As the cryptocurrency markets start to gain momentum, investors are wondering about the best investment opportunities. Although there are hundreds of thousands of tokens available on exchanges, the top 5 cryptos never fail to impress.
This article will compare BNB versus BTC, two decidedly different cryptocurrencies, both hugely popular within the crypto community. The goal is to provide you with the fundamental information that will allow you to assess the inherent value of these digital currencies. To top things off, we will visit some price predictions from reputable sources to further solidify our findings.
All About Binance Coin
Binance coin is the main cryptocurrency of the Binance exchange, smart chain, and entire ecosystem of dApps. The coin emerged on the markets through an ICO in 2017 and raised $15 million for the Binance exchange.
At the time, the company put 100 million BNB coins on sale for $0.15 per token, allowing users to purchase around 2,700 BNB for 1 ETH. The proceeds of the sale served as the initial funding for the Binance exchange.
BNB as a Utility Coin
Initially, the BNB token had a single use case. Users could hold BNB to get rebates on trading fees on the exchange. However, as the exchange grew, so did the utilities of the BNB coin.
Soon enough, Binance allowed users to stake their BNB on the exchange to earn yields.
After the release of Binance pay, BNB holders were able to access a vast array of merchants accepting the asset, such as Travala.
Binance Smart Chain
The BNB token migrated from an ERC20 token on Ethereum to its native chain in 2019. This first migration allowed BNB holders to use their tokens as gas on this new chain that had limited utility.
However, in 2020, Binance launched its custom smart contract chain, the Binance Smart Chain (BSC), which has since been renamed to BNB Chain. At this point, BNB coins gained a vast number of new use cases. In addition to becoming a gas token, the chain successfully hosted hundreds of decentralized applications.
The BNB Chain has since become a staple of the DeFi industry, with dozens of highly successful decentralized exchanges and lending protocols. One of the reasons for success is that DEXes on the BNB chain offer exotic token trades like TLM to WAX. The BNB token is pivotal to these financial protocols and remains one of the most used cryptocurrencies to date.
In addition to its centralized exchange and decentralized DeFi networks, Binance has been growing its ecosystem in other ways. One of the most praised additions to this ecosystem is the Binance Launchpad.
This platform allows projects to access a streamlined process of funding their development and listing their token on the exchange. It has allowed countless Web3 ventures to succeed in the highly competitive crypto industry.
BNB Price Prediction
Currently trading at around $225, there’s a lot of leeway to the upside for BNB. Priceprediction.net confirms this sentiment with their prediction of $463.99 per token for 2024.
Digitalcoinprice.com has a similar view, with a price of $576.87 for the same period.
All About Bitcoin
Bitcoin is the first cryptocurrency to gain mainstream traction, and many consider it as a revolution in the financial world. Satoshi Nakamoto created BTC in 2008 to provide humanity with a new form of decentralized, digital money without intermediaries.
What Is Digital Gold?
The bulk of the crypto community refers to Bitcoin as “digital gold.” The reason behind this is that BTC is highly deflationary. First, it has a capped maximum supply of 21 million coins, of which 19.5 million are already in circulation.
Furthermore, every four years, the rewards for mining Bitcoin are cut in half, allowing for a predictable, deflationary issuance schedule. This has allowed Bitcoin to become one of the most praised store-of-value assets on the globe.
Network Security Aspects
Considering Bitcoin is the earliest cryptocurrency, it has amassed a large number of users and miners. It has the most decentralized network of all cryptocurrencies, ensuring that there’s no single point of failure.
BTC Price Forecast
Currently trading at $34,400, Bitcoin is still way down from its $69,000 all-time high. Henceforth, Priceprediction.net provides a forecast of $55,310 for 2024. Their colleagues at digitalcoinprice.com offer a target of $88,674.
BNB vs BTC: What to Expect?
In a prospective bullish cycle, both BTC and BNB should achieve new all-time highs. However, if we trust history to repeat itself, Bitcoin usually spearheads the industry and will be the first to make significant gains.