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October 16, 2018, 11:16:07 AM |
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At around 14:00 pm yesterday, during the lunch break, Bitcoin suddenly ushered in a 13% increase, and the price of BTC/USDT reached a maximum of $7,600. There’s no doubt that it is the most exciting thing for the investors who has experienced a 10-month bear market from the beginning of the year to the present. However, after excitement, investors suddenly found that something seemed wrong, the price change was just the transaction cryptocurrency and USDT, but there was no significant change in the transaction of the legal currency. After two or three hours, the market began to calm down, and the price gradually fell back to around $6,800. People gradually saw the clues and returned to calm from the initial excitement.
We can find that this so-called skyrocketing is just a stand-alone game of the USDT transaction against the crypto assets, and this turmoil creates a short-term panic in the market. It is a transfer of encrypted assets from USDT to the encrypted assets themselves. Because there is no new capital to enter, there is no growth. But this time, the “fake bull market” can also reflect the value of Bitcoin for investors from the side.
In fact, the complaint against USDT is not just beginning. Some people have questioned the stability of USDT and the opacity of funds. The plunge on October 15 has also aggravated investors' distrust of USDT.
The volatility of encrypted assets is actually similar to some economic cycles in history, and the collateral of “stable coin” is not first created by USDT. After the Second World War, a system similar to the gold standard system was established under the leadership of the United States. Under this system, national currencies are pegged to the US dollar, and the US dollar is pegged to gold, which is equivalent to $35 in the price of one ounce of gold. Then the excess dollar caused the end of the Bretton Woods system. After that, anchoring oil had an similar experience. The dollar needed to embody its value by binding a value that had been already ingrained in people's minds. As the US national strength became stronger, the dollar no longer needed external force. The dollar has realized the transformation of collateral to credit currency, and truly fulfilled the function of value scale.
Absolutely, the USDT can't compare the US dollar, because there is no such a huge system like United States to create continuous value behind it. But it has became a value tag that is deeply rooted in people's minds just like American Dollar. History shines into reality. The birth of stable currency is an inevitable trend in the history of cryptocurrency. Its emergence was only a short historical stage in the process of currency digitization, and will not become the end. The replacement of stable currency is also an inevitable trend, but the change of history needs time. As far as the current situation is concerned, a large number of stable coins have begun to rise. The USDT that temporarily maintains its advantage is constantly being hit by competing products, but USDT will not fall for the time being. The market share is too big, if the sudden collapse will cause a very large earthquake in the market.
Imagine that if there is a international currency such as the US dollar issued by the government as legal cryptocurrency, so the stable currency arched by legal currency will naturally no longer be needed; and if there are other financial instruments that are better than the stable currency, the status of the stable currency will also be affected. Therefore, the replacement of USDT is an inevitable and slow process, perhaps a legal cryptocurrency, or perhaps another financial instrument. In any case, the stable currency will eventually complete the inevitable process of historical development.
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