Peter Brandt, a well-known career trader with over half a billion followers on Twitter, often tweets valuable market information. Peter Brandt recently took a stand on Tether and called it an unnecessary wit fart in a tweet.
Peter Brandt, the legendary trader, has words of wisdom
Peter believes that the idea of converting an old fiat currency, such as the dollar, into a digital unit such as Tether to protect his wealth against inflation is meaningless as it is not of any use.
Circular reasoning – TETHER
The idea that one fiat currency units (USD, EUR, etc.), can be converted to another fiat currency units (tether) is absurd. The idea that we convert one fiat currency currency unit (USD, EUR, etc.) to another fiat currencies unit (tether), in order to preserve the wealth reserve for the first fiat money unit is a huge mental fart.
– Peter Brandt (@PeterLBrandt) August 16, 2021
Many agree with Peter’s tweet, but a few have valid objections. One user claims that stable crypto assets exist to enable people to take their local cryptocurrency in a somewhat untrustworthy way. Instead of worrying about the risk on every digital platform, trust is at issuer level.
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Another Twitter user claims that traditional fiat is not converted into stablecoin in order to protect their wealth. That Tether and the other stables are merely a nonvolatile bridge asset that allows transactions to occur that are more volatile, without leaving cryptography.
Tether, the main stablecoin in crypto, continues to be the dominant currency. Tether’s market value jumped to $64 Billion yesterday, marking yet another milestone and a sign of market confidence in Tether.
Tether Holdings Limited was the issuer of the largest USDT stabilitycoin on August 9. new attestation reportThis provides useful information about the composition of its reserves to make it more transparent.
Since March, when Tether’s first attestation reports vaguely disclosed assets and liabilities, investors have waited patiently for a new report. Tether included not only the composition of its reserves, but also a breakdown and maturity of its commercial papers holdings and certificates of deposit.
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As of June 30, 2020, the company had $ 30.8 Billion in CDs and PCs. This represents 49% of its reserves. 93% of these are rated at least A-2 and above, and 1.5% are below that level. The company also has approximately $ 6.28 trillion in cash and bank deposits, $ 1. billion in reverse pension notes, and $ 15.28 trillion in US Treasury bills.
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