10分鐘了解BNB：最硬的山寨幣

Hello everyone, I'm Terry Today I'm going to share with you the BNB coin that is issued by the BNB exchange Now it is the original currency on the BNB chain What is the reason that can make this coin 6 times more in this round of bull market? What is the difference between BNB and other exchange issued coins? Why can they have such a market value? Become the world's fourth largest currency And a few weeks ago, it exceeded XRP and USDT again. Okay, before the video starts, I want to say first The purpose of this video is definitely not to promote BNB Or to recommend you to buy BNB

If you have watched my previous videos, you should know that I don't have many BNBs. But because someone shared it on the internet, plus the platform currency itself, few people talk about it. Because everyone is generally aware of the platform currency, it is an extremely centralized currency. But BNB is actually a complete ecosystem, plus it is indeed quite strong, especially the performance of this round of牛市. So I think I can make this video to let everyone understand what is BNB and the logic behind it.

Ok, let's talk about BNB. Of course, we have to go back to the time when BNB was first established in 2017. At that time, CZ launched BNB in order to raise funds to create a trading agency. BNB was launched in the form of ERC20 currency on Ethereum blockchain. At that time, BNB was just established and there was no current BNB chain. So CZ chose to use the most mature and most convenient Ethereum token to launch BNB. At that time, CZ launched 200 million BNBs in ICO.

and successfully helped BNB raise $15 million in initial funding. The launch price of BNB was $0.11 billion, which is about 10,000 times the current market value of BNB. The main purpose of the launch of BNB was to allow BNB users to use BNB to pay transaction fees and get a discount, and there was no other function.

Then, as the BNB became the world's largest exchange, BNB was upgraded in 2019. They moved BNB from Ethereum to the blockchain they support called BNB. On Binance Chain

From this time, BNB is no longer a loan on Ethereum, but a raw material for the entire public chain, which can be used to pay for the network's payment. Those who are a generation older than you should know that in 2020, the entire DeFi ecosystem was in a great crisis. At that time, Ethereum was around $200-$300, and it rose to more than $4,000, or even $5,000. But because of this, everyone began to realize that Ethereum

At that time, due to high transaction fees and the problem of network poisoning, many projects began to look for other public chains to distribute. I remember when I was converting Ethereum, I once paid 894U Ethereum gas fee, so I basically couldn't use it at that time. BNB Chain seized this opportunity at that time. In September 2020, they launched a BN smart chain parallel to BN chain, Binance Smart Chain, which is the current BNB smart chain. BNB Smart Chain, abbreviated as BSC.

The feature of BSC is that it is compatible with Ethereum's virtual machine. It is designed to allow developers to easily move the application program on Ethereum to BSC. Then you can enjoy faster transaction speed and lower transaction costs. So after BNB, it is not only the currency of the security chain,

It also became the core of the BSC ecosystem. It can be used to pay gas fee, participate in the pressure, and can also be used in various decentralized applications . I know what I just said may sound very reasonable, but for newbies in the coin circle, it may be that you don't understand. I will use the simplest way to compare.

You can imagine B&B as a large-scale mall. At the beginning, they issued B&B mainly as a discount coupon. You buy things in the mall and use B&B to make a discount. Later, the mall became bigger and bigger. Then CZ wanted to say, "Why do I have to use someone else's payment system?" That is, Ethereum. Then every time the customer pays, we have to pay them the gas fee. Why don't we support a core supply chain with B&B? Then the business developed next to the mall.

a whole technology zone, which is what I just said, the security intelligence chain, BSC. There are game companies, financial companies, NFT studios, and all kinds of applications can be imported. Then these companies have to operate, transfer, and pay salaries in this zone. It's all paid by BNB. That's about the concept. That's what I just said at the beginning. BNB is now a complete ecosystem. It's like fuel for the entire city to run. It can be used to pay for the usage fee.

gas fee, investment projects, paper pressure, staking, payment for service fees, and purchase of virtual assets. In the ecosystem of BNB, it is a currency for circulation. The current BNB has more than 137 million units, which is less than the 200 million units that were issued at the beginning. What is the reason? Here we can talk about what is the disbursement mechanism of platform currency.

