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Binance Coin Price Prediction 2019-20-25 — How Much Will BNB Cost?

  • Denys Serhiichuk
    📚 WikiCoin

    📊👀Despite the fact that Binance Coin is not traded on lots of exchanges, it has entered the top 10 cryptocurrencies. The main reason why this asset is so popular is that it is the native token of the most used trading platform, Binance. The coin gives some benefits for traders, particularly the reduction of fee. In this article, we will try to predict its price within the next few years


Binance Coin Price Prediction 2019-20-25 — How Much Will BNB Cost?
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Contents

Cryptocurrency Binance Coin (BNB) was created by the largest crypto-trading desk, Binance, topping the list of the best trading platforms for buying and selling digital assets. During its existence, the crypto-exchange has managed to be in the first place in terms of trading volume and has never been compromised by a successful hacker attack. The BNB Token is an internal cryptocurrency, designed to make it easier for investors to interact with the platform and to act as a kind of incentive prize in the framework of the loyalty program.

Binance logo


The idea of ​​creating a token and BNB ICO

When developing the Binance crypto exchange, its creators wanted to offer investors something that would have value and could be used to reward customers. This is how the BNB cryptocurrency appeared, which was created as a token on the ERC20 protocol supported by the Ethereum platform.

The Initial Coin Offering, i.e. ICO BNB, was conducted in July 2017. The total number of issued tokens was 200 million. This is relatively small, so this factor will definitely contribute to the growth in demand and, accordingly, in price. In addition, the exchange regularly conducts the redemption and subsequent burning of tokens, which contributes to the strengthening of the Binance Coin rate.

By December 2018, only 190 million coins were in the network, as 10 million exchange had already been bought and burned. The company's management has announced that it is planning to destroy half of the coins, i.e. only 100 million tokens will remain in the network in the end.

Binance Coin logo

Many people mistakenly consider BNB to be a utility token, but this is not quite true, because it has more functions. For example, taking into account the BRAVE platform and its BAT token, then the participants do not particularly need it since it would be easier for them to use the popular cryptocurrency for interaction. In the case of Binance Coin, everything is different because:

  • Using BNB, you can buy other cryptocurrencies, the total number of which exceeded 80 units. Such a wide and growing variety is offered to customers by the Binance exchange, where a whole market has been created for the use of this coin.

  • By applying BNB, customers save on commissions. When making transactions with trading assets on Binance, it is necessary to pay a fee of 0.1%. If the exchange tokens are on the balance, then commissions are charged by default and are not 0.1%, but only 0.05%. However, the exchange only in the first year of operation provides an additional 50% discount on commission. After 2 years, the discount will not be 50%, but 25%, after 3 years – 12.5%, after 4 – 6.77%, and after 5 – 0.1%.

  • In 2018, Binance announced the creation of its decentralized counterpart, where the BNB tokens will become an important link in the development of the ecosystem being created. The coin has new horizons of application, which increases its prospects and, accordingly, will favorably affect the rate in the future.

The creation of a decentralized exchange will result in the development of its own blockchain platform. Then the BNB might migrate from the Ethereum network, where it represents the ERC20 token, and become a fully independent cryptocurrency. It is not entirely clear what advantages this will have since no specific features have been announced regarding the Binance blockchain. But if this project is successfully implemented, the position of the coin on the crypto market will become more durable.

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Where to buy tokens?

The easiest way is to buy BNB where they are created and operate, i.e., at the Binance exchange. However, other trading platforms also support the sale of this asset, namely:

  • LBank, where a pair with Tether is supported (USDT)

  • HitBTC, where it is traded with USDT, BTC, and ETH

  • AirSwap, where the purchase can be made with ETH

  • Bancor Network – for BNT

  • Kyber Network – for ETH

  • Gate.io – for USDT

  • Trade Satoshi – for USDT, DOGE, ETH, LTC, and BCH

  • IDEX – for ETH

  • DDEX – for ETH

Artificial inflation control

The management of the exchange is planning to burn the cryptocurrency until the number of coins falls to 100 million BNB. Due to the fact that demand will grow, and the number of coins will fall, the price of an individual token will inevitably soar.

