Introduction. Due to the coronavirus, the world has fallen into crisis and life has changed dramatically. In order to save the economy and support the population, central banks have adopted various programs, as a result of which they simply print a lot of money. The signal to stop printing money will be the rise in inflation. In the classical understanding, inflation appears when goods or services are less money, as a result of competition, the price of them rises.
However, this does not happen, people who cannot visit the usual bars, cinema gyms, etc. begin to think about where to attach the money received. Basic insurance in a bank or broker will only reimburse $ 100,000 in case of bankruptcy, which looks like a lot, but for people in developed countries the question is what to do with money when there is more than this amount. As a result of simple thinking, people invest printed money in the stock or cryptocurrency market.
What does this mean for the financial system as a whole? Central banks can print an incredible amount of money, and they will never lead to inflation, because they are all just hiding in a closet (cryptocurrencies). In such a situation, it is worth thinking about yourself, in which crypto asset to invest.
In 2017, there was an incredible hype for Bitcoin and other cryptocurrencies, it would seem that after 3 years the market will be cleared of scam (fraud) and new Google or Amazon of the cryptoindustry will grow, similar to the dot-com boom of the 2000s. But if you look closely, then during these 3 years the use of cryptocurrency has not been found, except for speculation. She is interesting to everyone only in moments of violent growth. Based on this, it is worth investing in cryptocurrency, which will be in the first place, to my surprise after more than 3 years it is still Bitcoin. However, there is an interesting alternative.
Binance Coin . But there is something more interesting in the cryptocurrency market than bitcoin. This is Binance Coin (BNB) – the token of the Binance exchange (Binance.com). Binance has figured out how to use its token to promote its promotion, and at the same time is an excellent advertisement for the exchange.
Binance coin can be used as follows:
1) reduction of commission when trading on Binance;
2) decrease in interest on credit funds in case of margin trading;
3) conversion of crypto dust (trade balances that are no longer possible to use) into BNB;
4) transfer of cryptocurrencies through the BNB network ;
5) increasing the reward (percentage of profit) for the affiliate (referral) program.
The first four points are for active actions, the fifth for holders (long-term investors). All this contributes to the constant demand for the binance token.
Factors affecting the price BNB
1) Interest in the crypto market . The more interest, the greater the growth of bitcoin, and along with it the growth of all cryptocurrencies in general.
2) You need to understand that the larger the trading volume of the Binance exchange , the greater the trading volume of BNB. Therefore, when the commission is paid with BNB tokens, the tokens will be automatically bought off at the current price, which helps to keep the price even in a bear market.
3) The number of Binance tokens is limited to 200 million, while the company spends 20% of the profit to buy back its tokens and destroy them until 100 million remain. This is a deflationary process will continually drive up prices in the long term.
4) In general, the Binance token can be compared with the shares of this company, so a negative background will cause a fall, and a positive additional growth. Binance is currently the best exchange in many ways. It is important to note the number of languages and currencies they support.
The history of the BNB price is certainly impressive in 2018 at the ICO the token was sold at $ 0.1, today it costs $ 300. At the same time, from 2018 to mid-2020, there was not much interest in the crypt. Therefore, it is difficult to predict what heights this token will be able to reach in 10 years.
You can buy BNB token without any problems on the Binance exchange. If you don’t have an account yet, you will get 10% discount for a commission when registering by code UKI0FJD8 or binance.com .
Conclusion. Despite such bright prospects, it is always worth remembering that cryptocurrency can be easily prohibited by laws or unforeseen legal proceedings can occur with the exchange, which will depreciate or reduce the value of assets.