There have been warnings and reports available for consumers that those who are investing in the crypto currencies “should be ready to lose all their money,” the U.K’s Financial Conduct Authority has already warned cryptocurrency investors few months back.
However, we see that Bitcoin now has crossed the mark of 70k USD for each coin and made its life time high after slumping to nearly 28k few months back. We have seen many crypto currencies getting toppled, almost wiped out (Luna), making scams (SQUID) and giving 3 to 4 times return once in while (SHIBA).
People are going haywire with sudden moves of cryptocurrency in either direction and is surely not a game for faint hearted people. In this broad day light of extreme high volatility, people chose more stable coin to preserve their crypto assets earning with coins like USDT, BUSD etc.
Tether, ranking as the third most valued coin (with Ethereum holding the second position), stands out from other cryptocurrencies. While the market predominantly thrives on speculation, Tether distinguishes itself as a stablecoin, maintaining a fixed value pegged to the dollar at a 1-to-1 ratio.
Tether plays a crucial role in enhancing liquidity and serves as a widely accepted token facilitating transactions across different cryptocurrencies. USDT in fact functions as a digital equivalent of the dollar in the realm of crypto markets and it enjoys a widespread usage. Sometimes its volume is surpassing even that of Bitcoin.
However, a lingering concern surrounding Tether, currently under scrutiny by the New York attorney general’s office, revolves around its primary appeal: whether it serves to artificially boost the value of Bitcoin. Essentially, the question arises whether Tether functions as a means for cryptocurrency insiders to profit from the markets most sought-after, and easily manipulated, asset.
Here is the information that you must consider, before reaching to the conclusion the USDT is a stable coin or not, as it appears to be? Originally known as Realcoin, Tether was established in 2014 before being rebranded to its current name. Unlike decentralized cryptocurrencies like Bitcoin, Tether operates under the control of a single entity, Tether Limited. This centralized control raises concerns regarding transparency compared to decentralized counterparts.
Unlike Bitcoin, which is constrained by mathematical algorithms to ensure scarcity, Tethers supply is not similarly limited. Tether Limited holds the authority to create new coins at its discretion, potentially resulting in an unlimited supply of Tether. This lack of scarcity raises questions about the stability and integrity of the cryptocurrency.
Tether Limited ability to generate new coins opens avenues for potential market manipulation, given its centralized control over the currency supply. Moreover, Tethers association with Bitfinex, a cryptocurrency exchange overseen by Tethers Limited executives, facilitates unregulated trading, raising concerns about possible involvement in money laundering activities by both entities.
Critics of Tether dispute the company’s claims of minting new coins in response to demand. Instead, they argue that Tether is part of an elaborate scheme involving the use of its native currency to purchase Bitcoin, thereby artificially inflating Bitcoin prices and manipulating the cryptocurrency market.
Allegations suggest that control over an exchange, combined with trading using non-existent funds, can significantly influence cryptocurrency prices.
According to court filings by New York Attorney General Letitia James lend credence to these accusations, with ongoing investigations poised to unveil further details. Bitfinex and Tether are under pressure to submit extensive documentation to James’ office by a January 15 deadline.
Additionally, Tether faces a substantial class-action lawsuit, attributing its actions to exacerbating what is dubbed as “the largest bubble in human history”. Notably, patterns observed in Tethers currency issuance in 2017 correlated with significant Bitcoin price increases, followed by a sharp decline.
Since then, Tethers ascension to prominence and its profound impact on the cryptocurrency landscape have been nothing short of staggering. While only a few billion Tethers circulated initially, the current count approaches a staggering 100 billion.
Its trajectory mirrors that of the USD, which the US government has incessantly printed to alleviate debt burdens and fund ambitious projects, thereby maintaining its status as a global powerhouse.
However, beneath the surface lies a darker reality. The mindless printing of USD has set the stage for potential catastrophe, as the unchecked expansion of the US money supply threatens to destabilize not only the American economy but also the global financial system.
Experts warn that the bursting of the USD bubble could precipitate an economic crisis unparalleled since the Great Depression of 1929, eclipsing even the magnitude of the 2008 market crash.
In a parallel vein, the unchecked proliferation of USDT poses its own set of risks. Similar to the relentless printing of USD, Tethers ability to mint new tokens at will raises concerns about market manipulation and systemic instability.
The potential revelation of such secrets could trigger a bloodbath in the cryptocurrency market, resulting in widespread panic and the collapse of digital assets on a scale never witnessed before.
While the exact timing remains uncertain, one thing is clear: when the inevitable reckoning arrives, it will unleash a maelstrom of chaos and upheaval, plunging the crypto landscape into the depths of hell.
