Bitcoin Forum

We were aware of the token called "Binance Coin" a long time ago. In July 2020 we posted an article (https://freebitcoin.io/articles/is-binance-coin-bnb-better-than-bitcoin-btc) about it when the price of 1 BNB was only $18.

However, we are considering publishing an article about the exact opposite direction, since Bitcoin has completely bubbled itself into the $50k territory and 1 BNB is worth now close to $200 ! (more than 10x times what it was worth in July 2020).

The only way for the Crypto bubble to burst is through Binance, that's how we see it.

Binance is not really regulated, and it's perhaps one of the top Crypto exchanges out there.

However, the fact it's not regulated is putting it at huge risk, and currently the bubble is inflated so much, so all it takes is some action against it just like the previous payment providers such as e-gold and LibertyReserve which have been destroyed by US regulators - and then you have a worldwide bubble coming into a huge burst.

What do you think about this scenario? How far is it from reality?

We definitely wish Binance lots of success and we hope it would never go under any type of scrutiny but the bubble is inflated in a way that this scenario is simply screaming out loud that it is going to happen.

But what do you think?

We would like to hear your opinions.

BNB totally collapsing is actually a net positive for Bitcoin lol. Look, if it so happens that we get huge bad news for Binance and or BNB, where do you think the BNB holders would trade their money to? It's just either BTC, or some stablecoin.

that is your false opinion, and you think this way because you have believed the FUD that brainwashed you into thinking bitcoin can't or shouldn't go up.
the fact is that bitcoin is actually very undervalued right now and must be worth a lot more than this to reach its intrinsic value. then has to go up 3x more to reach a bubble.

there are a lot of shitcoins that are getting pumped and dumped. the more centralized they are the easier it is to pump them up during times of great hype.
take XRP shitcoin for example, it is practically a dead coin with no usages and has been dumping for over 4 years now. they just pumped it last month from $0.2 to $0.5

FTFY

it is too far that it doesn't even see the reality line anymore.
the reality is that Binance is a massive altcoin exchange like its predecessors that used to be massive altcoin exchanges and all died giving their place to another exchange. a chain that has ended with Binance and will be another exchange soon.

all of them blew up the same way too. Cryptsy then Poloniex then Bitrex then Binance. and none of them ever affected bitcoin price even the slightest bit.

Sounds more like an opposition post, why focus on bmb only, look at eth and how it is being pumped, bnb has a limited circulation on like eth that has no max supply yet keep pumping in price,
I believe cz is clever enough to know what to do in this regard, bnb is pumping because investors are busy buying just as investors are busy buying btc even at current price.

I read through your post here a couple times and I can't really understand what you're trying to get across here.  I don't think Binance or Binance coin has anything to do with bitcoin and YOUR perceived bitcoin bubble.  You're assuming bitcoin is in a bubble but many others are not.  What says bitcoin is a bubble, how can you prove this?

Exactly!
Fuel the fire with as many massive shitcoin pumps as possible. A large % of the profits always end up in bitcoin which works perfectly for me. I don’t dabble much in alts, I’m nearly 100% bitcoin which has proved very good so far.

So in conclusion, let BNB pump to over $1,000. Most of that will flock into BTC any way.

I don't get the point. Why should a BNB invoke a crash of Binance?

I use BNB as intended imo (saving fees on futures trading and other binance related stuff). Price of 200+ against USD is nice, but I usually erase USD from all my calculations.

Altcoins do not influence Bitcoin it's the other way round!

If bitcoin crashes by itself it will take all altcoins down with it but if BNB crashes by itself it's not going to crash Bitcoin.

Also, I don't feel like 50 thousand is such a big bubble. A lot of it comes from institutions not new investors. We could reach even 100 thousand before it becomes unstable.

You got paid by some binance rival for posting this? Why would any exchange want to do that?
Btc is the mother of all cryptos, if it goes down, entire market sentiment will shaken and all alts will go down to including bnb

Even if Binance was brought down. I don't think It would affect bitcoin in the long run. I mean, we now have several good crypto exchanges that are just waiting to take over from Binance. If Bitcoin's success was reliant on the biggest exchanges at  the time operating smoothly, then it would have died when Mt. Gox, the biggest exchange at the time got hacked and shutdown, but guess what? We are $52K today.

Well, considering that Coinbase is looking for a $77bn [1] IPO valuation, BNB at a $30bn market cap is not much of a surprise.

But you are right. If any of the big exchanges bust, the crypto total market cap will drop 50% in a blink. Still, I believe crypto will recover in the long run, just remember MtGox.



