Binance Coin (BNB) and Cardano (ADA): The Confrontation Is Aggravated

Binance Coin (BNB) and Cardano (ADA): The Confrontation Is Aggravated

Source: Coinmarketcap

A Bitcoin (BTC) bounce shouldn’t fool anyone. The growth of the king of cryptocurrencies is slowing down, the bullish trend ends. Investors are looking at altcoins again.

At the end of 2020, most experts predicted high altcoin activity in 2021, altcoin season. But so far, bitcoin is the market maker. However, even the largest cryptocurrency has proven vulnerable to rumor and verbal intervention. The increased volatility in BTC in the past two weeks is the result of rumors of a possible bitcoin ban in India and the United States. And the rebound of bitcoin is the result of criticism of such a decision from the side of analysts. In particular, the head of the blockchain company HashCash from Palo Alto, Raj Chowdhury, said that banning bitcoin in India would do the same harm to the country’s economy as abandoning the dollar. The expert analyzed in detail the consequences of the prohibition of cryptocurrency and came to the conclusion:

– Rejecting the crypto as an asset class may have many grave implications. Maintaining Cryptocurrency reserves are as important as maintaining dollar reserves. By banning crypto, India will end up with the lowest reserve of the most important currency the world has ever seen. This would eventually lead to a currency devaluation of the worst form.

However, traders and investors have been chatting about the signs of a bull rally slowing and options for investing in altcoins for several weeks now. The competition between Binance Coin (BNB) and Cardano (ADA) for the third place in the Coinmarketcap ranking attracts the most attention. Cardano is attractive due to its functionality, and some big funds invested in it. But BNB is backed by the power of the leading crypto exchange Binance and the indomitable CEO CZ. Experts note that the ambitions of both projects extend further than the 3rd rate, both coins intend to move down the leading altcoin ETH from the second rate.

Cardano offers an alternative to Ethereum as a smart contract platform with very cheap and fast transactions. It is expensive transactions that slow down the development of decentralized finance (DeFi) on Ethereum. Input Output Hong Kong (IOHK), the developer of Cardano, says the platform is ready and developed in the new fault-tolerant language Haskell. However, DeFi projects have not yet been launched on it.

The Binance team also offers an alternative to Ethereum in the form of their Binance Smart Chain (BSC). Its advantages are the same: cheap transactions and high speed. Some DeFi projects have been launched on the platform, and some of them are profitable. For example, Swirl Cash (SWIRL), which brought over 300% ROI to investors.

In addition, CZ apparently sees regulatory uncertainty as a weak point for cryptocurrencies, especially in the US market. To avoid problems from this side, he invites experienced specialists to the staff. Former Senator Max Baucus came to Binance earlier to liaise with financial regulators. Now former FATF (Financial Action Task Force) executive secretary Rick McDonell and Canadian FATF head Josée Nadeau joined the team. They will be consultants on the development of anti-money laundering systems.