Binance USD is a stable coin that can be traded on Paxos and Binance.com platforms. It is one of the three stable coins which is approved by US regulators. In recent times, BUSD is significantly going down. Let’s discuss what is a stable coin? Why is BUSD going down? What are future predictions regarding this crypto?
What Is BUSD?
In recent times cryptocurrency has marked its name in the financial market of the world. Now it is giving tough competition to the traditional investment markets like stocks, mutual funds, etc. There is a number of cryptocurrencies in the ecosystem in which a person can trade. BUSD is just another type of cryptocurrency. Binance USD or BUSD is stablecoin approved and regulated by the New York State Department of Financial and fully backed by USD. It was jointly created by Binance and Paxos which are two of the most trusted companies in the market.
It can be termed as Digital Fiat money and can be used for different purposes. It was created to integrate the blockchain system with the credible US financial system. One can use this digital currency for buying other tokens across blockchains. It can be used to purchase other goods and services. Like Fiat money, it also serves the function of a store of value.
Current Position?
Currently, BUSD is trading near $0.980 and is going down for the past 1 year. The reason can be many, normal push and pull of the market, lack of interest of the traders, etc. As a stable coin provides stability in cryptocurrency’s volatile market, it only provides only a small amount to traders as profit hence not very popular among investors who want a big share of profits instantly.
What is Stablecoin?
Stablecoin is a type of cryptocurrency which is more stable than other cryptocurrencies, as it is backed by assets like gold. It was created to maintain balance in the market. One can enjoy the benefits of cryptocurrency and actual currency jointly by using stable coins. By the time, its market share is increasing at a significant rate as at the end of 2020; its total share in the market was $20 Billion.
BUSD Future Prediction
According to current analytics, Gov Capital predicts that in the next year, BUSD will rise to $2.99 and it will cross the $10 mark in the next 5 years. This shows that people believe it to be the future coin. It provides stability of fiat money and transparency of cryptocurrency at the same time. It connects new blockchain technology with the old financial system. All in all, it has a bright future.
Where Can I BUSD?
You can Buy BUSD at Binance and WazirX, Paxos in India.
ADVISORY: Do your own research before investing in any cryptocurrency.
Stay with Global Coverage for More Updates