A Big Secret of BNB coin! You Must Read This Or You Would Regret Later

[numanoid]

Most of you already ever heard and know about Binance Coin or BNB. Recently BNB price skyrocketed to above $140 but unfortunately it's down to $120 now.

I will tell you guys a big secret of BNB coin, idk you guys already realized it or not. So let's begin the secret!

Binance's profit in 2020 expected between $800 million - $1 billion

https://www.theblockcrypto.com/post/86667/binance-2020-exchange-profit-ceo-comments

Binance's total supply is 170.532.785 BNB, so
Earning per share/coin (if $800million profit) = $800 million/170.532.785 = 4.69
Earning per share/coin (if $1 billion profit) = $1billion / 170.532.785 = 5.86

Now we are going to calculate Price earning ratio,

https://coinmarketcap.com/currencies/binance-coin/

Using BNB price now, we get $124

So PER/ P/E for BNB coin (if $800million profit) = $124/4.69 = 26.43x
PER/ P/E for BNB coin (if $1billion profit) = $124/5.86 = 21.16x

FYI even the most successfull investor, Warren Buffet have invested in many investment with P/E higher than 30x

https://www.quora.com/What-was-the-highest-P-E-that-Warren-Buffet-paid-for-a-stock

Even for Coca Cola, Warren Buffet had to pay with P/E 29x

https://www.quora.com/What-was-the-P-E-Buffett-paid-for-Coca-Cola

That's why price skyrocketed when BNB coin was only worth $40 few days ago because their P/E was only 40/4.69 = 8.52x
- 40/5.86 = 6.82x which VERY UNDERVALUED.

So what will you do? Invest on BNB now or not? It's all your decision, and DYOR.

[AB de Royse777]

So what will you do? Invest on BNB now or not? It's all your decision, and DYOR.

Interesting but not sure what to take from this.

I considered to buy some BNB to pay the fees of some occasional trades I do on Binance when the price was around $17. I think I have 1 or 2 BNB (never really checked since then, even now). Rather than paying a discount on the trade fees, where is the use of BNB to be honest?

I get it, all those coins are worthless but still people are buying and selling to make profit (fiat or bitcoin). Now, when the price is $120 are you suggesting to by the coin?

Another question - when I am buying BNB, actually what am I buying? The company share or something else?

[ryzaadit]

Everyone knows it's good.

But the problem, we all don't know what the f*ck is will happen to the market and when the bubble happens. That's the problem we don't want to enter a FOMO with a high price, BNB always good but entering with high race from all time high USD I think not.

[GreatArkansas]

Thanks for this OP, you got a point somehow. Maybe you are right because my first thought is the popularity of Binance Smart Chain, where it kinda becomes an alternative for Ethereum, which most of Decentralized Finance (DeFi) are built under the Ethereum network.

Honestly, the pump was really fast, I was just expecting it will just touch $100, and then pullback first, but wtf, it surges so fast up to around $140.
If me buying BNB now, I probably wait for some pullbacks, the recent run is huge, so waiting for some price corrections may good.

[Yaunfitda]

Thanks for this OP, you got a point somehow. Maybe you are right because my first thought is the popularity of Binance Smart Chain, where it kinda becomes an alternative for Ethereum, which most of Decentralized Finance (DeFi) are built under the Ethereum network.

Honestly, the pump was really fast, I was just expecting it will just touch $100, and then pullback first, but wtf, it surges so fast up to around $140.
If me buying BNB now, I probably wait for some pullbacks, the recent run is huge, so waiting for some price corrections may good.

There is also the argument that projects are moving out of Ethereum because of the high gas fees and then shifting to Binance Smart Chain and probably that's one reason why the price suddenly go up in the last couple of days.

It was really fast, but we all know that the whole market though grow so quick as well specially when Elon Musk put a huge amount of their money on bitcoin. As for investing on BNB, why not, but it's good if people have bought when the price is still cheap, just saying.

[Bttzed03]

So what will you do? Invest on BNB now or not? It's all your decision, and DYOR.

Interesting but not sure what to take from this.

Yeah I'm kinda lost as to what @numanoid is trying to point out here. It's like he's saying BNB was pump/inflated to match the performance of known companies worldwide in the hopes of attracting bigger players of Warren Buffet's caliber.

