Binance Has a Major Pegging Problem
<p>One of the earliest criticisms leveled against Bitcoin when it started making the rounds in investment circles, was that it wasn’t “backed” in the traditional sense.</p>
<p>Why would anyone buy Bitcoin?</p>
<p>After all, Bitcoin isn’t a derivative of a commodity, not a lien on an asset, can’t be viewed as a mortgage on real estate, and it’s certainly not backed by the promise of a government.</p>
<p>Yet despite all of these criticisms, there has been no shortage of investors willing to plonk real sums of money to buy Bitcoin, presumably because there will is a finite supply and perhaps as a hedge against the largesse of government.</p>
<p>Whatever the investment case (or lack thereof) for Bitcoin, it’s hard to make a case that it’s “backed,” at least not in the traditional sense of an investable asset, although perhaps Raoul Pal will tell you that Bitcoin is “backed by electricity,” but that’s a discussion for another forum.</p>
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