You are right BNB is one of the cheapest networks, and another alternative is Matic on the Polygon network. I mostly use this network and BNB to make transactions. I also have not made any transactions on this blockchain's network because if we make this transaction, then our BTC will not be on the BTC blockchain anymore and they will be pegged with BNB.

And if BNB goes down, then things might go down for BTC as well, so it is better to make transactions using BNB blockchain, but then we are still able to send the same BTC from the BTC or LN blockchain network, which means if we send BTC from one exchange using the BNB network to another exchange, then we can send BTC from the other exchange to the first exchange using the BTC or LN network, which also puts me in more confusion, but I think giving it a try will solve the problem.

It is a solution but not to avoid high transaction fees, the nature is altcoin not totally bitcoin. So when you move your bitcoin to binance, it is real bitcoin but when you start moving it to other network like Binance smart chain (BSC) your bitcoin will be pegged, so technically it won't be Bitcoin anymore... this solution is just to fasten transfers but using other network and pegged tokens.

It is expected to be higher in coming days, we know it is bullish and the volume is getting higher, you should know that if you want to transact with lower fees, the time is now. As you have said, you're not sure when it will go down, perhaps that right there when you need to decide. We don't know how long, but I'm pretty sure it'll take months. However, I'd say you can keep holding your bitcoin coz we are near in the exciting part of the market.

There are a lot that is in and going on in crypto that you wouldn’t know about and there isn’t anything wrong and out that. Just having an open mind and be ready to discover in bits what might be of help or not is how you learn. Be it as it may;

Using the BNB Smartchain isn’t something entirely strange to me but as something I’ve happened to use, not at all. You might want to note that, this exists only on exchanges and that speaks volumes of centralization, it is an altcoin and is liable to effects as associated with the BNB Smartchain. That makes it not a best option when running Bitcoin transactions and don’t look towards storing your precious Bitcoin on altcoin blockchains all because of low fees, it could spell disaster at any minute.

Bsc chain has existed for only a few years and people are looking at it as a form of centralised chain because its based on PoSA. It is believed that BSC is not truly decentralised and thus does not stand in tanderm with what Satoshi envisaged the financial system through Bitcoin to become.


There are also concerns over security and Maxis will never consider an altcoin network to function in the capacity of Bitcoin.

Lastly, not every platform that enables Bitcoin transactions has BSC network as an option.

These are the challenges people tend to see more than they see the transaction fees.

And FTX was a prime example to see how opaque the financial situation can get when the company actually presented one of their creditors with one out of seven different balance sheets because that was looking the best. It is similar with stable currencies. I have looked into them and Binance claims to have it all backed with various "risk-free" assets etc., but the truth is that nobody can really verify it.

I think all of this would become much worse with additional forms of derivatives like IOUs. At some point the exchange themselves doesn't know anymore what their own financial situation looks like because the derivatives exposure is too high and too complex to conduct reasonable risk assessments and provide accurate numbers. This has been the same during the financial crisis when the complexity of the derivatives for mortgage backed securities got out of control by magnitues higher than the bank could ever cope with. It took them years to find out who is actually responsible for what because derivatives and repackaging can lead to cascade effects that are beyond the control of those companies.

For that reason alone I would be very careful parking my precious crypto assets in BTC IOUs on the BinanceChain. But you summed it up well in the second part of your post: if someone is really only after trading back and forth, the cost vectors probably outweigh the risk vectors.

Bitcoin on binance chain or any other chain ain't no bitcoin. It is an altcoin which (usually) has no history. If you are going to use alts (which makes sense in the current situation btw), at least use the alts which have very good track record like doge, ltc, xmr... These are cheap and relatively reliable alternatives. If you insist on using them wrapped bitcoins, you may get fooled thinking it is the real deal because they also use a different type of deposit/withdrawal address and if you somehow send your coins to those addresses you will lose your coins forever. Take no risks.

No, you can only send BTC on the BTC network, the BSC network is a different network and is not compatible, so you cannot send BTC from your Electrum wallet to wallets that support this altcoin pegged to BTC, because it is a different network.
This is not a solution to the problem of high fees in the BTC network, this isn't even BTC, but an altcoin on a different network. If you are using it, you are using an altcoin and there's no way that is solving BTC's scalability problems.