Rather than paying a discount on the trade fees, where is the use of BNB to be honest?

DeFi and CeFi provided more utility to BNB. It can be used for lending, staking and farming. And, of course, BNB holders gets a chance to join IEOs.

[Kena Banned]

So what will you do? Invest on BNB now or not? It's all your decision, and DYOR.

Interesting but not sure what to take from this.

I considered to buy some BNB to pay the fees of some occasional trades I do on Binance when the price was around $17. I think I have 1 or 2 BNB (never really checked since then, even now). Rather than paying a discount on the trade fees, where is the use of BNB to be honest?

I get it, all those coins are worthless but still people are buying and selling to make profit (fiat or bitcoin). Now, when the price is $120 are you suggesting to by the coin?

Another question - when I am buying BNB, actually what am I buying? The company share or something else?

Same like me buy BNB only for discount trade, but now im not buy it anymore since the price so high.
When you buy BNB you actually just buy a token which have utility to give you a discount of the trade fees, its not share of Binance or something else.

[pealr12]

Everyone knows it's good.

But the problem, we all don't know what the f*ck is will happen to the market and when the bubble happens. That's the problem we don't want to enter a FOMO with a high price, BNB always good but entering with high race from all time high USD I think not.

yeah but people are busy buying eth like their life depend on it not to mention its ridiculous high gas fee, what good is eth without transaction fees? i will rather buy bnb that will give returns than eth without no value except being pumped to infinity,
@op, thanks for a detail explanation of bnb earnings, i have few bnb and i planned to top up soon, bnb will hit $1000 sooner than most people think, and many will want to buy it there after.

[numanoid]

So what will you do? Invest on BNB now or not? It's all your decision, and DYOR.

Interesting but not sure what to take from this.

I considered to buy some BNB to pay the fees of some occasional trades I do on Binance when the price was around $17. I think I have 1 or 2 BNB (never really checked since then, even now). Rather than paying a discount on the trade fees, where is the use of BNB to be honest?

I get it, all those coins are worthless but still people are buying and selling to make profit (fiat or bitcoin). Now, when the price is $120 are you suggesting to by the coin?

Another question - when I am buying BNB, actually what am I buying? The company share or something else?

Go to binance, and read all you can do with own BNB coin.
I don't suggesting people, i just asking people, you even qouted my question.

I'm just trying to explain how undervalued BNB coin earlier, which you can't find in other coin because they never tell us about their profit etc.

[Sterbens]

There is also the argument that projects are moving out of Ethereum because of the high gas fees and then shifting to Binance Smart Chain and probably that's one reason why the price suddenly go up in the last couple of days.

indeed this is the pattern of doing business and investing using postage. We have seen from Ethereum, we have already felt how popular Ethereum is very friendly to small traders like us, under any circumstances we only need 2-5 seconds with GWEI 30-40. and what the Binance Smart Chain is currently offering is the same, which is to attract all Ethereum sending customers to BNB. When everything is on target, it will gradually become like Ethereum today, which is not friendly to small traders.

[masterzino]

Your math as pure numbers is right, but the comparison is wrong.

Chances people to drink Coca Cola in 29x years is bigger than trading in Binance in 8.52x years.

BNB is worth the money, yet I think I missed that train in this price and I have chances for a better profit with newer coins.

[numanoid]

Your math as pure numbers is right, but the comparison is wrong.

Chances people to drink Coca Cola in 29x years is bigger than trading in Binance in 8.52x years.

BNB is worth the money, yet I think I missed that train in this price and I have chances for a better profit with newer coins.

It's seems you don't understand what P/E mean, better to google it first what does P/E mean and come back on here. The High P/E it's mean the price of that thing is already quite expensive, Low P/E means the price is very cheap.

[jacafbiz]

I don't believe in all these jargon you write there, the valuation in Crypto is inorganic and I believe the recent price action is as a result of people seeing there is a lot of value to be made from projects listed on Binance chain. Binance is the most profitable company in Crypto land and if the valuation is based on the mathematics above it should at least be Number 3 on coinmarketcap but I have a feeling CZ don't want to put the project in too much spot light and decided to be driving value to other projects through their launchpad and launch pool

[ethereumhunter]

Interesting calculations @numanoid. Thank you very much.

