USDT - "May I stand unshaken Amid, amidst a crash of worlds."
Say the chorus of the melody "Unshaken" of the singer D'Angelo, the crash of worlds that we can see between the concept of Fiat currency, Cryptocurrencies, and the Blockchain technology in our modern society. Where our today main character, found the middle ground and its name is Tether.
Tether (USDT) is a controversial cryptocurrency, created to be a stable coin, that is, it's designed to be worth $1.00 always, maintaining $1.00 in reserves for each Tether issued. However, the audit over these reserves has always been a controversial matter, simmered by the New York State Attorney General (NYSAG), that discovered while building the case against Tether and Bitfinex Exchange (affiliated company) a hole of $850 million in Tether funds allocated in unpaid loans and seized by foregein authorities.
Despite all this controversy, legal tangles with enforcement laws agencies. Tether has been gaining prominence, after becoming the fourth biggest cryptocurrency by market cap and the biggest one in daily volume, passing even the Bitcoin in this category.
One curious fact is that we tend to think that Bitcoin is the ultimate solution, for that dystopic situation were governments impose capital restrictions. However, that wasn't what happened. Recently was reported that Chinese importers in Russia are buying up to $30 million a day of Tether from Moscow over-the-counter trading desks. The use of the stable coin has the purpose of sending vast sums back to their home country, which has strict capital controls, a more significant concerning than know if the token is backed or no.
Another matter regarding the Tether tokens it’s the dependency relationship created by the Bitcoin that has its daily inflow majority coming from Tether tokens. Studies have been correlating the Bitcoin upward movements with the Tether issuance. According to TokenAnlyst Bitcoin increased in price in 70% of the days that Tethers tokens were minted, in details, the upward movement happened in 70% of the days were the issuance happened in Ethereum Blockchain and 50% of the days when created on Omni. The discrepancy's likely to be related to the first form of issuance (Ethereum Blockchain) be easier and faster than the Bitcoin Blockchain (Omni). This type of information can help us to understand better or have a broader view when speculating about the Bitcoin movements.
So as Bitcoin and Fiat currencies brawl for the nobility of being the trustable and used currency by the people. The Tether that ironically has all unreliable and suspicious characteristics, that currency and institution could hold still thriving amidst a crash of worlds.
Thank you for reading and leave your comments if you like.
Join the Traders Heaven today, for more exclusive contents!
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Disclaimer: All content of Golden Dragon has only educational and informational purposes, and never should use it as financial advice
Tether (USDT) is a controversial cryptocurrency, created to be a stable coin, that is, it's designed to be worth $1.00 always, maintaining $1.00 in reserves for each Tether issued. However, the audit over these reserves has always been a controversial matter, simmered by the New York State Attorney General (NYSAG), that discovered while building the case against Tether and Bitfinex Exchange (affiliated company) a hole of $850 million in Tether funds allocated in unpaid loans and seized by foregein authorities.
Despite all this controversy, legal tangles with enforcement laws agencies. Tether has been gaining prominence, after becoming the fourth biggest cryptocurrency by market cap and the biggest one in daily volume, passing even the Bitcoin in this category.
One curious fact is that we tend to think that Bitcoin is the ultimate solution, for that dystopic situation were governments impose capital restrictions. However, that wasn't what happened. Recently was reported that Chinese importers in Russia are buying up to $30 million a day of Tether from Moscow over-the-counter trading desks. The use of the stable coin has the purpose of sending vast sums back to their home country, which has strict capital controls, a more significant concerning than know if the token is backed or no.
Another matter regarding the Tether tokens it’s the dependency relationship created by the Bitcoin that has its daily inflow majority coming from Tether tokens. Studies have been correlating the Bitcoin upward movements with the Tether issuance. According to TokenAnlyst Bitcoin increased in price in 70% of the days that Tethers tokens were minted, in details, the upward movement happened in 70% of the days were the issuance happened in Ethereum Blockchain and 50% of the days when created on Omni. The discrepancy's likely to be related to the first form of issuance (Ethereum Blockchain) be easier and faster than the Bitcoin Blockchain (Omni). This type of information can help us to understand better or have a broader view when speculating about the Bitcoin movements.
So as Bitcoin and Fiat currencies brawl for the nobility of being the trustable and used currency by the people. The Tether that ironically has all unreliable and suspicious characteristics, that currency and institution could hold still thriving amidst a crash of worlds.
Thank you for reading and leave your comments if you like.
Join the Traders Heaven today, for more exclusive contents!
Link bellow!
Disclaimer: All content of Golden Dragon has only educational and informational purposes, and never should use it as financial advice