According to the plans announced, Binance expects to spend 1/5 of the income received per quarter in order to buy out the cryptocurrency and burn it. It is important that, unlike some other projects, the management of the exchange does not pull and quickly move from words to action. After the launch of the exchange in the first working quarter in the fall of 2017, Binance honestly sent 20% of the profits to buy about a million tokens and burn them. This triggered an instant price increase. Subsequently, the operation was repeated strictly according to the plan.

So the developers of the coin ensured the operation of a mechanism that carries out deflation and promotes the growth of the rate of BNB in ​​the future.

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Binance expansion

In addition, in 2018 Binance concluded a number of partnership agreements with the governments of Taiwan, Malta, etc. The goal is to create new trading platforms so that everyone can buy and sell crypto assets on a secure exchange in comfortable conditions. For example, a branch in Malta should allow EU residents in the legal field of the European Union to trade digital assets, exchanging them for fiat currencies, including the euro, etc.

Binance Coin price prediction 2019

Binance Coin Price Prediction

Further prospects for Binance Coin in 2019 will depend not only on the steps of the creators of this coin but also on the actions of the Chinese authorities to weaken control over the development of cryptocurrency technologies.

Therefore, it is difficult to give accurate predictions on the direction of development of the coin due to its youth and the presence of hidden factors affecting its growth.

The BNB coin is able to show the growth of capitalization thanks to the support from the parent exchange, which is popular among investors and cryptocurrency traders.

Also, do not forget that the cost of a coin depends on the volume of daily trades with its use. The volume of day trading using this asset reaches $1.3 billion, and this figure is constantly growing.

Therefore, investors predict the rate of BNB at $25 per coin.

Binance Coin price prediction 2020 and beyond

The long-term forecast is based on the study of current price trends and technical analysis. The prediction of BNB assumes the achievement of the following price levels for 2020-2025:

  • In December 2020, the average cost is expected at $33

  • By the end of 2021 – $41

  • By the end of 2022 – $49

  • At the end of 2023 – $52

Binance Coin long-term prediction

One more forecast, based on the theory of cycles, predicts an increase in the token price in the next 5 years by 1500-2000%.

BNB summary review

Binance Coin has the prospect of growth, which is largely due to the success of the trading platform itself. The exchange management showed that they understand the needs of traders and investors, so there is no doubt that further actions will help expand the influence and strengthen the position of the trading platform and the BNB token.

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How to Learn Solidity and Start Blockchain Programming

  • Eric Croix
    📚 WikiCoin

    If making an Ethereum-based dApp or creating an ERC20 standard token sounds compelling to you, than you need to learn the language called Solidity. In our tutorial we provide you with the foundation of coding smart contracts


How to Learn Solidity and Start Blockchain Programming
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Blockchain programming has become one of the best paying and challenging software spheres during the recent decade. Although blockchains are language-agnostic and many of the existing languages, like C++ and JavaScript (JS), are used by blockchain engineers, there are some tasks that couldn’t be conveniently realized by existing languages, which opened up the demand for new, crypto-specific options. One such language is Solidity.

Solidity was born as a core part of the Ethereum ecosystem. It absorbed C++, JavaScript, and Python. It has many contemporary features like libraries and inheritance. Solidity is designed to write programs that interact with Ethereum accounts, which are called smart contracts. Smart contracts are executed on Ethereum Virtual Machine (EVM), enabling users utilizing them perform tasks like crowdfunding, blind auctions, voting, and many others in a decentralized manner. The most famous killer-app of smart contracts was decentralized funding in ICOs, which started the bull rally on the crypto markets in 2017.

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Whether you are an experienced developer or just starting out in crypto, it’s a good idea to start learning Solidity because smart contracts have become a crucial part of the blockchain ecosystem. Aside from being actively implemented by dApps, they are being actively integrated into infrastructure-layer blockchains and even in Bitcoin via providers like RSK. By knowing how to build smart contracts you will make your blockchain career more sustainable and be able to produce better quality solutions. Let’s not pull it off any longer and get our hands dirty with coding!

Understanding the basics of a smart contract

A smart contract account consists of three sections: balance, storage, and code. The balance represents how much Ethereum a smart contract has. Storage holds data like strings and arrays that are specific to an application. The code section has the raw machine code that is compiled from what we write in Solidity.

