BSC showing Why Bitcoin Cannot Be Beat

Hey Jessinvestors

If 2017 was the year of BNB, then 2021 is the year of BSC, the chain nobody knew they needed, but now investors are chomping at the bits to get a piece of the action. The coin launched on June 26th and run an ICO until July 3rd, 2017.

The issued price was 1 ETH for 2,700 BNB or 1 BTC for 20,000 BNB. BNB first started as a platform reward token that you could convert dust into when trading, but its primary use was launching ICOs.

Binance launch bad was used to "clean up" the ICO game and allow ICOs access to their trading platform and direct listing, but investors would need to purchase BNB before they could jump into the various ICOs.

As you can tell at the time, ICO's were all everyone wanted to get into, and BNB became a gateway the same way Ethereuem was to the wider ICO funding game. BNB's centralised version was a lot smaller but wildly successful.

Launch of the DEX

After the ICO craze died down, BNB took a back seat, and we didn't hear much from it. Until the DEX craze took over, Binance DEX, which didn't really hit it off and investors focused on DEX operations built on ETH.

The dual-chain architecture of Binance Chain & Binance Smart Chain didn't appeal to many investors, and ETH is where the innovation lives.

Leaching of ETH

Eventually, once the DEX/DE-FI craze took off on ETH, its gas fees made it impossible for smaller investors to take part and chains like TRON and BSC began to see an opening.

TRON launched JUSTSwap, added yield farming with Sun token and copied a lot of the aesthetics of what was going on in ETH, but since the TRON ecosystem isn't all that compatible with ETH, it didn't really get people moving over.

Where BSC succeeds is that it is basically an ETH fork, its compatible with ETH wallets like Metamask. BSC works pretty much the same; the learning curve and user interactions are similar. This attracted ETH investors who felt they are getting marginalised by ETH's gas fees.

The launch of Pancakeswap on BSC, a Uniswap clone, and BSC's lower gas fees has seen Pancakeswaps trade volume exceed Uniswap and BNB; the token running on the Binance Smart Chain has skyrocketed in value.

If we look at the price action of BNB, the 2017 uplift from the launch pad is a blip on the radar compared to the recent run with BSC pulling more users into Pancakeswap and other dapps. According to data provided by @coingecko on BNB.

Copying or competition?

Many say BSC is only a copy of ETH, but what I see is completing ETH; it allows ETH to support larger traders who are fine with fees, and BSC will take on other customers who have been marginalised.

This does take away from ETH's user base and network effect, as well as capital flows. What good is having more of that if your chain is almost unusable for more users each day?

In the open-source community, copying isn't seen as an issue; if you can take code and spin up a competitive platform, why not? May the best innovator win!

A huge issue for BNB however is their limitation on validators of the chain which seems to be handpicked sock puppets, hmmm where have I heard that one before?

ETH can win back these users if ETH 2.0 is a success, but as for now, BSC is going to be the number 3 crypto for a reason.

It's helping solve ETH's biggest problem right now, and that shows you how valuable solving that problem is when you see how high BNB is flying right now.

Bitcoin is too boring

Now back to the title oh my article, why does this illustrate that Bitcoin can't be beaten? Because what it offers is BORING, its a long term savings technology that's entire value proposition is that it DOESN'T Change.

So, what is there to copy?
What is there to innovate against?

Bitcoin's strength is in its network effects and the power of the lindy effect; its consistency and staying power are what differentiates itself.

It's a unique selling point is the time value of money, which takes too long to play out, which is why other chains are focusing on building out a yield curve or trying to tackle certain markets like equity, tokenising real assets, becoming trading platforms.

Bitcoin is trying to disrupt the market of money; these chains are chasing secondary money markets. Chains will compete, copy and cannibalise each other while BTC marches on quietly.

Have your say

What do you good people of HIVE think?

So have at it, my Jessies! If you don't have something to comment, "I am a Jessie."

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