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Bitcoin is undeniably the most important, largest, best known and first crypto coin. It is known even to everyone's mother as that magic internet money. Over the years however, a lot of negatives have come to light.
All of these things put Bitcoin in a difficult position and under a lot of pressure. Alternative coins have tried to remedy some of these issues but none of them has the pull to actually be considered a viable candidate to take the crown even in the mid term.
The only other really worthwhile and stable coin is ETH but it has a very different focus in its smart contracts. It's more of a means to pay for services rendered inside its own ecosystem of smart contracts rather than aiming to be the method of payment at your local grocer.
So far, Bitcoin has failed to establish itself as a currency and provide real life applied value.
Now let's consider BNB - Binance coin - for a second.
BNB has none of the issues Bitcoin faces.
BNB does not aim to be a currency in everyday use either, at least not yet but it's a great investment, even and maybe even especially in a bear market - there are still trades being made in a bear market which is why we saw BNB top out considerably later in the last rally.
Now what you see in this chart is a comparison of BTC and BNB. In the first two waves coming up for the top, BNB was still finding its legs. From there on out, BNB clearly outperformed BTC. From the start of wave 3, we see a more stable and more rapid growth on BNB and when BTC topped out on its current ATH, BNB didn't drop as heavily and then even continued to rise and reach a new ATH.
Of course, we see a sharp drop on BNB as well in the May dump when a lot of money left the crypto market. The fee benefit was not enough to outweigh this movement. After that however, the trend continues: better growth and lower downsides.
Long on BNB!
Bitcoin is undeniably the most important, largest, best known and first crypto coin. It is known even to everyone's mother as that magic internet money. Over the years however, a lot of negatives have come to light.
- Scalability: BTC struggles to keep up with the amount of traffic it needs to fulfill all transactions
- Fees: BTC has insane fees at this point, it's just not feasible to pay with BTC for anything other than very large things like cars and houses, the fees make a transaction like that a dumb move.
- Real life usage: BTC has seen some use in countries hit by hyperinflation like Venezuela but still struggles to gain a foothold because of the fee problem.
- Energy usage: In times where everyone tries to use their car less and take care of the environment best they can, BTC uses as much power as a mid sized country to sustain it's growth and keep up with the demand for mining and proof of work.
All of these things put Bitcoin in a difficult position and under a lot of pressure. Alternative coins have tried to remedy some of these issues but none of them has the pull to actually be considered a viable candidate to take the crown even in the mid term.
The only other really worthwhile and stable coin is ETH but it has a very different focus in its smart contracts. It's more of a means to pay for services rendered inside its own ecosystem of smart contracts rather than aiming to be the method of payment at your local grocer.
So far, Bitcoin has failed to establish itself as a currency and provide real life applied value.
Now let's consider BNB - Binance coin - for a second.
BNB has none of the issues Bitcoin faces.
- Scalability: is not an issue since BNB is centralized in a way with dedicated validator nodes mostly provided by Binance.
- Fees: moving BNB is inherently free since it's done on the Binance platform. Transactions inside binance are generally free.
- Real life usage: this is the big one. BNB has real life usage and value. It's being used to pay for trades on binance and has actual tangible value beyond the promise of possibly one day being used for some niche edge case or as a currency in everyday use.
- Energy usage: this isn't a problem either since there is no mining and no proof of work.
BNB does not aim to be a currency in everyday use either, at least not yet but it's a great investment, even and maybe even especially in a bear market - there are still trades being made in a bear market which is why we saw BNB top out considerably later in the last rally.
Now what you see in this chart is a comparison of BTC and BNB. In the first two waves coming up for the top, BNB was still finding its legs. From there on out, BNB clearly outperformed BTC. From the start of wave 3, we see a more stable and more rapid growth on BNB and when BTC topped out on its current ATH, BNB didn't drop as heavily and then even continued to rise and reach a new ATH.
Of course, we see a sharp drop on BNB as well in the May dump when a lot of money left the crypto market. The fee benefit was not enough to outweigh this movement. After that however, the trend continues: better growth and lower downsides.
Long on BNB!
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.