Before engaging in a heated debate on Binance coin vs bitcoin, you need to carefully gauge the pros and cons of both. But if you are new to the cryptocurrency game, you are probably feeling a little confused at the moment. In fact, most of us were confused too when we first started our investment journey with cryptocurrency.
So don’t you worry because we are right here to guide you through this maze of confusion? In fact, once you are done reading this article, not investing in crypto might be too difficult to resist for you. Let’s not just waste any more time and closely introspect more about both Binance coins as well as Bitcoins.
Keep reading to find out more on the same.
What Are Binance Coins? What Are Bitcoins?
Before jumping straight into exploring Binance coin vs bitcoin and related themes, it is best to understand what the two concepts individually mean. So scroll down and check it out now!
What Are Binance Coins?
Issued by none other than Binance trades and exchanges, the Binance coin is a type of cryptocurrency which comes with a BNB symbol. Since June 2021, the Binance Exchange has been viewed as one of the largest crypto exchanges in the whole world, one that also happens to support transactions worth 1.4 million or more per second.
The essential points related to Binance coins that you need to keep in mind are as follows,
- Issued by none other than Binance trades and exchanges, the Binance coin is a type of cryptocurrency which comes with a BNB symbol.
- Initially, the Binance coins were using the Ethereum network, but that’s a thing of the past. In fact, currently, the same has evolved to be a native currency of Binance Chain, the actual blockchain of Binance.
- Every financial quarter, Binance simply uses 1/5th of the profits made for first repurchasing and then permanently burning or destroying coins held in the treasury.
- In 2017, the cryptocurrency was created mostly to be used as a utility token, primarily for discounted fees on trading. Today, its uses have naturally expanded to several applications, like payment of transaction fees, online services, travel bookings, entertainment, and financial services.
What Are Bitcoins?
Created in 2009, Bitcoins are a type of decentralized digital cryptocurrency that simply follows ideas which are set out in white papers by the pseudonymous and mysterious Satoshi Nakamoto. In case you didn’t know the people responsible for creating Bitcoins, let us tell you even we don’t know!
Bitcoins are one such cryptocurrency that promises relatively low transaction fees as compared to traditional mechanisms of online payment. Moreover, it is not technically issued by the Government and, to make things better, operated by some mysterious decentralized authority. The currency also has enhanced security because it utilizes cryptography for the same.
The essential points related to Bitcoins that you need to keep in mind are as follows,
- Bitcoins were initially launched sometime in 2009. Since its launch, the cryptocurrency has grown to become the largest globally on the basis of market capitalization.
- Bitcoins are very different from fiat currency. This is because bitcoins use a blockchain which is basically a ledger system that has been decentralized for creating, distributing, trading, and even storage.
- When you look at it, Bitcoin’s history in terms of storage value has technically been pretty turbulent. In this relatively short timespan, the cryptocurrency has witnessed various periods of boom and fall.
- As one of the earliest digital currencies that has experienced widespread success and popularity, Bitcoins have opened the road for other cryptocurrencies to follow.
Binance Coin Vs Bitcoin: Pros And Cons
Now that you have a fair idea about both Binance and Bitcoins let’s explore the Binance coin vs bitcoin in some detail. But how could you figure out which one is a better investment alternative? The best way to go about this is by finding out the pros and cons of the same.
Thus, scroll down and find out the pros and cons before deciding the verdict on the bitcoin vs Binance coin.
Binance Coins: Pros
The advantages of investing in Binance coins are as follows,
- Considered as perhaps the best tokens for utility in 2022, Binance coins can not just be utilized for trading and paying fees on Binance exchange but also, at the same time, the same can be utilized beyond the basic Binance ecosystem. For instance, there are several online services that allow users to split the bill with BNB tokens.
- To ensure both stability and growth, the Binance ecosystem runs on a policy of burning BNB tokens. Now, this deflationary process might naturally lead to an increase in prices over a period of time which can also help fellow investors make all kinds of price speculations.
- Another advantage of BNB tokens is that investors receive several discounts while paying fees for the exchange. Naturally, most users view this feature as an incentive. Moreover, incentives like this are probably the smartest method to create an online community with guaranteed growth.
- It is already pretty well known that Binance technically provides the benefit of fast transactions and, at the same time, also offers the lowest fee of transaction in the entire cryptocurrency – a mere 0.1% fee for traders.
Binance Coins: Cons
The disadvantages of investing in Binance coins are as follows,
- Understand that Binance coins are not decentralized. Rather, since Binance is basically a company aiming to make a lot of money from Crypto. As a result, the Binance ecosystem is heavily centralized.
- There have been global concerns about how regulators will eventually try to squash Binance. In several countries across the world like Thailand, Japan, Malta, the United Kingdom, Germany, and the Canadian province of Ontario.
- The Binance ecosystem is a soft target for people specializing in cyber attacks. In fact, an unsuccessful attempt was even made for both overwhelming and attacking the system, leading to the hacker bounty program by Binance.
Now that you know the pros and cons of investing in Binance tokens, you need to know the same about bitcoins to reach a logical verdict in the case of the Binance coin vs bitcoin debate.
The advantages of investing in Bitcoins are as follows,
- One of the biggest benefits of investing in Bitcoins is accessibility and versatility. Since it only takes a while for transferring the same between two users, it can be easily utilized for buying both goods as well as services from so many places.
- Bitcoin users can be identified with the help of numerical codes and several public keys. This can easily ensure that all the transactions can not really be traced back to any user. Although transactions can be viewed at all times, these are mostly kept safe and secure from all kinds of frauds because of the basic blockchain technology.
- The fact that Bitcoins are decentralized basically means the currency does not fall under the authority of some central bank or even the government, for that matter. Moreover, there is no logical way of implementing taxation on bitcoins.
The disadvantages of investing in Bitcoins are as follows,
- One of the biggest disadvantages of bitcoin is its sheer volatility. The reason why these are considered so valuable is that they are scarce. Now scarcity makes these valuable and, at the same time, causes fluctuations in the price. The pricing varies, and it creates a certain amount of volatility.
- Although more and more companies are accepting payment via bitcoins, like Subway and Microsoft, it is still not being accepted properly. This literally limits your payment amount, unlike paying via debit or credit cards.
- Since transactions related to Bitcoins are unregulated and anonymous, a lack of safety and security is a primary disadvantage for the same. In fact, since any transaction made through the use of bitcoins are usually final and irreversible, nothing literally can be done in case of money is transferred to the wrong person or the amount transferred is wrong.
Thus, you can take a call on the while Binance coins vs bitcoin debate!
Frequently Asked Questions:
The best cryptocurrencies to invest in 2022 are as follows,
➼ Binance Coin, and
Dogecoin is the cryptocurrency that is expected to explode in 2022. Since last year, the same has been garnering attention and is now expected to explode this year.
The best cryptocurrency for investment purposes in 2021 are as follows,
➼ Binance Coin, and
➼ U.S. Dollar Coin.
Verdict On Binance Coins Vs Bitcoins: Investments Are Always Volatile
After closely analyzing the pros and cons of the whole Binance coin vs bitcoin cash, one thing has become obviously clear investing in cryptocurrencies has a lot of volatility. Things can change overnight – sometimes for good, and sometimes only for the bad. The best way to go about this is by keeping up with the market.
Don’t forget to let us know in the comments below your thoughts on the same.