Unlike user accounts, smart contract accounts are not external to the respective networks. In other words, you can use your wallet with various networks like Kovan and Ropsten, but you can’t do this with a smart contract. Smart contracts are internal.

Each smart contract has a source, which is stored on an author’s device and instances, which are stored on the blockchain. In order to create an instance (account) of a smart contract, we need to deploy it to the network. It very much resembles the relationship between classes and instances in traditional object-oriented programming (OOP) and languages representing it (JS, Ruby). To give you a more visual representation, let’s create a class ‘Bike’ and add an instance of it.

Bike class & instance

Bike class & instance

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What we will be writing is a contract definition, which will then run through a compiler that will produce two files: bytecode and application binary interface (ABI). Bytecode is what will be actually fed to the EVM and ABI is a layer between bytecode and regular JavaScript code that allows building a user interface (UI).

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Choosing an IDE & version of Solidity

Before we start, we need a proper integrated development environment (IDE). In other terms, we need a convenient terminal with the necessary tools to write our code in. For the purposes of this tutorial, we will pick Remix, an IDE created by the Ethereum foundation that allows writing, testing, debugging, launching smart contracts and many more. You can use it either straight in the browser or download it locally if you would like.

Once you launch Remix, you will be presented with the code editor in the center, the file manager on the left, and a compiler on the right.

Initial Remix window

Initial Remix window

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There will be some pre-written code – we won’t need that. To create out first-ever smart contract let’s press on the little plus icon in the top-left corner of the terminal and give it a name.

Creating a new project in Remix

Creating a new project in Remix

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As we have the blank .sol document now, we should specify the version of Solidity that the compiler will run. At the time of this tutorial, the latest version is 0.5.7. If you are not sure which version to use, you can specify a range of versions.

2 types of specifying the version of Solidity

2 types of specifying the version of Solidity

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Lastly, let’s give our smart contract a name, followed by a parenthesis.

Smart contract naming

Smart contract naming

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Writing your first smart contract

Once we have our canvas ready, it’s time to define the basic building blocks – variables. While experienced software engineers will have no issues understanding this concept, we will briefly introduce it to beginners. Variables are placeholders for chunks of information that are later referenced by a program that runs them.

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Let’s create a couple of variables: a string (a sequence of symbols) and an integer (a number). In Ethereum’s case, variables are stored in the blockchain along with the rest of parts of contracts and can, therefore, be accessed and updated from anywhere. Another key characteristic of Solidity variables is that you can make them private by writing ‘private’ next to the variables. Finally, for the integers, Solidity has two types: signed (can be positive & negative) and unsigned (can only be positive). To specify an unsigned variable, we should just put ‘u’ before it.

A private string and an integer

A private string and an integer

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Once we have the ‘name’ variable, we need to write out the methods of setting and getting it. This looks like a JS function. Remember that Solidity is statically typed, so we have to define variable types. Now any value we put in the ‘setName’ will define the ‘name’ string. For the getter, we will use ‘getName’ and specify what variable we expect to see. Now, it’s time to do the same for the ‘age’ variable. The method is constructed similarly to the ‘getName’.

Name/age setters and getters

Name/age setters and getters

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Let’s test our little chunk of code. Go to the ‘Run’ tab of the compiler and press ‘Deploy’ under your contract’s name. At the very bottom of the compiler, you will now see the ‘Deployed Contracts’ section that has our methods available. In order to pass a name to the ‘newName’ value, we need to make sure that our string is written in JSON, otherwise, the ‘getName’ will return nothing. For the ‘setAge’ just put your age without quotes. As you see, we can now set and receive the ‘name’ and the ‘age’ variables through our smart contract.

Compiler, with a name and an age

Compiler, with a name and an age

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Defining Wei and Gas

One of the most remarkable features of smart contrasts is that to deploy them to the Ethereum network you will need to initiate a transaction, which costs some amount of money that is paid in Ether. It’s crucial to understand how the fees are utilized in the system, as they will be deducted each time you interact with EVM.

What’s Wei?

