things.
Below, we will briefly discuss the different uses of Binance Coin (BNB):
1. Transaction Fees
If you use the Binance exchange, this will come as the first important use of the Binance Coin. As mentioned earlier, users receive discounts when they pay transaction fees in the platform with the native coin.
Binance Coin can be traded like other cryptocurrencies. It has become an acceptable digital asset in different exchange platforms.
3. Payment Processing
A few merchants have started accepting Binance Coin for payment processing. This is possible with forward-thinking organizations that want to offer more flexibility to their diverse customer base. It is relatively rare.
4. Credit Card Payment
On Crypto.com, it is possible to use BNB as a form of payment for crypto credit card bills.
5. Paying for Travel Arrangements
A few websites have started accepting Binance Coin for booking hotels and flights.
Cryptocurrencies are making headways in entertainment and Binance is one of the forerunners. BNB can be used to buy lottery tickets, pay for virtual gifts, and buy tickets to access entertainment events online or offline.
7. Loans and Transfers
BNB is part of Decentralized Finance, making it useful in all manners of crypto transactions. It can be used as collateral for loans on a few platforms. It can also be used to pay friends and family, and some apps let users split bills using Binance Coin.
If you are still reading, then it is likely that you are interested in investing in Binance Coin. Yes, this is another important use of the coin. Just as you can invest in stocks and ETFs, you can invest in a good number of cryptocurrencies, including Binance Coin.
History Of The Binance Coin
Binance Coin (BNB) was launched by the Binance Decentralized Exchange (DEX) in July 2017. In about four years, a lot has happened.
When it was launched, BNB tokens were distributed to the major stakeholders in the following manner:
- Angel investors – 20 million BNB (10%)
- Founding team – 80 million BNB (40%)
- Public sale – 100 million BNB (50%).
Before the Binance blockchain (Binance Chain) was fully developed, Binance Coin was based on the Ethereum network. During the Initial Coin Offering (ICO), the 100 million BNB were offered to the public at $15 cents per token. This gave the team $15 million, basically in Bitcoin and Ethereum.
A decent percentage of the fund from the ICO (35%) was used to finance the necessary upgrade of the Binance platform and exchange system. 50% was marked for Binance branding, marketing, and education of new innovators. The remaining 15% was reserved for emergencies and unforeseen circumstances.
Binance Coin (BNB) Burning
To control the availability of Binance Coin and prevent inflation, the parent company, Binance, buys back Binance Coins with 20% of its profits and burn them. This burning is done quarterly, and Binance has been consistent.
Due to Binance burning, the BNB in circulation is always lower than the 100 million tokens offered during the ICO. The latest exercise was performed on 15th April 2021, when 1,099,888 BNB was burned, reducing the total supply of the Coin from 170,532,825 to 169,432,937. The burned crypto asset is equivalent to $595,314,380, which is the biggest in the company’s history. Again, this is done to control supply and prevent inflation.
Current Position Of Binance BNB
According to CoinMarketCap, the price of Binance Coin is $514 at the time of writing. This is definitely a long shot from the $0.15 the first investors paid for a token just about five years ago. Clearly, the coin has come a long way.
In terms of market capitalization, Binance Coin is the 3rd biggest cryptocurrency in the world with a current market capitalization of $85 billion. It is considered one of the most important digital assets in the world right now.
Check Out: Could Binance Coin Make Me A Millionaire?
How To Make Money With Binance
Binance Coin is obviously a valuable digital asset – we’ve already discussed its many uses. But how exactly can you make money with Binance?
Well, you can choose to invest in Binance the same way you can invest in Bitcoin and other cryptocurrencies. You can buy Binance Coins when the price is low and sell when it is higher. This can be a short-term approach as well as a long-term approach.
You can buy BNB and keep hold it for several years to see if the coins can appreciate more and yield a significant return. This method is generally referred to as HOLDling – it is a long-term approach.
You can also decide to be attentive to the market, trading Binance Coins regularly depending on market movements. You'll have to buy when the price is low and sell at a higher price to maximize profit. This can be rewarding, but it is riskier and can be time-consuming. It is also important that you choose reputable platforms to invest in Binance BNB or any other digital asset.
Potential Of The Binance Coin
Binance Coin is regarded by industry insiders as a potentially powerful cryptocurrency. Don't get it wrong, BNB is already a powerful digital coin, but there is a big chance that it will become a lot more successful in the future.
Considering the successes that have been recorded by the parent company, Binance Decentralized Exchange (DEX), it is tempting to conclude that Binance Coin is poised to see many more successes. The CEO of the company, Changpeng Zhao is often referred to as the “Zuckerberg” of crypto. The legendary CZ is certainly capable of taking the company and the coin to new heights.
People also believe that the Binance Coin will perform better in the future because of the other projects the parent companies are involved in. These projects include Binance Labs, Binance Info, Binance Research, Binance Academy, Binance Launchpad, Binance Charity Foundation, and Trust Wallet. Binance is definitely a visionary company.
Read Also: Is it Worth Investing in Binance Coin Now?
What Makes Binance Coin A Good Potential Investment
The success of the Binance Ecosystem does not guarantee the success of its various ventures, including the Binance Coin. Here, we will briefly discuss various reasons why Binance Coin can be considered as a good potential investment:
1. Incentive on Binance Exchange
Binance has been the most popular cryptocurrency exchanges in the world for several years. The company has given every cryptocurrency trader and investor reasons to use Binance Coin. As mentioned severally, they offer discounts for using the coin, and this further reduces transaction costs. More cryptocurrency users will start using Binance Coin, and the value will certainly rise further.
