Do you love Binance BNB or are you a fan of Ethereum hating its guts? Fact is BNB is now the 3rd largest cryptocurrency and if you look at BNB vs ETH, there’s been
a dramatic change in power since February So who is right and who is wrong? Is BNB and Binance Smart Chain a fad and Ethereum Layer 2 solutions
will kill off the copycat? MetaMask Layer 2 integration is here.
Uniswap v3 is coming. Or is this just the beginning? We will answer this. And… was I right in my previous
video about Binance BNB at $29? Let's head back to the studio and find out! That video is EVEN more relevant today, so let’s first watch it and find out. Since Binance BNB hit 18 dollar support, price shot up 85% in 9 days, in a flat market. Probably a result of Binance Smart Chain that
launched now in September. Everyone has opinions about CZ and Binance. Is he a centralized scammer, the very anti thesis of crypto, stealing God's work from Bitcoin and Ethereum? Or is he building the future, bringing adoption, making the complex easy to use for the masses? I'm CTO Larsson. Let's find out! First let me explain something which most
people say they understand, but in reality they don't. Oh look! Here is some kind of invention! It has four wheels and it
can take you from A to B. Oh look here's another one.
It's white. Oh here's a big one. And neither of them is a Ford. Or take Microsoft. If you haven't heard of them, they make some
software which your uncle is using. They had as corporate strategy to be 2nd mover. Let somebody else figure out what people want,
and then you try to execute better on that. Or take these. We coined the term Smartphone at Ericsson,
but it was Apple who made the first one that was good enough. You don't have to be the first to become the
most successful. There is no value in the idea in itself. A bad idea will make it impossible to succeed,
but a good idea isn't enough. Why? Because all good ideas will be copied. It's the execution on that good idea that matters. And who is executing the best in crypto? I'd say it's Binance, reacting to demand and getting things done. 1,500 employees and can still move fast. That 2nd mover strategy. When I first posted
it, many said that was ridiculous.
Well. Now you see. Turns out it was pretty
powerful to be the second mover at lower cost. Let's look at the BNB/USD chart first. Perfect touchdown at support at $18. Then smashed through this $27 resistance that
we couldn't cross in February. Then there is very little resistance here
until ATH of $40. I hope that video helped you
to see what I saw at the time. Now with BNB at $265, that’s
a 9x gain for you, if you did. If you missed it, make sure to subscribe. And BNB/BTC chart is even more interesting. Again, touch down on support. Always expect a little front run. Then smashed through both the .0023 and .0026
supports like butter, taking out these two tops here. Then you got a perfect retest of that support
today, so if you were late to this one and wanted
to buy on the retest of the breakout, that is it.
As you will see in the next video, that .0044 line I showed there on the BNB/BTC chart, is the exact same line we will use to analyze what will happen next. TA works guys. But actually I'm taking an ever bigger perspective
on this. 4 point something billion market cap. ETH is 40 billion market cap. Over time I think there's still room to grow
here relative the market. And let's look here at the transaction volume. It's 400k vs 1000k. That's quite astonishing just after launch. I hope you see the value I can give you. My whole old channel is gone, so you subscribing again is really
important and it’s really helpful for me. Please press the subscribe
button and the bell right now. Thank you! So I actually tried Binance
Smart Chain here today. If you haven't already, first you install
the MetaMask extension. Make sure you get the right one.
Let's create a wallet here and then you have to set the MetaMask extension to the Binance Smart Chain
instead of the Ethereum network. Then you click here, you select Custom RPC. BSC Mainnet and then you take this string here, I took
it from this address. ChainID should be 56 (*better: 0x38) Symbol BNB Block Explorer bscscan.com Ok now we're connected to BSC Mainnet instead
of Ethereum. Then if you go to binance.com, the usual exchange
not the DEX Open MetaMask, copy the address. Then we withdraw to that address and select
BEP20. Ok, I understand. We withdraw a tiny amount here, just to test. Then look here, this bscscan looks exactly
like etherscan and we can see here we received the BNB. Then I'm going to do some food yield farming
When I made that video I was among the
first to use BSC Binance Smart Chain. CZ tweeted my video and wrote “Awesome video tutorial
about Binance Smart Chain." There you see the value of trying
to be early on new technologies. See for yourself if it’s good or not. I'm just going to play around with pennies
to show how the Binance Smart Chain works. So let's connect to the wallet. We have to approve that here. Ok, connect. And we're connected. Then we're going to need some of these coins. Let's try to swap a tiny tiny amount to this
Bake coin. All-right, it's updating here. … is staked. This was my quick test. It cost a few cents each time, each transaction and I'd say each transaction took between
5 and 10 seconds and it looked exactly the same as when doing
this on Ethereum, only it's faster and cheaper, though there were a few failed transactions.
I don't know why that is. What this is, it's an Ethereum code compatible
separate blockchain. So Binance Smart Chain BEP20 is not the same
blockchain as Binance Chain BEP2. They are two separate blockchains optimized
for 2 different use cases, but you can send BNB between them, so that's the connection. Then you have those BNB either on Binance
Chain BEP2 or Binance Smart Chain BEP20. Binance Chain BEP2 is optimized for building
a DEX, which is this one. Then there is 1 block finality always, but
you can't run smart contracts. Binance Smart Chain means you can take your
existing Solidity Ethereum smart contract code and run it here instead. Then gas cost is lower, speed is higher, because
this isn't Proof of Work. This is a combination of Proof of Authority,
where you, as an individual or company basically stake your reputation and then these validators are elected based
on a Proof of Stake mechanism, where you stake BNB.
So could be argued that it's a little less
decentralized, but it's a lot cheaper and a lot faster than ETH 1 of today. So we concluded there is
little value in being first, but there is value in a network effect,
a user base of developers and creators and right now that community is on the Ethereum
network. In terms of numbers, they are not on BNB. They are not on Tron. They are not on BSV. They are not on any of the other Ethereum killers. They are still on the Ethereum network. The question now is if Binance can get these
people over. Technically it is trivial, because the written
code already runs. What Binance has, is being Binance. They have the millions of eyeballs, the big
trading volume opportunity.
The challenge I talked about
at the end: The community. Have developers moved from Ethereum to Binance. Well, to some extent maybe, but
that challenge is still relevant. I think this will be very interesting to see
how it plays out. I am impressed. For clarity, this is not a paid video and
I'm not advising you to do anything. I'm just sharing my own findings, with the
hope that you find it useful and educational as input to your own research.
Part 2 will be forward looking from here. If it’s already published
when you are watching this, I will link it here. Otherwise subscribers will get the notification when it’s out later this week. CTO Larsson out. Hej då! Hej då! [ I said, baby, just hold on! ].