Who Moved $1B in Bitcoin? Stablecoin Frenzy, Quantum Resistant Crypto | Crypto News

Hey everyone. Today we've got stablecoins, we've got gold, we've got our boy Eric Crown, and somewhere in a quiet corner, the NSA is making quantum resistant cryptography. Everything just seems to sound cooler with quantum in its name, doesn't it? This is the cryptocurrency news with Giovanni. Stablecoins are on the menu for today. Binance has partnered with digital asset trust company Paxus to launch a USD backed Stablecoin called Binance USD or busd. The Stablecoin has already received approval from the New York State Department of Financial Services and will be available for direct purchase and redemption on the Paxos platform. At a 1:1 ratio to US dollars, this may not be the most exciting news in the world. I mean, we are talking about stablecoins after all. But it showcases Binance's ability to work within the US and particularly the New York regulatory system, which is not something many other companies are able to do effectively. Paxos certainly has experience working with the US regulations, as we'll see in a minute, so the partnership appears to be a fruitful one. It will also be interesting to see if Binance's Venus project will be able to navigate regulations with the same ease. Speaking of Paxos, I've got some good news for all you gold bugs out there. Paxos has received approval from the New York financial regulators to launch a new gold pegged ethereum token called called paxgold. Each PAXG token will be packed to a physical ounce of gold stored in a London vault. Essentially, this allows you to own gold without having to pay a custody fee and gives you the ability to send it around the world at any given time or any given day. This is clearly a move to bridge the gold and crypto markets. And I don't know about you, but I'm curious to see how this bridge holds up given the ongoing competition between the two markets. The new Stablecoin also aims to solve gold's biggest problem, which is the fact that it exists physically. I mean, just imagine trying to lug a pile of gold through, say, airport security. Doesn't sound like much fun, does it? Well, with Paxg, you can trade and hold gold directly without ever needing to even see it. Best of both worlds, maybe. This could also finally make Mark Mobius happy. In an interview yesterday, the founder of Mobius Capital Partners. If there is a cryptocurrency that is really backed by gold, and that is there is meaningful agreement and some kind of modern thing of this connection, then this could be quite interesting. Well, Mr. Mobius, your query may be answered in a very timely fashion with the arrival of paxg, so be sure to keep a close eye on this progress. How do you guys think this gold backed crypto will affect the crypto and gold markets? Crypto activist Joe Kernan offers another perspective by pointing out that there aren't really any fiat currencies that are backed by gold. So why would a crypto need to be backed by gold? Would it accomplish anything more than just linking the two markets? I guess the heart of the issue is how far does our faith in the global economic system, be it bank fiat or blockchain, really go? Where does your faith lie? In the physical, virtual, or somewhere in between? The U.S. national Security Agency is working to build a quantum resistant crypto, but it might not be in the way that you think. Even though quantum resistant crypto sounds dope, the crypto bit actually stands for cryptography, not cryptocurrency. Still, blockchain technology is fundamentally based on cryptographic technology, so this could certainly impact our current systems. So what exactly is quantum resistant cryptography? Well, first we need to talk about quantum computing. Without getting too technical, let's just say that if quantum computers are ever fully developed, they would enable a drastic increase in computing speed and capacity. This could potentially render the security aspect of blockchain technology as useless. In fact, quantum computers could be so powerful that they would be able to unwind the encryptions that protect private cryptocurrency keys as they pass through the Internet. Apparently, NSA officials are concerned that quantum computing might eventually represent a threat to US national security security. I know that sounds scary, but let's not panic. At least not until quantum computers are invented. Something big is moving on. The Bitcoin blockchain. $1 billion worth of Bitcoin were moved to a single wallet on September 5th. The sender paid a transaction fee of $700, which isn't exactly pennies and dimes, meaning he probably wanted the transaction to be settled as fast as possible. According to some theories, the transaction was related to Bakkt, which starts accepting Bitcoin deposits on its new platform, Bakkt Warehouse. Today, this platform will be the custodial of the long awaited Bitcoin futures contracts which will launch on September 23rd. Bitcoin futures will enable physical delivery of Bitcoin instead of cash when the contracts close. We reached out to prominent crypto trader and YouTuber Eric Crown to help understand why the backed Bitcoin futures are an important turning point. Hi Eric. Explain, please what is the difference between physical delivered and cash settled bitcoin futures?

Right. So physically delivered means that at expiration the holder is essentially going to not be paid in cash, but in actual bitcoins. So that means that bitcoin stays in the market. Now a lot of people will kind of argue that that's a huge difference and yes it will, it will make a difference from, from just regular cash settled type type settlements. I suppose you could because this market doesn't operate in a vacuum because every, you know, everyone's doing arbitrage and on all these different exchanges the actual effect in reality probably won't be too much more noticeable as any time that someone's trading on CMEs, for example, which are cash settled, they're going to be, they're going to be arbitraging or essentially market against some other index on bitcoin. So they're always pointed in somewhere else and measuring things off bitcoin to begin with.

Okay, and what kind of impact will backed bitcoin futures have on bitcoin price?

And the space in general bakked is, you know, is kind of a big deal. Again, just another, another more institutional grade venue offering offering. Bitcoin trading essentially makes it easier for people to get into it. So by that metric, yes, you know, just ease of access increases, barriers are kind of shut down or brought down a little bit. We have more people trading.

Thank you Eric. See you next time. Also guys, let's check how smart or lucky you are. Post your best guess for what the bitcoin price will be on Monday, September 9th and at 7:00am Eastern Time the closest answer will win $50 worth of credit in our merch store. Post your guesses in the comments below. We will only accept comments posted before midnight on Sunday. And remember, only one guess per person. And for those who are less lucky, go check out the store and enjoy a 30% discount with the promo code in the description below. This has been Giovanni with the Cryptocurrency news. Always remember to like subscribe and Hodl cointelegraph Like subscribe and Hodl.