[1]  https://www.coindesk.com/coinbase-valuation-nasdaq-private-market

What is going to blow up huge regulated fiat and equity global bubble?
If something is going to pop in crypto than that is Tether USDT and not Binance exchange with their ethereum killer replacement attempt, and reason for pumping their price is high fees on ethereum and CZ army shilling their coin everywhere.
And let's not forget that Binance also earns a lot of money from liquidations and leverage trading, and they have one of the biggest Bitcoin mining pools.

Bitcoin - Altcoins - fiats or stable coins.

Capital in the market operates with this cycle. Binance is an altcoin and when it as well as altcoin season is cooled down, bitcoin will attract the capital and fuel its growth again.

It is true in bull or bear market and with the current market that is bullish, when bitcoin gets more fuel (capital) it will climb a lot. A note is bitcoin is only in its mid of the parabolic curve. Another note is with crypto market, overbought effects can make price exceeds far than any prediction or forecast.

I can see that the BNB prices have gone up by almost 12x during the last one year. But many of the altcoins had similar growth. Cardano, for example grew by more than 30x during the same period. And at least in the case of BNB, I have a feeling that their high valuation is justified. They remain as the largest cryptocurrency exchange, in terms of volumes and number of users. And the BNB market cap (~35 billion USD looks reasonable for me). If Coinbase can be valued at $77 billion, then it is fair that Binance is valued at less than half that amount.

Historically, collapsing of anything to do with a large exchange has been bad news for Bitcoin, at least in the short to medium term. BNB can also be traded against 200 pairs so it's not even a guarantee a large part of it will be exchanged for bitcoins.

It really depends on what kind of "collapse" we're talking about. If BNB collapses in a way that BNB gets completely shat on for whatever reason, it's almost guaranteed to be a net positive for bitcoin imo. On the other hand, if we're talking about an exchange hack, then sure it's going to be bad.

Definitely not guaranteed but it's a huge likeliness imo.

I'm pretty sure that this forum thread is an attempt to spread FUD... ;D
Yeah,there's a possibility for Binance and their BNB coin to collapse,leading to a BTC price drop.And so what?
The Bitcoin price will drop for a while and recover after a while.I don't see any drama.
I don't know if Binance is unregulated or not,it would be better for the crypto industry if they are complying to all the regulatory rules.The owners and shareholders of Binance don't want their company to get destroyed by the regulators,so they will do whatever they can to keep their business up and running.

Agreed. Right now any chance of Binance collapsing is very minimal. BNB is also doing pretty good, with historic high exchange rates and trade volumes. The exchange has always followed whatever regulations that are applicable and they never had any issue with the authorities. In the unlikely scenario of something going wrong for Binance, obviously there will be a negative impact for the entire cryptocurrency market. But it is going to be a short-term dip, rather than a long lasting correction.

BNB demise would be beneficial to Bitcoin, since all that money that's locked in BNB would go back into Bitcoin.
On the other hand, BNB demise would mean Binance's demise, and such an event for a top exchange would indeed affect Bitcoin. But that should also be a short-term problem.
All in all, XRP was much bigger, it has fallen and Bitcoin didn't really care. So why would BNB story be so scary?!

XRP is a shitcoin, so if BTC falls, XRP declines even more. But if BNB falls because of something bad happening to Binance, BTC will get hit with a ricochet, although the ricochet being Binance, not BNB itself.

I was always VERY suspicious towards all centralized coins like XRP and binance ......  
The reasons was
1) Centralized in my point of view made the crypto coin totally unworthy . if its centralized is as good as USD $ running throw the VISA network
2) The point of crypto is that nobody has the ability to control all network
3) Centralized coins is exactly what I would do in order to undermine and destroy cryptocurrencies

They key point of all coins real value is TRUST. The reason why we love Bitcoin is the fact that we don't trust Banks and politicians
we hate inflation AND centralized control, if any coin has any of these properties (inflation or centralized control) then in my opinion
is NOT a crypto coin but only a project to destroy crypto and therefore only for people unable to understand why bitcoin has a real value

Also stablecoins , in my point of view have no reason to exist at all
If they are stable , then they are de-valuated at the same rate as the USD or EUR. Actually they are COUPONS and not currency!
All goverments and Banks LOVE stablecoins and its very easy to understand why, throw USD they control stablecoins also! A new stablecoin for
them is the same like a new Amazon gift-card program.

If you trust your Government and your banking system, then stay in your official currency , you have no reason to invest in crypto.

