Mysterious Tether
(read to the end)
Friends, we all know this coin which all the traders need. This is a bitcoin token that uses blockchain of the abovementioned coin using the Omni Layer platform. Having in mind Tether we mean 2 coins since Tether is also available as an Ethereum token. The value of the coin is directly tied to the dollar price (in theory) and it is its cryptocurrency equivalent. The price on the exchanges fluctuates within the range of 0.9–1 dollar and it has been very stable so far even against the background of a constantly falling market. The idea of cryptocurrency is quite simple — to unite all financial markets with rapidly developing blockchain technology into the single whole. To do this the creators have backed up all the cryptocurrency that is now in circulation with real fiat money that is said to be in Hong Kong, on the account of Tether. Whether it is so or not, but if you are trading on exchanges, this currency will allow you to fix your profit after the growth of any currency in the price. And here it is not even important whether it is tied to fiat or not. You just keep your assets in this coin in a falling market (relative to a dollar) or you leave it in a convenient currency when the market grows. And this is the front of processes, that is how we see it and also how someone wants us to see it. This is economy and here the rules are set by people with large capital, even the market itself is the product of their activities and they know best their undercurrents.
Well, let’s think about it. Let’s get into their shoes. If we look at the market from outside, what will we notice? In the first place, it’s a hopping rate of bitcoins and a dance of secondary altcoins who do not lag far behind their “boss” and their rate fluctuates in a similar way. Secondly, the lack of cryptocurrency binding to fiat. No state currency and no country supports stability of virtual money and the only thing that determines their rate is a news background, fashion and private investments. Thirdly, the lack of real implementation except money transfer from one user to another.
Based on the above what could I offer to the crypto market? What kind of service would be in such a demand to provide income to me and would be useful for the entire crypto community? It’s not difficult to guess that I would suggest a way to bind bitcoins, the main crypto currency to fiat, at least somehow stabilizing the market.
So, imagine, I’m a founder of a Tether coin which is directly tied to fiat money. 1 Tether is 1 Dollar — I maintain. One Tether is created by my platform after the receipt of one dollar from the investor in my bank account. And vice versa, if I get back Tether released by me, I pay 1 dollar to its owner and I burn the coin myself. A great idea! Provided that the declared mode of exchange will always work for aeverybody, in all countries and without quantitative restrictions, limits and delays. But what is really happening?
Firstly, I have to pay taxes for my financial transactions which means that I should give a part of a dollar received to the state, and Tether that was released by me will not cost as much as I was told. Secondly, the legal side of my activity — not all countries accept my coin, my bank. There are questions about the loyalty of my clients under the law. And thirdly, the “machine” I created requires constant funding. And where can I get money if not from the proceeds that I received for created and sold Tether coins? All this leads to the fact that instead of one promised dollar for one Tether, I can offer a depositor only a part. And I think Tether’s issuers faced this situation in 2017 when the coin got almost completely depreciated. What would I suggest then? I would apply to the owners of bitcoins for help (of course, unless Tether itself was created as such). What could I have offered them? Mutual benefit! Here is the plan.
I release a large part of my coins without bank coverage in dollars. On the stock exchanges I buy assets in bitcoins for my cryptocurrency (having previously agreed on this with the “owners” of bitcoin, of course), setting an order stepwise. This leads to an increase in bitcoins in price in relation to my Tether coin, and as a consequence to a dollar, because my asset is directly tied to fiat money. I return bitcoins obtained in this way back to the owners, and in return I take my Tether from them, plus the proceeds from the growth of bitcoins. Coins (received back Tether) without cash cover, are burnt. I use the income to finance my cryptocurrency.
Would this plan satisfy “the whales” of bitcoin? Of course, yes! This is a great way to blow the capitalization of the entire market! It happened the way I wrote or not, only “the Hosts” of bitcoin and Tether know. Did they use such a scheme? It’s not a fact. But the market is working in the way as if there is no fiat provision under it. And the capitalisation of bitcoin is a price of this coin on the exchange multiplied by its number and nothing more!!! I want to exclaim, “And the king is naked.” Where are these billions of real dollars that make up the real capitalization of the whole market? If they do exist, then they are in hand and no one will give them in return for virtual numbers, because after bitcoin there is nothing more than a depositor, an inscription on the exchange with its price and beloved Tether! Can cryptocurrency dispense with binding to fiat? I don’t think so. Will Tether help in this? I do not know, we leave it on the “conscience” of the coin. Let’s leave it as a mystery for us! The mystery of Tether.
The article was prepared by Daniel Stoykov and the ICO CustomCoinPlatform team
