Cryptocurrency and Blockchain News
Weiss Ratings: Possible New Bitcoin Cryptocurrency to Lead the Market
Bitcoin has been the most dominant cryptocurrency from since the birth of the world’s first blockchain and cryptocurrency market in 2008. Not only is Bitcoin by far the cryptocurrency with the biggest market cap, it has tremendous amount of influence on the entire cryptocurrency market. When Bitcoin price surged, more than 99% of all other cryptocurrencies surged in price together. When Bitcoin price plunged, the market and the rest of the cryptocurrencies plunged as well.
Now Weiss Ratings, the world’s well-known Cryptocurrency Financial Rating agency has suggested that another cryptocurrency in the market may have already become the new Bitcoin.
Binance Coin (BNB), being relatively young at less than 2 years old, is no-where near the market cap of BTC. BNB is to be exact, not even at 10% of Bitcoin’s market size and had only recently launched its own mainnet as of April 2019 with migration still in progress. To add on, BNB was not projected to overtake Bitcoin in market cap for the next 2-3 years, probably not even 5-10 years. So why did the world’s leading Cryptocurrency Financial Rating agency suggested that BNB may be the new BTC?
With all other cryptocurrencies still struggling through Crypto Winter, BNB price had sky-rocketed 500% in less than 6 months since Dec 2018 and had incredibly surpassed its All Time High (ATH) price on April 2019 with most other cryptocurrencies yet to even recover 20% of coin values since the previous Crypto Spring.
Most importantly, the rise of Binance coin sparked the rally and gradual recovery of the rest of the cryptocurrency market at least twice. And when BNB price went down, the market followed, then rose again together with BNB. This triggered vivid memories of the influence Bitcoin price had on the market throughout the years.
The key reason why Bitcoin price was able to affect the market so much was that in the past the crypto exchange market was still young and developing. With stringent fiat money to cryptocurrency trading regulations and the lack of cryptocurrency exchanges, usually the only way for traders to acquire alt coins was to use bitcoins to buy them, and to sell alt coins for bitcoins to cash out. Hence, naturally the price movement of bitcoin would affect all other alt coins as well.
Today, Binance is by far the biggest and fastest cryptocurrency exchange in the world. Traders worldwide can use BNB, Ethereum, US dollars backed coins, or even credit card to trade for cryptocurrencies with excellent efficiency and speed at Binance exchange, and with BNB tokens they can get a lot of extra financial benefits not available if they trade with bitcoins outside of the exchange.
To add on, with the newly launched Binance chain and Binance DEx (Decentralized Exchange), Binance is projected to take over the ICO market from Ethereum since Ethereum is facing scalability issues and cannot offer any significant challenge in transaction speed.
When the bulk of market trades and ICOs go through Binance Exchange, its native tokens (BNB) becoming the new Bitcoin will not be a surprise to anyone. Hence, Weiss Ratings’ comments that Binance coin may have become or is becoming the new Bitcoin of the cryptocurrency market was reasonable or at least achievable.