Binance Coin: You Better Hodl Fast
Binance.com is one of the largest cryptocurrency exchanges by volume. Binance launched its blockchain Binance Coin (BNB) back in July of 2017. It seems to be going well for the platform as BNB is already the 7th largest cryptocurrency by market capitalization.
As you may have already guessed, the name “Binance” is a combination of Binary and Finance.
HODL (Hold on for Dear Life)
Sometime back in 2013 the term “hodl” was introduced. One story I heard about the etymology of the word was it was a misspelling of “hold” and then became a sort of acronym meaning “Hold On for Dear Life”. Which is in reference to the violent downswings (and upswings) cryptocurrencies can experience and that one should hold (or “hodl”) through these periods.
BNB coin started out as a way to pay for trading fees. Binance would reduce the trading fees, if they were paid in BNB. I actually owned some BNB fairly early on (as in a couple years ago) simply for this reason.
I wish I’d hodl’d my BNB! Although I had no way of knowing it would go up 27,334% percent.
I’m of the old-fashioned belief that a cryptocurrency needs to have some sort of non-speculative use. The value of bitcoin can’t just be (long term) a speculative vehicle. Things eventually return to their non-monetary use value.
That is one of the reasons I like BNB: it has quite a variety of non-speculative uses such as: reducing trading fees on Binance (currently up to 25%) and for posting as collateral for loans. There are many other uses listed on binance.com.
I heard (although I can’t cite this) that BNB is going to be used for a distributed exchange at some point.
Imagine Reducing the Currency Supply!
Another reason to like BNB is that they are planning on burning up to 50% of the supply (the exact opposite of price inflation!). So that eventually there will only be 100 million BNB in circulation.
So if you want to speculate on cryptocurrencies, you might want to buy some BNB. But if you do, you better hodl fast.