Crypto Academy Week 9 - Homework Post for @yohan2on

Altcoin refers to all digital currencies launched after the success of Bitcoin so that is how it got the name Altcoin which means alternative to Bitcoin. There are over 900 Altcoin currencies in existence since the creation of bitcoin and the first altcoin was namecoin, several types of coins have been developed and some of them are: name coin, litecoin, dogecoin, tron, lumen, ethereum, ripple, bnb, etc but I will be focusing on the binance coin.

Binance Coin,

Binance coin is a popular cryptocurrency created by the famous Binance exchange. Binance coin also referred to as BNB tokens is a virtual currency that can be used to transact, make payment for fees and also trade different cryptocurrency on the binance platfrom cryptocurrency exchange like bitcoin, ethereum, litecoin, tron, etc. It is a form of crypto currency that can be used as a means of exchange in a transaction. Binance coin is the ninth largest digital currency in the world, it was developed by a Chinese man known as changpeng zhao who created this token to offer solutions to the numerous issues associated with the cryptocurrency trading structure.

The BNB tokens were first created as ethereum based which was referred to as ERC-20 token. Binance coin used this token before they it was moved to it own customized blockchain known as binance chain. Binance coin was founded in 2017 and around 200 million tokens were produced which was distributed to different investors. 100 million BNB token was given out for public sales which is like 50% of the total tokens and the token founding members were given 80 million tokens while the private investors were given the remaining 20 million tokens.Binance exchange were able to sell all the 100 million token offeref to the public and it was sold at $0.15 each so they were able to raise $15 million and this fund was used for the development of binance coin. Over the years, There has been a tremendous growth in the price of binance coin, in 2018 it was sold for $8 to $10, in 2019 it witnessed 40% growth and it was sold for $15-$20 also last year which was 2020 there was an improvement in the price and it was sold for $30 to $40 but in currently that is in 2021, bnb tokens price have gone up by 300% the price of binance coin is now very high and its been sold for $500 to $650 and there are 154 million BNB tokens in circulation today.

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Binance coin is very important when it comes to cryptocurrency because it is the third largest cryptocurrency base on market cap, its only behind bitcoin and ethereum.

There are many advantages associated with the use of binance coin and some of the benefits are:

Investment opportunities:

crypto currency expert predicted that the price of binance coin will continue going higher from continously although there might be a little fall in the chart but the price will surely rise majorly because of it relative stability. Also the market cap of binance coin has increased alot of the recent year and it is worth over $51 billion currently and it is one best utility token which has more advantages over other digital currency. It is reasonable to invest in binance coin by purchasing it and watch it grow over time although, it is volatile.

Medium of exchange:

BNB tokens can be used as an alternative to fiat money, there are lots of company that accept binance as a means of payment for goods bought or service rendered. You can just pay easily and directly into their companies binance coin wallet address and this type of transaction is more secured by and quicker than the traditional means of payment where you might get robbed. This as also offers a more flexible means of payment. Also it can be traded for other cryptocurrencies on various exchanges platforms depending on the regulations by the exchange.

Cheaper transaction fee:

One of the key reason fro adopting cryptocurrency is to allow people to transact faster and cheaper than the traditional banking system, with binance, transactions or trade can be made easily and at cheaper charges fee, the fees are much more cheaper than the fiat currency system where transaction fee are always higher especially international transactions also, the binance coin platform can complete many transactions in a second therefore its safes time and make trade easier.

Despite this benefits, there are still some shortcomings in binance coin and some of these draw backs are:

Increments in charges :

binance coin is known for it cheaper transaction fees and that Is why alot of people are interested in trading in it but in recent years, the binance company have reduced the discount giving when transactions are made in binance coin so this has lead to an increment in transaction or withdrawal charges.

Also it is hard to trade in binance coins for beginners,

people who are just getting familiar with the binance coin might have hard time getting it because binance does not use traditional payment methods like bank transfers, cashapp or PayPal, Binance platform does not accept fiat currency deposits or withdrawals. This usually makes it impossible for beginners to start trading cryptos. Also the the binance coin is over dependent on the binance platform and there are fears that the coin might crash if there is any problem with binance, people also makes complaints about their poor customer support service.

Lastly, binance coin does not support smart contract and this smart contract offers a lot of benefit to business and investor and also binance has been a target for cyber crime, there have been two cyber attack on binance coin whereby hackers tried to compromise the system this lead to the creation binance hacker bounty program where binance offerred reward of two fifty thousands dollars for any one who has information about the hackers that tried to hack into their system.

@yohan2on