BNB to BTC: The Technologies Behind the Coins

Bitcoin is, by far, the most valuable cryptocurrency by market cap. It conserves a hefty dominance over other cryptocurrencies, making up 40% of the total value of the market. However, there are many other coins that have a lot of potential.

Binance coin (BNB) belongs in the list of top 5 cryptocurrencies. Its connection to the Binance exchange has made it popular, and the emerging use cases through the BNB chain have made it one of the most important cryptos on the market. 

In this article, we compare BNB to BTC and review their fundamentals. With these thorough overviews, you should have a good idea of which one has more potential in the long term. 

Bitcoin Blockchain Overview

Bitcoin doesn’t really need an introduction. Released in 2008, it’s the original crypto that popularized blockchain technology. The chain uses a proof of work consensus mechanism, where miners compete to mine new blocks and receive rewards in the form of new BTC and transaction fees. 

In the long run, Bitcoin has shown some shortcomings due to poor scalability. However, this hasn’t stopped investors from believing in its potential. Institutional investors have been investing massively in BTC, which has given it a lot more stability. And instead of being used for its initial purpose (digital currency), Bitcoin has become one of the most solid store-of-value assets on the globe, rivaling gold. 

Bitcoin has a limited supply of 21 million tokens. For this reason, it’s considered to be a scarce commodity, with very few coins available for the global population. What’s more, block rewards are halved every four years, reducing the issuance of new coins considerably over time. 

BTC pair

Binance Coin Blockchain Overview

Initially released to support the Binance exchange through an ICO, the BNB coin had very few use cases at the beginning. It was an ERC20 token that could be used for rebates on trading fees and not much else. 

However, the BNB token migrated to its own blockchain in time and gained more utility as a gas fee token on the Binance DEX. A few years later, the BNB chain literally skyrocketed its use cases, as BNB became the gas currency for one of the fastest-growing blockchains on the globe. 

Suddenly, BNB could be used for staking, gas, yields, farming, DeFi, NFTs, blockchain games, and much more. The simple exchange utility token was no more, we now had a truly decentralized powerhouse in our hands. 

The Binance team periodically does buybacks of BNB tokens on the open market and sends them to a burn address. The goal is to effectively reduce the total supply of BNB to 100 million and even turn the token into a deflationary currency in the long term. 

BNB vs BTC: Coin Comparison

BNB to BTC pair

BNB has a total of 161 million tokens in circulation versus Bitcoin’s 19.1 million. This makes BTC much scarcer and more valuable for long-term holders. 

Regarding price action, Bitcoin has been around for quite a few years, more than a decade. In these 12 years, it has experienced four different bullish and bearish cycles and has come out more valuable each time. Its all-time high happened in November 2021 when BTC reached $69,000. 

BNB is a less established coin in the space, as it has been around since 2017. That said, it managed to reach incredible gains right after launch. What’s more, it overperformed the market during the bear market of 2019 and even reached a new all-time high of $45 during that period. However, it was in May 2021 that it reached its peak when BNB achieved $690 per token. 

Also have a look at Several Benefits of Paying With Bitcoin! and An Overview of the History of BTC Hard forks!

Final Thoughts  

BNB and BTC are fundamentally different cryptocurrencies, with different use cases. BNB serves as a vehicle for smart contracts on the BNB chain, while Bitcoin is the strongest store of value in the industry. Both coins have incredible potential in the long run. Making them part of your portfolio could be a great opportunity if you plan to invest in crypto through a cryptocurrency exchange

Jagrit Arora
Jagrit Arora

A student who is dedicated for his work. I love to read novels and watch informational videos for my growth. As you know books can give you tons of knowledge but you need to mean it.

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