Generally speaking, the more valuable exchanges in the market now have the so-called "destruction mechanism" Its purpose is also very simple, which is to increase the value of platform currency. BNB wants to make this ecological chain more and more valuable, so everyone wants to join the BNB technology circle. So they also introduced a very unique destruction mechanism. Simply put, they will regularly

and will be destroyed forever, making the total amount of the market and the total circulation less and less. This is very different from the legal currency we use now. The governments all over the world are constantly printing legal currency, so the dollars, RMB or Taiwan dollars we hold in our hands are depreciating every day because their circulation is increasing. But because of Web3, we can reduce the waste of politics and corruption to the lowest,

and there is no social welfare at all. So the assets on this ecological chain can be made to make money and also to be destroyed at a reasonable rate to make this platform currency more and more valuable. In fact, you can also imagine it as a company. Every time they make a sum of money, they will take part of it to buy back the stock. Then the stock that is bought back is burned. It is the same concept. As Bi An mentioned in the white paper at the beginning, they will continue to destroy BNB until the last 200 million pieces fall to the remaining 100 million pieces.

At first, BNB used 20% of the profit per quarter to buy and sell BNB. Later in 2021, this mechanism was upgraded to become an automatic selling mechanism. BNB Foundation will calculate the amount of blockchain produced in the quarter according to the price of BNB, which is the activity of the entire ecosystem.

The advantage of this is that it is transparent Anyone can find the record of this destruction on the chain No need to rely on the trust platform to say what they did And BNB Chain has another small mechanism Called real-time burn That is to say, every time someone uses BNB to pay gas fee on BNB The system will automatically destroy part of the procedure fee So that's why we see today The price of BNB is constantly rising If the demand continues to grow and the supply is reduced Then the price will naturally be pushed up

The BNB chain that we are seeing now is currently the third largest in the world, only in Thailand and Solana. In addition, BNB holders have three ways of rewarding: LaunchPool, MegaDrop, and Holder. Simply put, users can hold BNB and obtain new currency by storing assets.

On the other hand, in addition to the rapid development of the BNB ecosystem, the key factors that promote BNB growth this year are also the use of institutions. For example, we can see that Wall Street investors have bought a large number of BTC ETFs, and DAT companies such as Stratagic and Bitmine have promoted the corresponding asset growth.

BNB is also being invested in various listed companies and large institutions. Even some Central Asian countries have announced that they will invest BNB into their strategic reserves. These developments have also become the key drivers of BNB's performance this year.

Okay, let's talk about the risks of investing in BNB. The first one is the risk of supervision. After all, BNB is the world's largest exchange. Now, governments from all over the world are starting to strengthen supervision and compliance. The first step they take is usually from the largest exchange. Of course, the relationship between BNB and governments from all over the world is quite good.

For example, the US government fined BNB and then CZ went to jail. But a few days ago, CZ received the complete unconditional feature of Trump. So it does not rule out the pressure of other countries to implement this contract with BNB. These may affect the fluctuation of BNB prices. In fact, now investing in BNB is equivalent to investing directly in BNB.

Because BM is not a traditional listed company I believe they also have the resources to go through a complete listing process But it's not necessary at all The second biggest risk is the risk of potential centralization

After all, the ecosystem of BNB is closely related to the security of the currency. The discussion on its operation is still in the middle. I think the biggest risk is of course the high-relatedness of the security exchange. All the positive news about the security exchange will of course help the currency price. But on the contrary, the negative news will also affect the currency price. Then the currency of BNB is also fluctuating very high. Whether in Bear or in the bull market, its fluctuation is very, very high. So be very careful.

OK, let's summarize. The value of the BNB token basically represents the entire market's expectation for the B&B exchange and the BNB ecosystem. It is difficult to use a traditional listed company's valuation model to infer the reasonable price of BNB. Currently, the market value of BNB is about $13 billion.

The market value of this kind of stock is similar to that of Spotify. However, BNB does not have cash flow and no predictable revenue. Its price mainly comes from the use of BNB and the destruction mechanism of BN. Finally, the market's predisposition. This is why many traditional financial investors will not touch platform currency at all.

Because there are too many uncertainties and the risk of centralization. Okay, the above content I hope will make you more familiar with BNB And the whole history and the reason for its growth As for whether you want to invest, that's your personal choice. Investing or not has nothing to do with me I'm just sharing information here. Finally, if you want to invest in encrypted currency I am more often using BNB after all they are the world's largest exchange I think it's better for the security of assets and the security of users.

I have participated in many B&A's before I think they are a company that is working hard B&A has recently released a new way to enter Taiwan and other regions users can use online money to enter directly with USD I have also written a article about this part on my website I will put the link in the information section below the video You can go and see it yourself OK, see you next time