The reason behind the success of Binance Coin and the Bitcoin market


The base currency of the world's largest cryptocurrency exchange has returned to its previous historical maximum, while other currencies remain 80-90% lower. The BNB token quickly increased and held the seventh line in the cryptocurrency rankings in terms of market capitalization.

While no one knows for sure why Binance Coin works so well, there are a number of factors that certainly have a positive effect.

Binance burns BNB tokens every quarter

Every quarter, Binance burns 20% of BNB, which the exchange collects as commissions from the platform. This removes them from circulation forever. Binance will continue to burn Binance money until it reaches the 100 million coin threshold.

The token burning, as a rule, has a certain influence on the currency. With the decrease in the circulation of supply, the balance of supply and demand changes. Supply decreased and maintained continuous demand, pushing prices higher.

Money burning also has a positive psychological impact on the market. However, in a reasonable world, this effect is minimal. Exchange withdraws from circulation only 1-2% of the Binance Coin issue, but the price does not show a larger increase immediately after burning. To feel real changes in the rational world, it will take more time and changes in proposals on a much larger scale.

What does this mean for the Bitcoin market
Craig Wright has previously stated that turning such a bit of bitcoin into Kleiman real estate will have some devastating consequences, and one of them is that the price will rise.

In a recent interview with Modern Consensus, Wright explained that Florida law requires a 40% tax on those assets. Because the Kleiman real estate is unlikely to have $ 2 billion in cash to pay taxes, some acquired digital assets would have to be sold and sold such a significant amount of bitcoin would saturate the market and causing the price to fall.

It is worth noting that the bitcoin market is very volatile and easily manipulated, but difficult figures show how much BTC is required to manipulate the market is hard to achieve. Some estimates suggest that it requires at least $ 30 million in bitcoin.

If it had any consolation, Wright said that he had no intention of manipulating the bitcoin market. Away from the stories of doom and gloom, there are two possible outcomes if Kleiman real estate is given bitcoin and is forced to pay taxes.

The market as a whole will remain unaffected if the sale of BTC is made via OTC exchanges. Such platforms allow individual buyers and sellers to skip cryptocurrency exchanges when buying or selling large amounts of bitcoin and then avoiding market movement.

On the other hand, if real estate decides to pour the money into an exchange, a significant discount will occur.

BNB now has practical utility

Binance Coin has technically had some utility before. With the token, you can pay for cryptocurrency trading and Binance commissions for discounts, as well as earn rewards on a number of different platforms. However, in the above functions, the Binance Coin coin is not unique.

The practical usefulness of Binance Coin has appeared with the launch of the Binance Chain and will continue with the next launch of the respective decentralized exchange (DEX). The Binance chain was launched on April 18. On April 23, the Binance team moved BNB from the ERC20 token to its own token in the new chain.

Binance Coin will then be used to pay for each online money transfer. Judging by the current Binance volume, this change will lead to a significant increase in demand for BNB.

But why now?

Binance Chain's announcement is not new. The company announced its plans in March 2018. But now the group has produced something tangible. By the end of February this year, they had launched the test network Binance Chain. After news of the launch of the testnet, and later the mainnet, the price of BNB doubled.

Binance price spiked after its release

Binance's reputation is ahead. Perhaps the most influential (but difficult to measure) factor is Binance's excellent reputation in the cryptocurrency community. Since speculation is considered a healthy part of investing in cryptocurrencies, sometimes irrelevant determinants can change the price of the token.

Binance is often the first step that investors take on altcoins. Therefore, it is reasonable for Binance Coin to be one of the first altcoins that investors want to buy.

Changpeng Zhao (CZ), CEO of Binance, is a well-known figure in the cryptocurrency space with a large number of Twitter followers. Many praised him as an example of how to properly manage cryptocurrency exchanges. Many people think that Changpeng Zhao may be more generous. In any case, only his presence continued to draw attention to the native coin base.

According to court documents, the plaintiff was forced to restart the proceedings. Real Estate Dave Dave is currently looking for the deposits of James Wilson, an Australian who used to be CFO at Craig's companies, from 2012 to 2013, when Dave was alive.

Moving forward, James Wilson's testimony, will result in determining the truth behind the ownership of bitcoin that Wright was charged with hoarding.

The more investors learn about tokens, the more opportunities there are to develop in the right direction. Lastly, many years of positive experience using the Binance platform gives confidence to the BNB base token. Most people have very little opinion about the operation of an exchange.

The future of Binance Coin
There are lots of risks when investing in BNB, because in Binance Coin there is still not enough real usefulness. Coin does not provide an opportunity to use in smart contracts, so actual Binance-based DApp applications are not being used.

Add to that the weak security potential of money. The company behind the exchange has faced a number of legal issues, forcing them to move to another country. Future legal issues could cause prices to plummet if they are serious enough.

As with any investment, especially cryptocurrencies, it is important to conduct your own research and keep track of any new findings. While Binance Coin sounds like a great investment opportunity today, anything can happen tomorrow.

It seems the Satoshi Nakamoto story will continue next year. According to the latest information, Bitcoin SV founder Craig Wright has refused to pay Kleiman Estate a payment of 500,000 Bitcoin (4.5 billion USD).

The property, represented by Ira Kleiman on behalf of Dave Kleiman, is reported to have signed a non-binding agreement with blockchain scientist in September to resolve the case out of court. Wright allegedly implied that he had the means to pay this money, but on October 30, he broke the deal. Craig claimed that he lacked the funds to fund the settlement.

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