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Here’s Why Binance Coin (BNB) Could Be A Top Three Coin Within Three Years

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An exchange issuing its own cryptocurrency seems a little bit strange at first glance. Binance has done just that, however, and over the last month or so the coin has caught fire. At the time of writing (early morning ET), Binance Coin (BNB) goes for $8.33, having traded as low as $0.70 a piece back at the start of the final quarter of this year.

From the start of the quarter lows to highs recorded last week just shy of $11 a piece, this one gained closed to 1500%.

BNB Daily Chart

BNB Daily Chart

Sometimes, the logic behind a long-term thesis on these sorts of young, relatively low market cap cryptocurrencies can be a bit murky. They are reliant on companies developing technologies that are experimental at best and, beyond that, the technologies finding (and successfully growing into) its target marketplace.

None of this is true of Binance Coin.

This is one of the clearest and simplest long-term strength arguments we’ve seen in the sector to date and – as such – we don’t expect this one to hang around at current levels, even given the gains outlined above, for long.

How can we be so confident?

Well, Binance (as many reading will already be aware) is one of the most popular cryptocurrency exchanges in the world. As of today, it’s got more than 3 million registered users and it’s built a reputation for being one of the most secure, reputable and user-centric exchanges on the market. To put this another way, if there’s an exchange out there right now that we would expect to be one of the, if not the, fastest growing exchange over the next five years, it’s Binance.

And where does Binace Coin come in to all this?

The coin was issued earlier this year for one (primary) purpose – to allow Binance users to pay fees in a native cryptocurrency, as opposed to using something like BTC or fiat. And why would users want to pay in BNB as opposed to BTC? Because Binance offers a discount (and a steep one, at that) for any user that covers their trading and platform fees with its native coin.

Specifically, when a user pays fees in BNB, they receive a 50% discount on fees for the first year of fee payment. This then reduces to a 25%, a 125.5% and a 6.75% discount for the second, third and fourth years respectively.

And here are the economics of our prediction:

  • Assumption one: as Binance increases in popularity, more and more users are going to want to pay fees in BNB so as to reduce the costs associated with their trading.
  • Assumption two: in order to pay fees in BNB, users have to buy BNB.
  • Assumption three: an increased demand for BNB that arises on the back of Assumption one and Assumption two, as outlined above, will push up the price of the token.

It’s really that simple.

Combine this with the fact that the company is buying back tokens and burning them every quarter and we get a reducing supply input to turbocharge the above-discussed set of assumptions.

The company also has plans to build a decentralized version of its current platform, as part of which BNB will be used as one of the key base assets as well as gas to be spent.

So, really, the only way that this coin isn’t going to increase in value is if Binance goes under. This is cryptocurrency, so that’s not a risk we can take lightly, but as far as risk reward profiles go in this sector right now, that which Binance Coin (BNB) offers is one of the most solid we’ve seen.

We will be updating our subscribers as soon as we know more. For the latest on BNB, sign up below!

Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.


Image courtesy of Binance

Altcoins

Cryptocurrency Collateralized Debt Positions Are Growing in Popularity

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While Bitcoin (BTC) continues to hover around the magical 10,000 price level, altcoins continue to fight an uphill battle.  Simply put, hopes of a future bull run continue to diminish as Bitcoin maintains its dominance.  One school of thought is that a few altcoins will survive and flourish, but which ones are anyone’s guess.  That being said, it’s hard to go wrong picking against the top coins like Ethereum (ETH), Ripple (XRP), Litecoin (LTC), and EOS.  These projects have managed to find a foothold in the market and have a better chance than most of staying there.  While traders wait for their positions to increase in value, one opportunity that may be worth looking at is initiating a collateralized debt position.

What is a Cryptocurrency CDP?

In traditional terms, a CDP is essentially putting up collateral in order to receive a loan against the deposited amount.  There are several examples of this in our day to day lives.  Auto title loans from large companies like TitleMax are extremely popular with consumers.  Consumers are essentially able to use their car as collateral in exchange for a cash payment which can then be used for whatever needs the consumer has.  The consumer can continue using their car as long as debt payments are made.

The same concept applies to cryptocurrency CDPs.  Consumers are able to put up crypto tokens, such as…

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Altcoins

Hodium Presents a Compelling Opportunity for Outsized Investment Returns

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Hodium
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I’m sure all of us remember the cryptocurrency glory days of 2017 and early 2018.  It was one of the biggest bull runs in history and created incredibly wealth for quite a few early entrants.  Unfortunately, for most of us, those gains have most likely been wiped out during the altcoin apocalypse.  The truth is that traders probably thought a bit too highly of their trading abilities when the reality was that anyone could have thrown a dart at a board and ended up making money.

As markets mature (and the crypto market is definitely maturing) it becomes more and more difficult to generate alpha.  In that regard, it’s similar to traditional financial markets.  I can remember trading during my high school days.  It was the late 90s and right in the middle of the dot.com boom.  Eventually, however, the euphoria fades away and reality hits hard.  Now, it’s become rather difficult to actually trade profitably which has given way to the rise of hedge funds.

Hedge funds are investment funds that pool capital from accredited and/or institutional investors and invest in a variety of assets, often with extremely complex portfolio-construction and risk management techniques.  The professionals employed by hedge funds are the best of the best and have spent years honing their craft.  That is why they’re able to make the millions of dollars that they normally…

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Bitcoin

Behold The Cryptopreneurs – Overcoming The Obstacles Facing The Blockchain Industry

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Integrating blockchain technology is fast becoming a necessity for enterprise ventures and small or large businesses, but with a growing number of choices in the tech revolution, it’s difficult to pick a direction without feeling overwhelmed or taken advantage of. This is where BEHOLD THE CRYPTOPRENEURS comes in.

Private keys, the myth of anonymity, and the battle against anarchist ideology are only a few of the difficult challenges faced by businesses that want to incorporate blockchain into their culture. Author Dennis H. Lewis guides the reader through those challenges and helps them discover the true potential of investing in this new economic paradigm.

Every business has pain points that must be overcome in order to branch out and thrive in an ever-changing commercial environment. Blockchain has real world solutions and cryptopreneurs are not limited to the cryptocurrencies they invest in but rather how they seize economic and technological opportunities to make it work for them.

Innovation, trust, and solutions can differentiate your business from all the noise, but without a solid marketing plan, a cryptopreneur can have the best idea and never get far. Remember: a million great ideas times zero market presence equals zero success.

Investors want to know there is public interest and enthusiasm in a project before they commit any money to it. As a cryptopreneur, you are tasked with generating that interest from the…

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