Is Tether’s Crypto Dominance A Forebode For Facebook’s Libra?

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Last Updated on 17 October 2020 by CryptoTips.eu

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / jeroen@cryptotips.eu
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Many reports were to be read this week claiming that Tether would soon become the dominant force in the cryptosphere. Classic Wall Street investors seem to prefer trading in stablecoins as they do exactly what their name says, aka be stable.

Earlier this week On-chain analytics firm Glassnode showed a revealing graph which could see a straight line ascending in an almost 45 degree angle. Turns out it was the growth of $USDT transaction volume.

We may talk of boring Bitcoin on these pages from time to time, but Bitcoin’s reluctance to trade outside of the $10k to $12k range over the past few months is nothing compared to the steady hand that Tether seems to bring to the board.

Advertentie.

Bloomberg bullish on Tether

Bloomberg senior commodity strategist Mike McGlone recently published his company’s Crypto Outlook for Q4 of this year, and in that document Tether is allowed to play a major role.

Mike said:

Tether represents what many of the so-called cryptocurrencies aren’t: a stable form of payment.

The people over at Tether themselves don’t really think of their coin as a competitor to Bitcoin’s dominance though, but rather as a competitor. Tether’s CFO Paolo Ardoino claimed that:

Aside from bitcoin, of course, which is the king of all cryptocurrencies, tether is in some respects the digital asset of our times.

Vitalik Buterin better watch out though, because Mr Ardoino also stated that:

We don’t see ourselves as competing with ethereum. Nevertheless, eclipsing ethereum’s market capitalization … will be a powerful statement. Tether once again proves itself to be one of the most trusted assets in the crypto space.

Sign of things to come?

If this is the dominance of Tether at this moment already, how will things develop when Facebook finally brings out Libra, it’s long awaited stablecoin for which even the G7 is fearful?

More close to home, even the EU has expressed concerns about the future crypto of Facebook as it would mean that Europe would give up control to a US company when it comes to money matters.

Interesting times.