BUSD (Binance USD) is a 1:1 USD-backed stablecoin issued by Binance (in collaboration with Paxos), approved and regulated by the **New York State Department of Financial Services (NYDFS) **Ad1. The BUSD monthly audit report can be viewed from the official website 2. Launched on September 5, 2019, BUSD aims to maintain the stability of the dollar with blockchain technology.
It is a fiat digital currency, issued as ERC-20 and supports the BEP-2 Ad1.
When will it reach 1 dollar?
BUSD is designed to always be equivalent to 1 dollar, so it should never exceed or fall below this value. However, due to market fluctuations and differences between exchange platforms, the price of BUSD may vary slightly from 1 dollar at certain times.
For example, at the time of writing, the price of BUSD is €0.906427 EUR, which is equivalent to approximately $1.01 USD 3.
When will it reach 10 dollars?
BUSD should never reach 10 dollars, unless there is a serious economic crisis or market manipulation that causes the dollar to lose its value. In that case, BUSD could lose its stability and its link to the dollar, and its price could rise or fall dramatically. However, this scenario is very unlikely, given that BUSD is 100% backed by reserves held in fiat cash or AD1 U.S. Treasury bonds
.
When will it reach 100 dollars?
BUSD should never reach 100 dollars, for the same reasons stated above. If BUSD were to reach 100 dollars, it would mean that the dollar has lost 99% of its value, or that BUSD has experienced strong speculation or fraud. Either way, BUSD would no longer be a reliable and secure stablecoin.
When will it reach 1000 dollars?
BUSD should never reach 1000 dollars, for the same reasons stated above. If BUSD were to reach 1000 dollars, it would mean that the dollar has lost 99.9% of its value, or that BUSD has undergone an even more serious manipulation or scam. Either way, BUSD would no longer be a valid and useful cryptocurrency
.
Is it considered a good investment? BUSD is not meant to be an investment, but rather a medium of exchange, a store of value, and a protection against the volatility of the cryptocurrency market. BUSD offers users the ability to easily convert their funds into digital dollars, without having to go through intermediaries or face long waiting times or high commissions. BUSD can also be used to access a variety of services and products offered by Binance and other platforms that support StableCoinAD1. However, this doesn’t mean that BUSD doesn’t have any growth or return potential. BUSD can benefit from certain advantages,
such as:
- Liquidity. BUSD is one of the most traded stablecoins on the market, with a daily trading volume of more than 2 billion dollars 3. This means that users can easily buy and sell BUSD without problems of slippage or scarcity
- The savings. BUSD offers users the ability to earn interest on their deposits, thanks to services such as Binance Earn, Binance Savings, and Binance Staking 4. These services allow users to lock in their BUSD for a period of time and receive an annual return percentage, which can range from ** 5% to 20% **4
- Diversification. BUSD can be used to access a wide range of products and services offered by Binance and other platforms, such as futures trading, options, stock tokens, fan tokens, DeFi, NFTs, and more.1 This allows users to diversify their portfolio and take advantage of market opportunities
of supply.
.
.
Price forecasts from 2024 to 2030
As we have seen, BUSD is a stablecoin that aims to maintain its value equal to 1 dollar. Therefore, the price forecasts for BUSD are based on the assumption that the dollar remains stable and that BUSD does not experience any significant deviation from its peg. However, there are a few factors that could affect the price of BUSD in the future, such as
:
- The question. The demand for BUSD depends on the popularity and usage of the stablecoin among users and platforms. If BUSD becomes more in demand, its price may rise slightly above the dollar, and vice versa. BUSD demand may be influenced by factors such as technological innovations, strategic partnerships, regulations, market trends and
- The offer. The BUSD supply depends on the amount of dollars that Binance and Paxos hold as reserves to secure the stablecoin. If the supply of BUSD exceeds demand, its price may fall slightly below the dollar, and vice versa. The supply of BUSD may be affected by factors such as BUSD issues and burns, changes in reserves, monetary policies, financial crises, and
- The competition. BUSD’s competition depends on the quality and reputation of the other stablecoins in the market. If BUSD loses its leading position or its trust among users, its price could be under downward pressure, and vice versa. BUSD competition may be affected by factors such as performance, innovations, regulations, controversies, and user preferences
user preferences.
fraud.
.
Taking these factors into account, we can try to make some price forecasts for BUSD for the coming years, also based on available sources5. However, these forecasts are indicative only and do not constitute financial advice. We always recommend that you do your own research and invest with caution.
2024: The price of BUSD may remain close to 1 dollar, with some minor fluctuations depending on supply and demand. BUSD could benefit from the growth and expansion of Binance, which could offer new products and services that use the stablecoin. BUSD could also face increased competition from other stablecoins, such as USDC, DAI, and Tether, which may seek to increase their market share and adoption. The expected average BUSD price for 2024 is $1.01 USD
.
Price prediction
| Anno | Expected average price of BUSD (in USD) | |
|---|---|---|
| 2024 | 1.01 | |
| 1.02 | ||
| 2026 | 1.03 | |
| 2027 | 1.04 | |
| 2028 | 1.05 | |
| 2029 | 1.06 | |
| 2030 | 1.07 |
As you can see, most forecasts expect the price of BUSD to remain close to 1 dollar, with some minor variations depending on the sources. This is consistent with BUSD’s goal of being a stablecoin backed by the US dollar. However, there are some factors that could affect the price of BUSD in the future, such as demand, supply, competition, regulations and economic crises. Therefore, it is always advisable to do your own research and invest with caution.