How Did BNB Become One of the Most Popular Cryptocurrencies

By Stan Peterson
Published January 3, 2022 Updated January 11, 2022
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How Did BNB Become One of the Most Popular Cryptocurrencies

By Stan Peterson
Published January 3, 2022 Updated January 11, 2022

People often compare BNB to Bitcoin, but there’s no real reason for that. The two cryptocurrencies are entirely different. Binance (BNB’s parent company) launched the cryptocurrency in response to the problems that caused its older brother to crash. It helped make BNB a favorite among investors frustrated by earlier incidents and felt it was safer than even more established cryptocurrencies such as Bitcoin and Ethereum. With low transaction fees and coins that have very few developers investing time in them, they saw an opportunity with this coin. Below is how did BNB become one of the most popular cryptocurrencies.

1. Transaction Fees

People started to notice the low fees associated with Binance Coin, making it easy for beginners to learn about blockchain technology. People who invested in other platforms and used the coins for small transactions were often in charge of exorbitant fees. However, when they looked into Binance Coin, they found that although the coin was younger than others on the market, it had lower transaction fees than most of them.

2. Better Security

The cryptocurrency has demonstrated better security than most other cryptocurrencies on the market. It’s not just the fact that transactions are safe, but that they’re protected from cyber attacks as well. The “Secure Asset Fund for Users” protects against theft and hackers, making it one of the most secure currencies in the world. If hackers successfully steal coins from users’ accounts, they can only be released. When this happens, there will be freezing of all the assets to protect users. There shall be the funds to buy back Binance Coin at market value and be given back to the users for free.

3. Team

The company has an imposing team of professionals who have a lot of experience in the blockchain industry. Many of the same people helped contribute to other successful blockchain projects in the past, which helps give the company a good reputation.

4. Deflation

The cryptocurrency is scheduled for a five-year deflationary period. But there’s no cap on the number of coins that will eventually be issued. During this time, the number of coins will increase by 200 million per year. The more coins that are out there, the more value they have. As a result, people know this and invest in them early on to help them reach their full potential soon after the coin goes public.

5. Speculative Value

The cryptocurrency isn’t that speculative. Its value is much more stable than most of the cryptocurrencies out there. It’s still speculative, but not as much as many other coins can get. It is because there’s no cap on the number of coins that will eventually be in creating.

6. Hype

Binance Coin has certainly been hyped up by its parent company, Binance, but it’s not just a hype stunt like some have believed. It’s an accomplishment by the company. The cryptocurrency is very beneficial to users, but Binance didn’t succeed with its other coins, turning them into new ones.

7. Competing With Ethereum And Bitcoin

The currency competes with Ethereum and Bitcoin because it works. The most popular altcoins on the market are payment tokens, which is not Binance Coin’s purpose. It serves as a native currency that can make trades across all platforms in its network. Competing with the two most popular coins in the market will be a significant accomplishment.

8. Demand

The cryptocurrency has a limited supply, which makes it much more valuable to people who want to use it as something they can buy and sell. As time goes on and the coin gets more popular, the limited supply will only increase demand.

9. Investment Opportunities

Investors see the coin as a good investment opportunity because of its parent company’s success. Because Binance has been so successful in terms of making money from ICOs, trading, and other ventures within blockchain technology, investors know that this cryptocurrency will thrive as well.

10. Only One Exchange

For a cryptocurrency to succeed, it must be widely accepted on exchanges and listed on multiple platforms. Binance Coin is currently only listed on Binance, but the company has plans to make it more prevalent in the future. It will make it easier for more people to trade and make future transactions with the coin.

11. Reputation

The currency itself doesn’t have as much of a reputation as its parent company, but it’s still well-respected in the industry. The company has a good reputation in the market, and the Binance Coin currency gains more respect because of it.

12. Proof-Of-Stake

The cryptocurrency also operates on a proof-of-stake consensus algorithm established because its parent company believes it’s much best staking crypto than proof of work. It’s much more energy-efficient as well. It means fewer costs are associated with mining this currency, making people feel like mining is no longer worth their time and effort.

13. Unbreakable

Cryptocurrencies operate on a network, and if one of the nodes goes offline or is compromised, the network won’t be able to operate properly. However, Binance Coin can still function even if a node goes offline because there’s another node online to take over its responsibilities. It may not function as quickly as before because it has to find a new node already on the system, but it will still work.

14. Scalable

The coin operates on what’s called “sharding. It makes it much faster and more scalable than other cryptocurrencies on the market. It is a huge benefit for future transactions.

15. Binance Chain

In addition to the original blockchain, there’s also a new blockchain called Binance Chain that the company launched to help with even faster and more secure transactions. The new blockchain is in beta but will eventually launch as a fully functional platform for more transactions and greater security.

16. Wallet

Another benefit that comes along with cryptocurrency is a digital wallet that users can use as a way to store their investments. The wallets are completely secure, and there’s no need for an external exchange for users to buy or sell coins. Binance does, however, provide its exchange for buying and selling tokens and other cryptocurrencies.

17. Easily Available

The cryptocurrency was also made very easily available to users once it launched. Many other cryptocurrencies have been slow to make their way toward the market because of issues during the ICO, but Binance Coin has been very smooth. It is one of the reasons it has become so popular among investors.

Conclusion

Overall, Binance Coin is a great cryptocurrency that offers many advantages to users. It’s fast, stable, easy to use, and available to anyone who wants it. It’s also easy to see why so many people are investing in it and why the cryptocurrency will continue to grow in popularity as it gets more acceptance throughout the community. It’s got a lot of potential for the future.

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Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Stan Peterson
786 Articles
Being an active participant in the Blockchain world, I always look forward to engage with opportunities where I could share my love towards digital transformation.

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