Demystifying Bitcoin, the world’s largest brokerage “Binance”
Financial industry release time: 03-0418:25 Vientiane Conference annual award-winning creator, Beijing Fuhua Innovation and Technology Development Co., Ltd. official account
Source: Moment Headlines
Musk’s fire made Bitcoin once again a public topic. There is no doubt that Bitcoin is becoming a historical trend affecting world currency payments.
Recently, investors in the currency circle are paying attention to the news that Coinbase is about to go public, and its current valuation has reached 100 billion U.S. dollars, even far surpassing the parent company of the New York Stock Exchange.
Coinbase is a U.S. compliant Bitcoin exchange. Many investors believe that a new round of bull market in the Bitcoin industry has arrived.
But in fact, the No.1 of the currency trading platform is not Coinbase, but Binance.
In July 2017, Canadian Chinese Zhao Changpeng and former vice president of science and technology He Yi co-founded “Binance”, positioning it as a world-class blockchain asset trading platform. Binance’s core team and investment advisory team are also composed of more than 50 worldwide Membership of countries and regions.
Within 50 days of Binance’s launch, its users have covered more than 180 countries and regions. Currently, Binance supports about 120 cryptocurrencies, and it is expected that new currencies will continue to be launched in the future, providing global investors with more diversified trading options.
Compared with the popular Coinbase, Binance also has its obvious advantages: an open trading platform with the most investable currencies, allowing investors and traders to achieve flexible and changeable investment structure optimization and combination.
Wwith smart chain (BSC) represents the value of ecological empowerment that can benefit nodes, token holders, developers and users, which highlights the long-term value of its operation model.
Tthe former two cores bring massive high Strong profitability of net worth users.
Because of this, after Coinbase announced its listing, traders and investors in the currency circle immediately turned their attention to Binance. How to seize the opportunity to share the dividends of Binance, which is still in the explosive period, has become one of the hottest topics in the circle.
“You must stare at the stadium”
Bitcoin’s recent market value has hit a record high, and it has been widely recognized by mainstream investment institutions.
Tesla announced that it had invested US$1.5 billion in Bitcoin in January this year and accepted Bitcoin as a payment method for the purchase of electric vehicles. Musk also replaced the avatar of his social media account with anime characters embracing the Bitcoin symbol.
Another heavy news comes from Goldman Sachs Group-Goldman Sachs has restarted its cryptocurrency trading department and will trade Bitcoin futures and non-deliverable forward contracts (NDF) and other trading services for customers.
In China, big names in the investment industry such as Dan Bin have also expressed their recognition of the value of Bitcoin investment and have begun to actively deploy.
One of the fundamental reasons for attracting professional investors from waiting and watching to actively entering the market is that Bitcoin is becoming a representative of digital currency.
Its investment and transactional properties are more and more widely recognized, and its scarcity, long-term preservation, and liquidity Multiple investment values are constantly showing up over time.
As a result, the market value of Bitcoin’s trillion U.S. dollars is just the beginning. With the participation of companies, investors, and the public from all over the world, the value of Bitcoin transactions and investments will be further amplified.
The reason why Coinbase can create a “myth” with a valuation of hundreds of billions of dollars is that as a trading platform, its business volume and revenue will surely rise rapidly as the scale and frequency of bitcoin transactions continue to increase.
As the world’s largest bitcoin brokerage, Binance, a trading platform controlled by Chinese, the number of institutional accounts opened in 2020 has soared by 46%.
With the Bitcoin bull market from the end of 2020 to the present, Binance’s trading volume has continuously set new historical records, and the 24-hour trading volume has surpassed A-shares.
If we compare Binance and Coinbase, we can clearly see the gap between the two.
According to CoinMarketCap’s ranking and scoring of cryptocurrency spot exchanges based on traffic, liquidity, trading volume, and confidence in the reasonableness of the reported trading volume.
The currency arrangement ranks first, and its 24-hour transaction volume is almost 8 times that of Coinbase.
Up to now, the market value of Binance Exchange’s token “BNB” (similar to brokerage stocks) has become the third largest global digital currency after Bitcoin and Ethereum, with a market value of more than 39 billion U.S. dollars.
In an interview with Bloomberg News last December, Binance founder Zhao Changpeng predicted that full net profit in 2020 is expected to reach 1 billion U.S. dollars (6.4 billion yuan).
Data show that CICC will achieve a net profit of 6.828 billion yuan to 7.552 billion yuan in 2020, which means that Binance’s net profit in the past year can rival that of CICC.
Buffett once said: “Investors should consider the long-term development of the company, not the short-term prospects of the stock market. The price will ultimately depend on the future earnings. In the investment process, as in baseball, if you want to keep the scoreboard rolling, You have to stare at the court instead of the scoreboard.”
Obviously, in the baseball game of Bitcoin, investors need to find the leader on the field, and Binance is clearly the main attacker with the most home runs on the baseball field.
The value of making shovel
Like any emerging investment field, how to identify the industrial value link with the most investment value in this field is the key to maximizing the return on investment.
In the currency circle, the well-known saying should also be applied: “It is better to sell shovel to speculate in gold”.
As a digital currency trading platform, “the value of selling shovel” is the link that investors should pay most attention to. Coinbase is widely recognized based on this investment logic.