Let us assume that reading this far into our tutorial you have used Bitcoin at least once. You probably made a small transaction that was way less than 1 BTC. In that case, you used Satoshis, which are something like pennies for a dollar. Wei is like a Satoshi – it’s the smallest part of 1 Ether. If we think of it in programming terms, it’s the lowest unsigned integer in the network. While interacting with the network, you will mostly encounter Gwei, which refers to Gigawei and equals 1 billion Wei.

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What’s Gas?

Gas is an essential part of the mechanism of smart contract execution. It has two values for each transaction: Gas consumed and its price. It’s worth mentioning that a user initiating a transaction defines these values. However, if the set value of Gas won’t be enough to process a specific operation, then the Gas will be consumed, but the transaction will fail. Moreover, if the price for Gas will be set too low for the network at a given time, the transaction will not be processed by the nodes, eventually making it unsuccessful. There are several services to check optimal values for your transactions, one of them being ethgasstation.info. To get a better understanding of Gas and why it costs any money, let’s code some of it by ourselves.

Get back to your Remix window and initiate a new file. In our example, we will call it ‘Gas’ and create a contract with the same name. Bear in mind that the more data we will require to store on the blockchain, the more Gas we will need. That being said, for the purpose of this tutorial we will create a cheap contract; the more you will add to it, the higher the fee will be.

There will be a function that returns an integer that is a sum of two inputs. To make it as lightweight as possible, we will specify that our contract will store nothing on the blockchain, and for that we will put ‘pure’ next to the function.

Cheap contract

Cheap contract

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Now you can deploy it in the compiler and input any two numbers to get the integer ‘c’. To check the price of our transaction we should take a look at the terminal located beneath the code section. There is a transaction cost and an execution cost. The first one refers to how much data a transaction has. The second one refers to how much of EVM’s power was required by the transaction.

Cheap contract’s cost

Cheap contract’s cost

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This is an extremely basic transaction that costs almost nothing for the network. In writing meaningful smart contracts you will add more details, which will increase their weight and therefore transaction fees.  

Creating & deploying your own ERC20 token

Let’s face it, the majority of the blockchain developers that are just starting out are eager to play big and create their own blockchains and tokens. While this is an extremely difficult topic that attracted some of the best software engineers from other spheres, building a basic ERC20 token isn’t rocket science.

First, we need to create another file in Remix and uploading the ERC20 interface, which is the following:

ERC20 standard

ERC20 standard

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The ‘totalSupply’ function lets us see how many tokens we have in total. The ‘balanceOf’ function is used to get amounts of tokens on specific addresses. The ‘transfer’ function allows users performing transactions between each other. The ‘transferFrom’, ‘allowance’ and ‘approve’ functions are there to allow people to let some other users initiate transactions on their behalf. Events are the logging tools for the ledger.

In addition to the interface itself, we will need a separate .sol file for our new token. Here we will import the ERC20 interface and specify our token’s symbol, name, and decimals.

uToday token

uToday token

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Before we compile it, we need to specify constraints.

  • Let’s start with the total supply – it’s a constant integer variable that we will make private. The total supply of our tokens will be 1 million, we also write a function to return this value.

  • Second, we need to store our token somewhere. For this, we will need to outline the mapping that will return a balance for any address specified.

  • Third, there should be a function for token transfers, which will essentially have an address of a receiver and an amount of token transferred. This function should also be able to check whether or not a sender has enough tokens on their balance, which can be realized through a simple if/then statement. In addition, we will set conditionals for ‘_value’ in a way that blocks users from sending transactions with 0 tokens as this would only flood the network with junk.

  • Fourth, we should create the mapping for the remainder functions, which is a mapping of mapping to an integer.

  • Then we will specify a few checkers in the ‘approve’ and ‘allowance’ functions and put conditions for the ‘transferFrom’.

  • Finally, not all the tokens will be available on the market. Some of the tokens are usually left out for teams, foundations, advisors and other purposes. Hence, it’s essential that we make it clear how many tokens will be circulating. As we created the tokens, the circulating supply equals our balance.

uToday token constraints

uToday token constraints

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The code is ready, so let’s test it. Proceed to the ‘Run’ tab of the compiler and deploy our token contract. You will see that we have our token data along with the total supply, balances, and allowances. Congratulations, you deserve a pat on the back!

