Is it still worth buying Coin An, which has increased by over 150 times in two years?

BNB is a platform token issued by Binance, one of the world's largest cryptocurrency exchanges. It was issued in July 2017 at a price of 1 yuan and has now reached 158 yuan (2019.5.4). In less than two years, the price of BNB has increased more than 150 times. This rise is truly enviable, so is it still worth investing in now? This article will provide a brief answer to this question.

Firstly, give a brief introduction to BNB.

Coin An Coin is a decentralized blockchain digital asset based on Binancechain, with a total issuance of 200 million units. BNB is destroyed quarterly based on the transaction volume of the Coin An platform for the current quarter. The use of coin security is mainly reflected in these aspects. One is that holding coins can discount Binance transaction fees, with a maximum discount of 50%. At present, the handling fee for the Coin On trading platform is 0.1%. Secondly, BNB payment can be directly used on the MonacoVisa shopping platform. Thirdly, virtual gifts can be purchased and rewarded using BNB on the Uplive live platform. wait. The value preservation function of Coin An Coin is mainly reflected in these aspects. One is that it is one of the largest exchanges in the world, and the tokens issued by CoinNet are relatively reliable compared to other various tokens. Secondly, it has a stable destruction mechanism, and as the quantity of destruction increases, its price will definitely increase. Thirdly, in the future, BNB will become the fuel for the decentralized online trading platform of Coin An, and when using Coin An's decentralized platform, BNB needs to be used. At present, BNB ranks 7th in the total market value of over 2000 cryptocurrencies in the world, reaching as much as 22.4 billion yuan. The current circulation is about 140 million pieces, and the 24-hour transaction volume is about 1 billion yuan.

Secondly, conduct a simple analysis of the upward trend of BNB.

Figure 1: Historical Monthly K-line Chart of Coin An Coin (BNB/BTC)

It can be seen that the prices of BNB/BTC are generally increasing. Before June 2018, the price of BNB rose with the overall trend, but fluctuated greatly, with no fixed pattern of monthly fluctuations. Between June and November 2018, the overall price of BNB decreased, which is related to the bear market environment in the currency circle. From December 2018 to March 2019, the overall price of BNB increased, which is related to the IEO craze initiated by Coin Safe. In recent April and May, the IEO craze has declined. Is there any major positive factor for Coin On Net? In addition, the price of BNB has already been very high, reaching a historical high of 168 yuan on April 21, 2019. Although it has reached a high level, there are no major positive factors to exert force, so the price of BNB has gradually decreased during this period.

The price of BNB/USD is similar to this trend. As shown in Figure 2.

Figure 2: Historical Monthly K-line Chart of Coin An Coin (BNB/USD)

From this, it can be concluded that although BNB has generally risen, in the past four to five months, the increase has fluctuated, the currency value has been unstable, and it is in a downward trend of volatility, so it is not suitable for investment now. But is that really the case? Let's take out the daily K-line chart for April and May and analyze it in more detail.

Figure 3: Coin An Coin Fourth and May Day K-line Chart (BNB/BTC)

From the above figure, we can see that from April 1st to May 4th today, the exchange rate between BNB and Bitcoin has been fluctuating, which is conducive to short-term operations but not conducive to long-term investment. After more than a month, BNB's Bitcoin price has remained basically unchanged. However, if we change the price of BNB/BTC to BNB/USD, we will find some differences. As shown in Figure 4.

Figure 4: Coin An Coin 4, May Day K Line (BNB/USD)

From this graph, you can see that the US dollar price of BNB in April and May also means that the Chinese yuan price is generally rising. However, Figure 3 shows that the price relative to BTC remains unchanged overall. What's going on here? Take a look at Figure 5 and you will understand.

Figure 5: Bitcoin's daily K-line chart for April and May (BTC/USD)

We saw a significant increase in Bitcoin prices in early April, with a daily increase of nearly $1000. So we understood that this was the soaring price of Bitcoin on April 2nd. On the afternoon of April 2nd, its one hour price surged by nearly 16%, from $4196.27 at 12:29 to $4849.46 at 13:29, marking the beginning of this small bull market. You should know that as the leader in the cryptocurrency field, as long as the price of Bitcoin increases, it can drive the entire coin industry up, and most other cryptocurrencies will also rise in price.

So why did Bitcoin prices suddenly rise, so much so that they have now swept away the previous downturn and embarked on a path of gradual recovery? We know that on December 17, 2017, Bitcoin reached its highest price in history - $19870. Afterwards, it plummeted all the way, dropping by 80% in less than a year. In my opinion, it is normal for Bitcoin to experience such a sharp decline, because on the one hand, the price of Bitcoin has indeed been inflated, and on the other hand, there is no widespread consensus on the application value of Bitcoin. However, it is also incorrect to say that Bitcoin has no value at all, at least mining costs a huge amount. We know that Bitcoin's production is halved every 4 years to address the issue of continuous currency inflation, as shown in the table below. From the table below, we can see that Bitcoin has experienced three sharp declines in the past 10 years, but each halving of production has led to a huge increase, without exception. The three red circles in the following figure indicate the time when the production has been halved. We can see that in May of the following year, Bitcoin production will experience another round of halving. Affected by this, we can confidently say that the price of Bitcoin is currently being warmed up. In other words, the bear market in the currency circle is gradually emerging, and the bull market is gradually approaching. The bull market in the currency circle has arrived, and as one of the important currencies in the currency circle, the Coin An coin, we have no reason not to believe that it will continue to rise.

Figure 6: Bitcoin production halving and price rise trend chart

Finally, Xiao Z concludes that the price of Coin An coin will definitely rise, with historical prices exceeding 500 yuan. In the near future, within three months, the price of Coin An coin will definitely exceed 200 yuan. If you want to invest in a relatively conservative and stable investment, then buy Coin An Coin now and sell it when it reaches 200 yuan. Xiao Z believes that you can never foresee the highest price point of any investment product, but you can foresee its higher price point. What you need to do is just take it easy.

Based on three reasons, Xiao Z concludes that the price of Coin An Coin will continue to rise.

Figure 7: Record Form of Seven Destroys of Coin An Coin

Xiao Z would like to say a few words as his conclusion. One is that there are risks to investment, and entering the circle requires caution, especially in the currency circle where almost all investment projects have the highest risk. The second is that investment must be stopped as soon as it is good, and one must not be greedy for achievements and rash progress. There are many people who understand this, but the ones who can truly do it are very good. People always want to earn and earn, always wanting to maximize profits. But I don't know that maximizing returns also means the greatest risk. Thirdly, this article is only a personal analysis of XiaoZ on the coin circle and does not constitute any investment advice. If any friends fail to invest according to this article's analysis, XiaoZ will not be held responsible.