2. The Binance Card
There is so much you can do with a crypto debit card, and Binance has introduced a true one. The Binance Card can be used like a normal debit card for all kinds of transactions. This means it is a lot easier to pay for goods and services with your digital assets. Reports have it that the card will be accepted by more than 46 million businesses offline in about 200 regions of the world. The best part of the story is that there is no annual fee for the card. That’s definitely a major revolution.
3. Binance Chain
Binance Coin operated in the Ethereum platform until the launch of the Binance Chain. This is a form of a new blockchain altogether that works with the Binance Decentralized Exchange (DEX) to create an entirely new marketplace for issuing, using, and exchanging digital assets in a decentralized manner.
4. Binance Coin as Collateral
Binance Coin serves as collateral for loans in Kava, a DeFi (Decentralized Finance) platform that offers loan. At the moment, Binance is the only asset that can be used to access loan on the platform, though there are plans to include others. Pending the inclusion of a few other coins, Binance Coin will continue to reap the fruits of this “trust” alone.
5. There Is a Lot to Love about Binance Coin
There are several other things to love about Binance Coin that we can’t discuss or even highlight here. The speed of transactions on Binance is one of these attractions. Binance is also one of the cryptocurrencies that can be used to buy almost every other currency. It is a safe and secure digital asset that is also accepted by a good number of businesses that have little or nothing to do with cryptocurrency (especially in the travel/hospitality sector).
Why Think Twice Before Investing On Binance BNB
From what we’ve discussed so far, it is easy to conclude that Binance is the best investment option for you. Not so fast – there are many things you need to consider before leaping onto the bandwagon. In other words, you need to look carefully before you leap. These are major reasons to think deeper before investing in BNB:
It Is Still a Cryptocurrency and Not Completely Immune to Volatility
It is tempting for investors to start thinking that Binance is a real currency. It is currently acceptable by many websites for transactions involving hospitality/travel and entertainment. Some investment platforms also allow it to be used to buy mainstream securities.
All the advantages of Binance Coin do not make it a fiat currency. It is still a cryptocurrency and can be affected by market factors that apply to other cryptocurrencies. It can still see ecstatic highs followed by terrifying drops like other altcoins.
It Is Strongly Linked To the Parent Company – Binance
Unlike Bitcoin that is completely decentralized without a known founder, Binance Coin has known founders and is strongly linked to the parent company. It is doing so well now because Binance Decentralized Exchange is doing great too. If Binance hits a major bump, Binance Coin will be significantly affected.
Over-Reliance on Binance Can Be an Issue for Investors
Binance Chain is now an alternative blockchain with lots of services other than crypto exchanges and the issuance of digital coin. Binance Coins is now so popular and useful in the cryptocurrency universe that owners can consider it the ultimate digital asset and decide not to diversify. Of course, this can have severe consequences.
An investigation by the Justice Department
According to a Bloomberg report, Binance is under investigation by the Justice Department. The Justice Department and IRS are seeking information about crypto exchange, but they have not accused Binance of any wrongdoing. A probe is not always the best thing for any company, though it appears Binance will not be affected in any major way. An unfavourable outcome, however, can have a meaningful impact on Binance Coin.
Where Will Binance (BNB) Be In Ten Years?
If you bought Binance Coins when it was offered to the public at $0.15 per token, you could have made a lot of money now. For instance, if you invested $1000, you would have gotten 6,666.667 BNB in July 2017. That number is worth about $3,426,666.838 now. That is a massive return on investment.
Binance kicked off strong. Less than six months after its launch, the coin finished the year 2017 at around $8 per coin. That was a spectacular jump from the initial $0.15 per token price. In 2018 and 2019, Binance Coin reached new heights and recorded an impressive price of $38 as can be seen in historical data.
2020 started on a bad note for BNB. In mid-February, it dropped to an abysmal $10 per coin. However, it was able to finish the year at about $38, the same mark it attained the previous year.
Then came 2021, the year of the crypto boom. In May the coin reached its all-time high of $690.
Obviously, Binance must have made several people millionaires. But how much will it be worth in the next ten years?
Trading Beast had predicted some time ago that Binance Coin will reach $625 by December 2022. DigitalCoin is a lot more optimistic, predicting that the coin will be worth at least $649 by the end of 2022. But what can we expect in 2031?
There are strong indications that Binance coin will increase in value over time. Coin Price Forecast strongly believes that the coin can be worth as much as $4,049 by the end of 2031. Cryptocurrency Price Prediction is a lot more optimistic, predicting that Binance Coin will be worth about $21,866 by December 2030. That means it may be a little higher, getting into 2031.
You shouldn’t make investments based on predictions alone. But from all indications, Binance Coin can be an incredible asset in the future. It may reach the heights predicted above and even surpass that. You shouldn’t forget that things can go south and the price of the coin can come crashing. But the chances are minimal.
Should You Play The Long-Term Game With Binance (BNB)?
Judging from what we have covered so far, investing in Binance Coin for the long run sounds like a smart idea. But you must be mindful of the risks involved in cryptocurrencies in general and Binance Coin in particular.
There is a good chance that if you invest in Binance Coin now and leave it for ten years, your investment can bring the sort of return that will turn your life around. You should know, however, that a lot can change before ten years.
You also don’t have to wait for ten years before cashing in on your investment. You can invest in Binance BNB now and cash in on your investment in the next two, three, or five years.
Invest The Smart Way
Investing in Binance Coin can make you rich in ten years, but nothing is certain. Here, we have discussed the coin thoroughly to help you make an informed decision. If after going through the information here you decide to invest, we recommend that you invest through a reliable platform.