I just finished my steem power-down, yay! This is the first in a series of posts about what I did with the STEEM. Of course I’m just a small-time minnow but I absolutely loved the free internet moneys I received each week as a result of the farcical J^stin S%n hostile takeover of steem and the events that ensued thereafter! One thing I did was transfer some of the STEEM on to Binance exchange, traded it for BNB and parked it there for a while (I also traded some STEEM for ETH on Binance exchange - more on that another day!).
Why? Firstly, I think BNB coin is underrated as a utility. Holding BNB makes it cheaper to trade on Binance exchange. Obviously Binance Exchange has more listings than most other exchanges. BNB coin has trading pairs with most of the altcoins listed on the exchange so it gives me the flexibility to easily and cheaply trade in to something else when a better opportunity arises. BNB can also be used as collateral to mint KAVA’s stablecoin (KAVA is like MakerDAO on Cosmos) which then opens up opportunities for crazy DeFi interest rates - I have not done this but I looked into it as an alternative to DeFi on Ethereum.
I also believe that in comparison to other altcoins, it performs well as a store of value - in theory the value of BNB coin increases in value after each quarterly burn. Love them or hate them, there is no doubt that Binance is ‘blitzscaling’ - they are fast becoming the Amazon of crypto. Personally I started to like Amazon a lot less when I realised they were taking over the world but they aren’t out to win popularity contests and neither are Binance. They are constantly announcing new parts of their business, including mining pools, exotic margin trading products, loans, savings, etc. If BNB coin is a proxy for Binance the (privately-held) company (whether or not this is true is a contentious issue!), then in theory its success is tied to the company’s success. If this is the case then it stands to reason that it is less correlated to Bitcoin than other altcoins - maybe this is the reason why it performs well as a store of value?
I didn’t end up HODLing all of the BNB that I accumulated from my steem power-down. I will detail some of my trades from BNB into other alts in future posts (as well as what I did with the rest of the STEEM). Thanks for reading!