As the world’s largest digital currency trading platform, Binance has the advantage of a moat that aggregates the resources of the international currency circle.
At the same time, the Binance Smart Chain (BSC), represented by the help nodes, token holders, developers and users, can obtain Benefit’s ecological empowerment value can continue to attract all parties to settle in, and achieve high activity and strong stickiness.
Binance has an industry-leading advantage in the number and quality of investment and trading users in the currency circle, which makes it attractive The strong profitability of the eye-catching.
More importantly, from listing to trading, Binance is creating a “one-stop service” for investors. Regarding the platform currency BNB, Binance co-founder He Yi clearly stated that “BNB is greater than Binance.”
Binance currently does not seek to go public. It has become its established strategy to empower all value on BNB.
The above-mentioned multiple dimensions are the manifestations of the currency circle’s “value of selling shovel” theory corresponding to Binance, and it should be the entry point for investors to pay attention to Binance.
For investors, to pay attention to the development prospects of a digital currency trading service platform, not only to pay attention to its technological innovation, user volume, transaction funds and other explicit standards, but also to pay attention to its team, strategic layout, and the built transaction ecology. “Invisible” factors.
Binance has established an international development position from the beginning of its establishment, which enables it not only to quickly absorb investors from all over the world, but also to allow it to simultaneously obtain changes in user needs in major markets around the world, thereby continuing to iteratively upgrade itself.
From a centralized trading service platform to a decentralized trading platform, from BNB to BSC, Binance’s innovation awareness and self-evolution ability in the currency circle are the key to its continuous catching up with its opponents.
In this regard, Binance is not only a “shovel seller” but also a “shovel maker”.
Another “treasure” of Binance
Binance not only has “the value of making a shovel” + an exchange, it is also a public chain.
In how many categories can block chain be divided into?
Blockchains are generally divided into three categories: Public blockchain, Private blockchain, and Consortium blockchain.
The main difference between these three types of blockchains is that the public chain is open to everyone and anyone can participate.
The consortium chain is open to specific organizations; the private chain is open to a certain person or entity.
The public chain is currently the most concerned blockchain, and it is also the most widely used blockchain at present. The public chain mostly encourages participants to compete for bookkeeping through a token mechanism to ensure data security. Bitcoin and Ethereum are both typical public chains.
Why is Ethereum famous in the cryptocurrency circle?
The reason why Ethereum is famous in the currency circle is that the Ethereum smart contract is the first project in the blockchain field to provide smart contract functions.
Bitcoin’s network is the earliest digital currency network. Its main function is for value transmission or payment value scale use. Bitcoin itself does not have the function of smart contracts.
However, after the emergence of Ethereum smart contracts, a large number of projects appeared using Ethereum smart contracts to issue their own tokens, and a large number of projects ran on the Ethereum public chain, laying the foundation of Ethereum as the world’s largest public chain at that time.
The complete set of smart contract functions of Ethereum has provided a great impetus for the development of the entire digital currency ecosystem, which is the glory that Ethereum has created in history.
Which is the second largest digital cryptocurrency?
At present, the head public chain ETH (Ethereum) is the second largest digital currency in market value after Bitcoin, but the bottleneck of ETH development is network congestion and high GAS fees, and Binance’s public chain BSC solves it well. this problem.
There is no doubt about the technical capabilities of ETH, but projects and users have chosen to vote with their feet, and BSC, which is faster and lower in GAS fees, has become a new choice for users.
This change has also become the beginning of a fierce competition between the Ethereum system and the BSC system.
As the GAS on BSC, BNB has also become the winner of this contend, and the Coinbase effect has become the third-largest digital currency in the world by market value.
What is the competitive situation between Binance BSC and ETH?
The competitive situation between Binance BSC and ETH is very similar to that of Alibaba and eBay many years ago. For users, whether it is investment or other transaction behaviors, choosing a platform that can provide a better user experience and lower cost of use is the starting point for their decision-making. And Binance BSC gave full play to its strengths in speed and cost to attack the “shortness” of ETH, and finally won the hearts of a large number of users.
This is another “treasure” of Binance, which makes it equal to the sum of the value of the enlarged version of Coinbase+ETH.
In the future development of the currency circle, how to define the investment value of a digital currency trading platform? The first is Binance’s technical capabilities. The authoritatively certified memory matching technology has a processing speed of 1.4 million units per second, which is much higher than the industry average. This is an indispensable technology for the currency circle that emphasizes transaction response speed. Service infrastructure.
As a trading platform, Binance adopts strict selection criteria and only selects projects with good credit, large user base and strong liquidity. The probability of a project being selected by Binance is 3%, which is lower than the acceptance rate of Harvard University. On this basis, Binance supports approximately 120 cryptocurrencies and 240 transaction combinations. In terms of transaction quality and transaction openness, Binance has integration capabilities that other platforms cannot match.
In the era when global currency continues to be over-issued, countless investors hope to find new investment depressions to ensure the preservation and appreciation of their own funds and assets.
The continued rise of Bitcoin proves that more and more mainstream institutions are deploying encrypted assets such as Bitcoin. People enter the world of encrypted assets through Bitcoin and will eventually explore other assets in the field of encrypted assets, such as second only to Bitcoin. Binance Coin. As a trading shovel and even further alchemy, Binance is also at the center of investment in the currency circle.