Besides bitcoin and ethereum, bnb can be the next potential coin that will increase in the future. I do not know much about how the calculation, but I feel that BNB can compete with ethereum sooner or later, and that will only a matter of time. Compare to the fees, I think BNB still lower than ethereum. But we will see what will happen later. Does ethereum can defend the position at the market or it will beat up by BNB.

[masterzino]

Your math as pure numbers is right, but the comparison is wrong.

Chances people to drink Coca Cola in 29x years is bigger than trading in Binance in 8.52x years.

BNB is worth the money, yet I think I missed that train in this price and I have chances for a better profit with newer coins.

It's seems you don't understand what P/E mean, better to google it first what does P/E mean and come back on here. The High P/E it's mean the price of that thing is already quite expensive, Low P/E means the price is very cheap.

I know very well what P/E is, and you are trying to convince us that BNB is very underpriced.

I'm trying to say you can't expect to get this E for this P for BNB as long as for Coca-Cola. Both assets are incomparable.

-

I will give you a real-world example from my primary business - web sites. Check Empire Flippers, one of the biggest web site brokers around:

https://empireflippers.com/marketplace/

The usual P/E sale price of a web site is x3.2 - x3.5.
But they are not cheap nor undervalued. Their (earning) life-span is shorten than Coca-Cola.

[el kaka22]

Well, I do agree that this would be a correct estimate if BNB was a stock of binance, but it is not, Binance makes money and it keeps the money, people who own BNB do not get share of the profits like how people in stock world do. In stock world there are things called dividends which mean you would make profit from holding certain stocks, and even the ones that do not give dividends do have to show their profits so the price goes up. However when you are in the crypto world and you can't make any money at all from companies profits, they are not relevant.

But what is relevant is that since binance made a lot of money, that means binance has a lot of customers, and since binance has a lot of customers those customers spend money and since those customers spend money that spent money goes to paying bnb transactions which they have to pay for. That could be the reason.

[numanoid]

It's correct you will not get dividen by hold BNB coin since this is a crypto, not a stock. If you are looking for dividen, invest on stock not in crypto.

Recent news about Staking BNB coin you can stake CARDANO and ATOM coin up to 24.79% APR

https://www.binance.com/en/support/articles/9e7487e78307486fb3ccc26525008d54

Fellow Binancians,
Binance Staking has launched a new high-yield activity. Stake your ADA and ATOM starting from 2021-02-10 12:00 PM (UTC), to earn up to 24.79% APY.

When BNB reached $1,000 later, i hope you guys don't ever regret later

[TheGreatPython]

Most of you already ever heard and know about Binance Coin or BNB. Recently BNB price skyrocketed to above $140 but unfortunately it's down to $120 now.

I will tell you guys a big secret of BNB coin, idk you guys already realized it or not. So let's begin the secret!

I am not saying that BNB was undervalued or is overvalued or anything like that but there is a huge part of "what people think it worths" situation in BNB in any other crypto. The reason why BNB went up is the way people are spending hundreds of millions of dollars worth of BNB in the defi world, binance smart chain became big, huge and that really did changed a lot in the crypto world, which is why I think we are in a situation where BNB is worth a lot.

I believe undervalued and overvalued doesn't exist in crypto, people think one coin should worth something and they buy and sell accordingly and price gets there, there is nothing exterior that makes it go up or down, it is all buyers and sellers that decide the price. Hence, I think this mathematics could be right or wrong but it wasn't the reason in the end, people didn't calculated it before they bought bnb.

[ashmodeus]

well , i have no doubt on BNB , since i definely know about BNB price since 2017 when i just registered to that exchange for cashing my token from bounty. i also still remember when BNB reach $20 for the first time on january 2018 , when mostly all of coins getting red. but well , its just gone like that. never thought will be exicting like today also with their BSC its something big for sure. happy profit for all of the holders.

[Aletheaminlin]

Very good, but I think it is not enough to be considered a secret. For binance, my impression from the beginning when I knew about them is that almost all areas in this market are exploited by binance and do very well to bring the best user experience. From the very beginning I bought it from around $23- $28, I assumed it would end the altcoin season at around $400 - $500.