To make our token actually function on the network, we need to deploy the smart contract (note that this is different from deploying it for testing in Remix). For the sake of this tutorial, we will use Remix and Metamask, but there other ways of doing so. Metamask is a simple but efficient Ethereum wallet program with a nice UI that integrates as an extension to some of the most popular browsers. In our case, we will use Opera. Firstly, go to metamask.io and download the extension. Once it’s done, you will see a fox icon in the top right of your browser.

Downloading Metamask & location of the icon

Downloading Metamask & location of the icon

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Press on the icon and proceed through the offered instructions to create a wallet. Do not forget to store the secret phrase! When you have your wallet, press on the Metamask icon and change the network to ‘Ropsten’ because we don’t want to mess with Ethereum’s mainnet.

Changing Metamask to Ropsten

Changing Metamask to Ropsten

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The last step is to generate some Ether (unfortunately, you won’t be able to use these for any real purchases, but they are necessary for testing). Head over to faucet.metamask.io and request 1 Ether.

Now you are all set. Return to your Remix window and change the environment to ‘Injected Web3’ in the compiler. Take a look at the account tab too – your address should be the same as that of what you generated with Metamask. Select the smart contract you want to deploy, which is your token contract and not the ERC20 interface and press on the respective button. A Metamask window will pop up with a transaction, its details, and options to interact with it. Submit the transaction, and our token will come into life.

Metamask popup

Metamask popup

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You can now play around with all the functions we specified earlier. Let’s look at our contract from another side to verify that it works properly. Like any other blockchain, Ethereum has multiple block explorers which serve the essential purpose of monitoring what’s happening on the network. In our case, we will stick to etherscan, though there is a handful of other great alternatives. Note that if you just go to etherscan, you will see the Main network. As we need to see the Ropsten network, you will need to put ‘ropsten.’ before the website’s address. Search for your address and you will see two transactions – one is for free Ether you received, and another is for deploying the contract.

User’s address in Etherscan

User’s address in Etherscan

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To find the address of your contract, press on the TxHash and navigate to the ‘To’ field. Here you can check your smart contract’s transactions, code, and events. At this point, we need to verify and publish our contract. Go to the ‘Code’ section and click on the ‘Verify and Publish’ link. Here you will need to again specify the name of your token, the version of the compiler (in our case the latest version of Solidity we used was 0.5.7, so we will stick to the related compiler version). Now you should copy the token’s smart contract code along with the ERC20 interface code from your Remix window to etherscan and press ‘Verify and Publish’ at the bottom of the screen.

Verifying the smart contract

Verifying the smart contract

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It’s time to go back to your contract’s address. The code in the ‘Code’ tab will now be verified. In addition, you will now have two more tabs: ‘Read contract’ & ‘Write contract’. In the reading section, we can check the functionality of our token. Input your (not the contract’s) address into ‘balanceOf’ field to see how many tokens you have; it should show 1 million that we hard coded as the total supply and gave it circulating to our wallet. That means that our token is now correctly working on the testnet.

Receiving the balance

Receiving the balance

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Summary

If you are looking to start a career in the crypto industry, you need to understand that despite its relative simplicity in basics, blockchain has incredible deepness to it. Since 2017 blockchains have evolved significantly and their use cases went beyond just financial transactions. With the advent of Ethereum, a whole new layer of networks appeared that hosts various dApps and blockchain-based solutions. The tool behind this evolution was a smart contract, and if you want to make your experience more valuable and future-proof, you should know how one works.

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While you can code smart contracts using other languages, Solidity is a better fit for such a purpose. Moreover, if you want to become an Ethereum developer, or create an ICO/ERC20 token for your project, this is your go-to choice. If you had some experience with C++ or JavaScript, coding on Solidity should be relatively easy. You will have to understand some differences between the client-server and decentralized models of launching software, though. Thanks to Ethereum Foundation and some third-party organizations, developers are presented with a set of convenient tools like Remix and Etherscan to code and deploy smart contracts.

We hope that our tutorial helped you with getting around the majority of Solidity’s concepts to be able to start your blockchain journey. Remember that you can always check with the latest documentation on Solidity. We wish you good luck and will be happy to use some of your dApps someday!

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