What is Binance Coin?
Some cryptocurrency exchanges have their own digital currency, and Binance is one of them. Binance Coin (BNB) is the cryptocurrency that powers the entire Binance ecosystem. In recent years, the virtual currency became accepted in a large number of stores and it now has a large number of use cases. In the next section, you will learn how Binance Coin works, how it can be used and more.
What is Binance Coin?
As we have mentioned before, Binance Coin is the digital currency that allows the Binance Ecosystem to run in a much more efficient way. BNB has different use cases. It can be used to fuel transactions on the Binance Chain, users can use it to pay for transaction fees on Binance and you can also use BNB to pay for goods and services.
The Binance Exchange is now completely integrated with BNB. As the platform expanded offering new services, the BNB digital asset started to be one of the most important pillars of the cryptocurrency exchange.
While the BNB virtual currency was only used in the beginning to pay for fees in the trading platform, it then became adopted by several services and firms. For example, BNB coins can now be staked and you can earn rewards, users can also hold BNB to participate in different promotions promoted by the crypto platform, and BNB coins can also be used to participate in Initial Exchange Offerings (IEO).
You can think of Binance Coin as points used by airlines to earn rewards and participate from special offers. The larger the miles or points you have the easier it will be for you to get access to special offers promoted by the airline.
However, Binance Coin is a much more valuable currency than the points offered by airlines. Why? First of all, Binance Coin has a limited supply. That means that the cryptocurrency has a total supply of 176 million BNB. There will never be more BNB in the market.
Moreover, Binance burns BNB tokens every single quarter. For example, the 13th quarterly BNB Burn ended with 2,253,888 BNB less in the market. That means that they have burned around $68 million USD. This shows that BNB is currently a deflationary cryptocurrency. The total supply is reduced on a regular basis rather than inflated.
As demand for this digital currency increases, it may be possible for it to have a higher price in the future. While other virtual currencies continue to release tokens to the market (for example Ripple through corporate sales) BNB burns part of its supply.
Other firms such as Travala are already offering customers with the possibility to pay for plane tickets and hotels using BNB. This increases BNB’s utility and it helps BNB holders to have a wide range of possibilities to use this virtual currency. In the future, Binance could add new functionalities to this virtual currency and this could definitely help increase the adoption of the BNB digital asset.