If you trust your Government and your banking system, then your blockchain is called VISA , DINERS, AMEX OR MASTERCARD and you already use it.

Therefore in my point of view, Binance and XRP bubbles can blow up, without doing any harm to Bitcoin because
All centralized coins wasn't crypto anyways
They were bubbles AND NOT BITCOIN

This truly is terrifying. I cannot believe that this never crossed my mind till now. And by the way you said explained it, I can understand that it is really likely to happen. And the fact that you have a good point is what terrifies me the most since binance is such a huge part of this industry, and if something awful happens to it, the whole market in this industry will be affected and will be in big trouble. Even if we say that binance is capable of recovering if ever, it still doesn't make the situation less dire. I'm starting to think that I may need to take profits now while I still can just to be safe. It's better to have small profits than losses.

Finally we have someone telling the scenario on the other side, not just truly FOMO and anything related.

This could happen and I'm afraid the market will be affected big time because once regulators scrutinize Binance, it will affect the entire market since it's been sitting at the number 3 already. Yes, it's a bubble and every bubble would not last, but bitcoin was able to survive during the last time's bubble and correction hereafter, so I think we might be seeing some big bear market here.

My thoughts exactly, so far I have seen so many alts that have performed more than bnb in terms of price increase this few days but the op's attention is directly at bnb which makes it questionable,
Many people buy bnb have their different reasons for buying, some buy to earn passive income for keeping bnb in the binance vault, others stakes and some for ieo purposes, many buy to hold for higher price,
Besides I don't think cz is that ignorant of the regulatory rules involved,  I don't see the point of this fales alarm.

I think that BNB s one of rare coins with actual usecase. Most coins are just speculations to be traded on guess where? Bianance. Their sole use case it of be traded. Pumped and dumped. 90% of coins. This is why value of BNB went that high. $40 billion for a utility token of a crypto exchange? are you crazy? It is 100 times to expensive.

Binance coin (BNB) is really performing some good wonders in the crypto space, am happy for those who hold the coin but am sad for myself cus i never thought it wise to buy and hold some bnb coins, how long this will continue will go up, i dont know, but then, if it comes down crumbling, it will be a very good opportunity for people like me to buy and hold some bnb as it is kinda certain that bnb might be standing side by side with eth in the near future, eth is already rekted due to high fees, every project is rushing to binance chain cus of its low transaction fees.

OP has not realized that the reason BNB increased has nothing to do with the exchange itself, and that is why it is wrong that BNB will cause the bubble to burst, plus I do not think that we will be capable of deciding which one started the bear run when it happens, all coins will drop around the same time, maybe few days difference but they will be all around the same week and will continue to go down for a while.

BNB increased because it has a BSC blockchain system where defi projects could make their profits and that is why I think it is important that we decide on why we wanted to buy and I bought it because I believed BSC would pass ETH in total value locked and we have pancakeswap with more than uniswap already which shows you that BNB could go as high as 1.5k dollars each and go beyond ETH with a flippening and it wouldn't really be weird as long as crypto as a whole doesn't turn into a huge bear run.

Everyone is talking about BNB token today because it is now number 3 on the CMC, do you want BNB or XRP in number 3. I believe there is still more juice in BNB if you forget all these sentiments and have open mind. Binance is the most profitable company in Cryptospace, if CoinBase is valued at $70 Billion then expect BNB Market cap to be close to that or surpass it very soon, the Binance chain is well people want to be now, ask me how many Ethereum has been staked, BNB tokens is now been staked for users on BSC to earn reward and the more users we have on the BSC chain the higher the price will grow.

Binance was a non-US based exchange site and your scenario sounds illogical. Even if binance doesn't provide service to the US customer and it will be fine. Binance will never be sued by SEC. That's different from most cases that happened in US.

Binance was offering so much utility usage and that becomes the main thing to attract the buyers. this time binance has surpassed $300.

If you have no money invested in Binance , you have NOTHING to be afraid of....

Fall of BNB or Binance will impact the crypto market for sure in the short term because most people are holding their cryptos in exchanges even though it never meant to be store place and BNB growth looks too scary since people see Binance smart Chain as an alternative to ethereum and this has been used to bump the price of BNB and definitely it will fall when BTC starts to dump.

Now I consider Binance as a convenient and affordable tool for work. I watch the development of the project and make sure of its performance and reliability. Why is it bad to have an alternative to expensive platforms? Nowadays many people try Binance in action and I think that most will appreciate its benefits.

Today 1inch start working with BSC! This is amazing news!