Bitcoin has always been known as the king of the cryptocurrency world. It has seen its ups and downs, but even in the hard times it remained the leader of the rating. But nothing lasts forever, could the crypto throne be taken by another coin, for instance, the recently launched BNB Coin?
What is BNB Coin?
Recently, the second largest cryptocurrency exchange in terms of volume Binance has launched its own cryptocurrency, called Binance Coin. BNB Coin is a digital asset, first created on the base of Ethereum blockchain, later put on Binance’s own blockchain, meant for paying for services at the exchange. Moreover, this coin will give access to advanced functions.
Currently, Binance Coin occupies the 7th place in the CoinMarketCap rating with its exchange rate of almost 23 dollars per coin.
In the recent couple of weeks, BNB Coin has shown incredible results, becoming a leader of the market and defining the direction of its development. The upward price trend and the relative novelty of the coin made some experts think that BNB Coin is a serious competitor of Bitcoin.
Can BNB Coin replace Bitcoin?
According to Weiss Crypto Ratings report, the success of Binance Coin will not be able to outshine Bitcoin in the long run. The specialists are sure that the price soar of BNB Coin’s price is temporary, and soon the volatility will kick in.
“Binance also merits a B-, but its grade is currently influenced by a recent surge in its market price, which may not be sustainable,” is mentioned in the report.
Also, Binance has just launched its decentralized branch, which also might have influenced the price jump of BNB Coin. However, this proves the temporality of the coin’s success as well.
Moreover, the big obstacle is the centralized nature of Binance Coin, while decentralization is the main feature of Bitcoin, which provides for security and transparency of transactions. Lacking this important characteristic, BNB Coin will hardly ever replace the world’s #1 cryptocurrency.
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