Anyone who has ever been interested in cryptocurrency would agree that Bitcoin is the most widely known digital currency. It holds the distinction of being a cryptocurrency. Also boasts the largest market capitalization by a significant margin.
Nevertheless, Bitcoin has its shortcomings. With the growing recognition of blockchains’ advantages several alternative coins, known as altcoins have emerged to improve upon Satoshi Nakamoto’s whitepaper. Among these altcoins, Binance Coin has achieved success.
If you’re seeking alternative investment options in the world of cryptocurrencies beyond Bitcoin, Binance Coin could be a choice for 2023. In this comparison, we will evaluate aspects of both Bitcoin and Binance Coin while considering how experts perceive their potential growth, in the coming months. And at the end you can swap BTC to BNB with ease and profit
Can Binance Coin dethrone Bitcoin?
Binance Coin has been gaining an amount of attention lately. Stands out among other altcoins due to its broad support from various sources, not just the cryptocurrency market. In 2021 Binance Coin experienced a surge in price resulting in a market valuation of $86.5 billion in December. This achievement propelled it to become the world’s digital currency surpassing Tether and sparked speculation that BNB could potentially dethrone Bitcoin as the leading token.
Weiss Ratings predicted in 2019 that Binance Coin will have such a large impact on the crypto industry that it would eventually replace Bitcoin.
It’s not uncommon for people to believe that an altcoin could potentially replace Bitcoin. It’s important to approach predictions with caution. However investing in an altcoin can often be a move especially, in the short term.
So if you’re considering whether to invest in Binance currency or Bitcoin in 2023 we’ve prepared a comparison to help you understand how each coin stacks up against the other and their positions, within the cryptocurrency market.
Bitcoin vs Binance Coin: A Comparison Between BNB and BTC
Whether you invest in Binance Coin or purchase Bitcoin in 2023, both are expected to expand in the coming years and to be among the top cryptocurrencies for the foreseeable future. However, in order to compare Bitcoin and Binance Coin objectively, we must first examine each coin’s evolution.
Binance Coin Vs Bitcoin: The Key Differences
Here are the key differences between the two assets:
Bitcoin was the first cryptocurrency, and it was largely responsible for establishing blockchain technology. Bitcoin, which was created in 2009, was expected to revolutionize the world of finance and soon drew attention from forward-thinking investors.
Before Bitcoin, few individuals outside of the IT industry had heard of blockchain. The technology enables secure peer-to-peer transactions without the need for a centralized authority, such as a bank or government. Bitcoin was created with the intention of offering a means of payment, for both institutional transactions.
Initially many experts in the industry had doubts about Bitcoins capacity to retain its value. However these doubts were swiftly dispelled as early investors reaped profits. The price of a BTC token surged from $150 to over $1,000 in 2013.
Binance Coin (BNB) is the name of the native cryptocurrency used for Binance cryptocurrency exchange transactions. The coin was created on the Ethereum blockchain, but when the Binance decentralized exchange emerged in 2017, it was transferred to its parent network.
Being the coin of the Binance Exchange is an accomplishment, in its own right. Currently this exchange holds the title for the worlds largest in terms of trade volume with a processing capacity of around 1.4 million transactions, per second.
Binance Coin is used as a medium of exchange on the network, so it has a high trading volume, but it is also widely accepted as a peer-to-peer payment option, and, while it is not supported by PayPal, the Binance network has unveiled BinancePay, a rival platform for retail transactions.
Transactions and Speed
It is crucial to understand the key differences between Bitcoin and Binance Coin. One of the fundamental distinctions between tokens is how their respective networks handle transactions. If you’re thinking about investing in Bitcoin it’s important to know that the cryptocurrency has faced its share of criticism in this field throughout the years.
Bitcoin operates on the proof-of-work protocol, compelling network computers into a competitive race to solve intricate equations, thereby validating new blocks on the blockchain—a process referred to as mining. Notably, Bitcoin’s block generation occurs every ten minutes, a timeframe notably longer than several other cryptocurrencies.
Mining BTC mandates substantial computational power and resource dedication, with miners receiving Bitcoin tokens as compensation for their efforts. Further insights into Bitcoin mining intricacies can be explored here.
On a note, Binance has introduced the Binance Smart Chain, which is specifically designed for developing applications. This unique dual-chain system has greatly improved transaction processing and scalability, within the Binance network.
