Crypto continues to move forward with Bitcoin comparisons to gold, stablecoin drama, a Binance partnership, and developments in blockchain’s impact on supply chain — all while Bitcoin attempts to break out. Here’s today’s action!
Why Bitcoin Is Better Than Gold
Bitcoin was explained as better than gold today, in an article stating – “Bitcoin is money. And though it is still young, it is reshaping how money is viewed. It is a response to a broken system, and as the perspective of money evolves, it will play a significant role in the future of currency”.
The U.S. dollar was formerly pegged to gold, giving the dollar backing. However, that backing no longer exists. Bitcoin does not technically have any backing either but is free from centralized government authorities. Bitcoin also has far-reaching potential, based on its technology.
Stablecoins All Want To Be $1, But They’re Not Worth The Same
Extreme stablecoin competition has arisen lately while Tether (USDT) suspicions are on the rise. Suspicions that Tether does not actually have the required backing amount in USD to provide a 1-1 USD backing. These include PAX, USDC, TUSD, and GUSD.
The point of stablecoins is to have a pegged value of 1-1 to the U.S. dollar. But the problem lately is the spread of value among these options, spanning from $0.98 to $1.09. GUSD even saw a price of $1.19 at one point.
3 Hurdles Could Complicate Bitcoin’s Price Recovery
Bitcoin, the godfather of the crypto world, has seen a tough year, with prices possibly looking to break out soon. Bitcoin faces a multitude of resistance levels before a break out can be confirmed. (Resistance levels refer to the technical analysis of charts, and price points that indicate a difficulty for the price to move higher).
Ultimately, a price break above $7,402 is the goal for a change in price trend. But Bitcoin needs to break through price resistance at a key level of $6,823 before that.
Binance Increases Crypto Anti-Fraud Measures With Chainalysis Partnership
Dominant exchange Binance announced a significant partnership today with a research business called Chainalysis. Chainalysis provides a simpler way for Binance to trace transactions on its exchange.
Chainalysis’s method is called Know Your Transaction (KYT), which appears to be played off the popular regulatory identification practice of Know Your Customer (KYC).
CoinTelegraph reports that “’Cryptocurrency businesses of all sizes face the same core challenge: earning the trust of regulators, financial institutions and users,’ Jonathan Levin, co-founder and COO of Chainalysis commented in the press release”.
Chainalysis also aims to help with Anti-Money Laundering law regulations with its tracking system.
Rwandan Government To Use Blockchain Tech To Track Conflict Metal Tantalum
Tantalum is an important mineral utilized in devices such as computers and phones. “Rwanda is the world’s leading producer of tantalum” as reported by CoinTelegraph.
The Rwandan Mining, Petroleum, and Gas board joined forces with a company called Circulor. They will use blockchain technology to help the supply chain process with transparency for tantalum. (The blockchain allows for transactions to be highly traceable based on a public online ledger.)