Tether recently released its latest financial statement. An interesting fact was reported from Cryptoslate:
Tether attestation shows $1.5B worth of Bitcoin in reservesTether, is hodling Bitcoin and Gold against their USDt liabilities. Tether is holding bitcoin for 1.5 Billion, or 2% reserves, and gold for roughly double the amount.
It is compelling to notice they are holding a non-yield bearing asset in the high-rate environment.
They could invest all their reserves in Treasury bills which could yield a little less than one billion alone. (considering a 4.8 rate for a 1-year horizon.
They instead bought Gold and Bitcoin, whose nominal yield is close to zero percent.
hahahahaha
thanks for pointing out that "yield" angle.
Not everyone (or business) is tempted by having to get yield on their holdings in order to attempt to preserve their wealth, and surely many of us likely realize that some of the yield products have their various kinds of risk, and maybe there might be some justification to keep some value in the yield products - but also realizing that there is risk - even USGovt products... and even with the UPs and downs of something like bitcoin, many of us have also seen that there are some days (short-periods of time) that you just need to "already be in it" when it might go on some kind of an UPpity rip and fail/refuse to come back down to the price point in which it had started such rip... and of course, future UPpity rips are not guaranteed, even if they have historically happened on quite a few occasions in bitcoinlandia....
... so would it matter if you are in some kind of a "yield" product when the bitcoin rip ends up happening (if it happens?) when the yield might be paying a relatively high amount in dollars, but the dollar is devaluating so fast that the rip ends up showing the yield as the likely little dwarf that it is, relatively speaking.
No one is going to say how much each of us (whether an individual or an institution or a government for that matter) should attempt to keep allocated in various kind of asset classes or how much we should be considering "yield" when comparing products, so each of us has to attempt to figure out those allocations for ourselves, and then let the chips lie where they will when several years play out in which there may well have appeared to have been some great short term measurements on some products, but then how did the various products perform, relatively speaking, on a longer timeline?..
.. many of us might have recalled many of the bullshit correlation-related talking points that were being thrown around in around March 2020 about bitcoin failing/refusing to perform as an "inflation hedge" or a store of value.. and yeah there can be some opportunistically ways to make those kinds of measures (and the talking points stay in people's heads too), and yet do the measures and talking points measure up to longer term reality in which so many folks who had been accumulating BTC at sub $10k price points at any point between mid-2018 and late 2020.. have seemed to have had built up a pretty decent solid base for their cost of bitcoin as compared to how other various asset classes have performed over the same period of time... and yeah, the jury is still out in terms of where bitcoin might be going from here as compared to other places that any of us (whether individual, institution or government) might choose to keep our value and how much do we feel that we "need to be" in yield bearing products as compared to sound money products... gold? who knows about gold? but still.. having that non-yield bearing bitcoin on the side does not seem to be a bad thing for those folks who are able to figure out how to accumulate it and feel comfortable in their having had secured it.. even if it might be in a place that cost money to store or does not bear yield.