Setting itself apart, the new Binance Smart Chain has a fast block creation time taking little as 3 seconds in stark contrast to Bitcoins ten minute intervals. This increased speed is accomplished through a two-chain mechanism and the implementation of a proof of stake consensus protocol. Additionally, BNB offers trading fees compared to the Bitcoin blockchain solidifying the undeniable difference in transaction efficiency between Bitcoin and Binance Coin.
Supply and Demand
If you haven’t yet invested in Bitcoin, you may be asking how money generated by a computer network can have any actual value. The answer is found in Bitcoin’s built-in deflationary mechanism.
The total supply of BTC is limited to 21 million coins, which will never be exceeded. In addition to this restriction on overall supply, the reward given to successful Bitcoin miners is lowered by half at regular intervals – a process known as halving. This effectively raises the scarcity of free Bitcoin tokens on the network, which should boost BTC’s value in the next years.
Bitcoin demand is also showing no signs of abating. Indeed, at the end of 2020, PayPal began to support BTC, making the cryptocurrency available to its 300 million members.
As previously said, Binance Coin is the native token of the world’s largest crypto exchange, so it is understandably in high demand. In fact, at the time of writing, BNB had a trade volume of roughly $6,773,230,572, placing it in the top 10 cryptos based only on this metric.
In terms of supply, Binance Coin features an in-built deflationary process, however it differs significantly from Bitcoin’s. Binance uses 20% of its profits once a quarter to purchase back BNB and ‘burn’ it, which essentially means permanently removing it from the network.
This process will be repeated until 100 million Binance coins have been purchased and burned, accounting for half of the total 200 million supply. In principle, the approach increases the scarcity of BNB while also increasing its value.
Binance Coin vs Bitcoin: Which Is The Better Investment?
When it comes to the cryptocurrency markets technical details are certainly important. However, those who are well versed in this field understand that cryptocurrency, with its technical aspects, doesn’t always guarantee the best investment. This brings us to a question; How can we make a decision between Bitcoin and Binance Coin?
In order to determine whether it’s wise to invest in Bitcoin or acquire Binance Coin in 2023 there are factors that need to be taken into consideration. Firstly examining price fluctuations can provide insights into how specific market dynamics influence the price of a coin. Additionally, conducting an analysis of leading cryptocurrency platforms can give us an idea of what we might expect in the upcoming months.
Finally, it’s important to pay attention to what significant players in the finance business have to say. Sometimes remarks from a top authority, such as Mike Novogratz or Elon Musk, are enough to drive up prices; other times, comments are made in response to some of the most in-depth assessments available.
Bitcoin vs. Binance Coin: Price Comparison
The price history of coins is the only 100% reliable information we have, so it should always be included in any price prediction. If nothing else, it can show how coins have fared in the face of specific political or economic circumstances, and consequently how they may fare in the future.
Bitcoin has experienced growth since its inception. Originally it was traded for cents like other cryptocurrencies. It wasn’t until 2011 that it even equaled the value of the US dollar.
However, BTCs value skyrocketed in the years that followed. Between 2011 and 2013 the price of a Bitcoin token reached $1,242 resulting in significant profits for early investors.
In 2017 Bitcoin reached an all time high of $19,783.06. This caught the attention of investors who started including cryptocurrency in their portfolios. Although the price has fluctuated since then at the time of writing this text Bitcoin has exceeded its record. Peaked at over $68,400, in November 2021.
The price movement of Binance Coin has been quite interesting as it has mostly stayed within a range throughout its existence. Interestingly within its year, BNB managed to surpass the value of the US dollar. In January 2018 it reached a peak of $23.91, per token which was a growth considering it had only been traded for a year.
Over the 18 months or so the price of BNB fluctuated between $10 and $20 before experiencing a surge in the summer of 2019 reaching its all-time high of $38 in July that year. However, it quickly returned to its range. Remained there until the end of 2020.
However, things took a turn for Binance Coin in 2021. The introduction of applications and exchanges built on its smart network along with legal actions against Forbes being suspended led to a remarkable increase in BNBs value. It soared to over $676 making it the largest cryptocurrency, by market capitalization.
Future Predictions for Bitcoin vs. Binance Coin
Naturally, the abrupt increase in the price of BNB rendered any current price projections relatively obsolete. However, most major cryptocurrency platforms have attempted to re-evaluate things. Bitcoin has also achieved unprecedented growth in 2021, therefore future forecasts are where the Bitcoin versus Binance Coin rivalry truly heats up.
It’s safe to assume that BTC has some reasonably optimistic projections for 2023. According to TradingBeasts, Bitcoin will be worth $71,294.191 by December 2023. These are typical values, but the platform estimates that BTC might hit $87,000 before the end of the year.
The Economy Forecast Agency makes one of the more hopeful projections. The platform forecasts that BTC will not only maintain its recent gains, but will also continue on a similar path, surpassing $93,299 per token by the end of 2023.
DigitalCoinPrice predicts that Bitcoin will achieve a very respectable average of $84,830.89 per token by December 2023, falling somewhere between TradingBeasts and The Economy Forecast Agency.
Despite some significant disagreement, the majority of renowned crypto analysts foresee BTC growth, thus anyone looking to buy Bitcoin in 2023 should reasonably expect a favorable return on their investment.
DigitalCoinPrice was the first to release their updated forecast for the price of Binance Coin. According to their analysis it is predicted that Binance Coin will reach a value of $893.57 by the end of 2023.
On the other hand WalletInvestor anticipates that BNB will continue its successful trend and experience consistent growth throughout 2023. They project that Binance Coins price will steadily increase on a basis reaching a peak value of $714.284 by December 2023.
The Economy Forecast Agency is once again extremely enthusiastic on Binance Coin, predicting that BNB will end December with a high of $753.
How Does Binance Coin Compare to Other Cryptos?
It’s one thing to compare Bitcoin to Binance Coin, but keep in mind that these coins have completely different infrastructures, and it might even be claimed that their primary usage is different. Unlike Bitcoin, which was designed exclusively as a peer-to-peer payment mechanism, Binance Coin has evolved into an exchange medium.
A more fascinating route to investigate is how Binance compares to other cryptos, particularly Ethereum, which serves as a sort of pseudo-parent for Binance Coin because it initially hosted the newer coin.
Etheruem is the second largest coin by market cap, therefore it might be the next behemoth to fall in the aftermath of BNB. Industry experts have predicted a “flippening” event in which Binance Coin will dethrone Ethereum, and this is a very real possibility if Binance-based DeFi apps outperform Ethereum-based counterparts.
The Binance Network currently hosts 67 decentralized applications, which is far behind Ethereum, but the new Binance Smart Chain offers much lower fees and already hosts two major players in the DeFi dapps landscape: Venus and PancakeSwap, which have already generated $14 billion and $1 billion in transaction volume, respectively.
Conclusion: Binance Coin vs. Bitcoin
It may appear that there is no genuine competition between Bitcoin and Binance Coin, but the latter has had a greater price increase in terms of percentage – and after all, it is the percentage that matters for investors.
Most analysts feel that whether you invest in Binance Coin or buy Bitcoin in 2023, you can expect to see some rather amazing gains. Of course, forecasts vary greatly, but both tokens are expected to rise in value over the course of the year.
Whereas Bitcoin is enjoying greater widespread success than ever before, the new Binance Smart Chain’s potential is only now being realized. In truth, the debate between Bitcoin and Binance Coin is pointless; the wise investor chooses both for their portfolio instead of just selling bitcoins for cash
Is Binance Coin a better investment than Bitcoin?
Comparing Bitcoin and Binance Coin can be a task, due to their functionalities. When it comes to investing it’s best to see them as assets within a balanced portfolio. Both coins are anticipated to grow in the term making it difficult to choose one over the other at this stage.
Binance Coin has experienced growth during the months of 2021 and although projections suggest a slowdown towards the end of the year there is an expectation that this altcoin will continue appreciating until 2023. Including Binance Coin, as part of a portfolio could potentially be a decision.
How to Buy Binance Coin and Bitcoin
If you’re interested in investing in Binance Coin or buying Bitcoin in 2023 but are new to the world of cryptocurrencies you might be wondering how to start building your investment portfolio.
The first step is to open an account with a broker. We suggest considering ChangeHero as its an established platform that offers access to a range of coins. Additionally they provide plenty of resources for beginners. You can buy BNB with debit card there as well as Bitcoin.
Setting up an account is quick and easy, requiring some personal information and a valid form of identification for verification purposes. Once your account is active you’ll have access to up to date cryptocurrency prices and the ability to execute transactions with a few clicks.
None of the information on this website is investment or financial advice. CryptoMode is not responsible for any financial losses sustained by acting on information provided on this website.