USDT: The Fed is not only a thunder!

Write in front ❖

Recently, the fluctuations of Bitcoin and even the entire currency are very different and unpredictable. This has a certain relationship with the USDT. The USDT hearing will be held today in the United States. If the USDT loses, it will close all kinds of business in New York. If the USDT wins the case, it will not be affected and can continue the original business.

The USDT may win or lose in this hearing. It cannot be denied that USDT is not an ordinary digital currency. It has a relatively important influence in the currency circle.

❖ 美 美 美

➤Encryption market currency

Although many people recognize the currency attributes of Bitcoin, they have to admit two things:

First, the price volatility of Bitcoin is too serious. In March of this year, one bitcoin can also buy 7,000 kilograms of 3.5 yuan/kg of rice. But now, 1 bitcoin can already buy 22,000 pounds of the same rice. For the time being, Bitcoin cannot be a currency.

Second, bitcoin can be traded on the exchange, even speculated, similar to stocks, futures, etc. It is more like a financial asset.

Bitcoin is still the case, and other cryptocurrencies and certificates cannot be considered as currency.

Therefore, Bitcoin's various cryptocurrencies and certificates, as an encryption asset, can be universally accepted worldwide.

These encrypted assets are on the exchange, like other encrypted assets, and can be traded and speculated. We can understand that they are all commodities.

So, who is the currency in this commodity market that encrypts assets?

Like the real world, there is a price-stable thing in the crypto-asset market that can be used as a medium for currency transactions and as a measure of price volatility in various crypto assets. This thing is a stable coin.

Stabilizing coins are the currency of the encryption market.

Central bank of the encryption market

In the real economic environment, the currency we use is issued by the central bank. Although gold is also a currency, gold has already withdrawn from circulation.

In the encryption market, currency is also required to be issued. Therefore, the issuer of the stable currency is the central bank of the encryption market.

Like our world, central banks issue different currencies. Different currencies are also issued in different institutions or ecosystems in the encryption market. USDT, PAX, basics, DAI…

美Cryptographic market for the Federal Reserve

Still the same as ours, although central banks issue different currencies. But the dollar is a world currency that is widely accepted around the world.

The position of the USDT in the encryption market is so similar to the position of the dollar in the world economy.

First, in the encrypted world, USDT is the most widely accepted stable currency, just as the US dollar is widely accepted in the world.

Second, by issuing US dollars and controlling the circulation of the US dollar, the Fed can change the inflation or deflation of the US dollar, thereby causing the US dollar to depreciate or appreciate, thus affecting the world economy.

The USDT, by controlling the circulation, can also affect the encryption market. Recently, several additional issuances of USDT, especially in the first few additional issuances, we have seen bitcoin prices rise. Further, the entire encryption market is affected.

Third, before the Bretton Woods system, the issuance of money required a certain gold reserve. However, after the Bretton Woods system collapsed, the issuance of national currencies no longer required mortgages.

The initial issuance of the USDT is also a full collateralized US dollar. For every USDT issued, there is a $1 mortgage. With the development of the USDT, the USDT is no longer fully collateralized.

The USDT has become a well-deserved currency circle, the world currency of the encrypted world; its changes will have an impact on the entire encryption economy, and it can regulate the encryption economy; it can be issued without full mortgage, just like the US dollar. Becoming a credit currency is neither a consensus currency nor a mortgage currency.

❖Federal Reserve

Let us recall what the Fed has done? In 2008, the US economic crisis broke out. The Fed implemented a quantitative easing policy that shocked the world. To put it bluntly, it is to play with life. We must know that there is supply and demand for money. If the US dollar is printed more, supply will surge and demand will not change, so the dollar has suffered a serious depreciation.

The problem is that in order to withstand the impact of the depreciation of the dollar, some countries have also quantitatively loosened. The renminbi has also been issued in large numbers. The renminbi has also depreciated. The original one can buy one potato. After the devaluation, one dollar is worthless, and one potato cannot be bought. (You don't have to worry about being a potato, just an example, the sweet potato is also OK.) Then, the money in the hands of the people has all shrunk. The chief culprit is the US dollar, or the Federal Reserve.

However, despite this, the US dollar has depreciated greatly against the RMB, and the US dollar has depreciated from 8 yuan to 6 yuan.

If before 2008, the United States owed China a foreign debt of 100 million US dollars, if the original exchange rate, China can recover 800 million yuan, but after the dollar is issued wildly, China can only recover 600 million yuan.

In this way, the Fed has turned his domestic crisis into the world!

Therefore, Nakamoto will develop a bitcoin network.


The Federal Reserve is the central bank of the United States, and to a certain extent it is also the central bank of the world. The USDT is the Federal Reserve of the Encrypted Economy, and to a certain extent it is also the Federal Reserve of the entire encryption economy.

➤ unstable stable currency

This is the fluctuation of USDT on coinmarketcap:

This is the same centralized stabilization coin pax:

This is the decentralized stable currency Dai:

Before April 2017, the USDT was relatively stable, but after April 2017, there was more than one violent thunder. Compared with these three stable coins, except for the dai that has just been on the line, there has been a plunging. At other times, the upper and lower limits of the USDT fluctuation are the largest.

The French currency price of the USDT we saw was determined by the transaction between USDT and French currency. When the USDT is in short supply, there will be a price increase, and when the USDT is oversupply, there will be a price drop.

The digital currency market is changing rapidly, and a 10% rise and fall within 24 is almost the norm. However, the USDT supply cannot be changed at all times like the USDT demand. The supply of USDT is controlled by Tether. In this way, there will always be an imbalance between the supply and demand of USDT. Even when the central control of the USDT supply is adjusted, it will be adjusted within a certain day, which will form a sharp change in the USDT price within the day.

Even though the USDT is gradually circulated to the market, it has a great impact on the news from the time of issuance.

Stabilizing the profit model of the currency

Stabilized currency prices fluctuate very little, unlike other currencies that have large spreads that can be arbitrage. However, the stable currency is still profitable, and it can be said that it is stable and profitable.

At the time of the bull market, the USDT premium, and at this time Tether can issue USDT out of thin air, and then sell these USDTs, you can make money.

In the bear market, USDT discount, Tether went to the market to buy back USDT at a low price, making money easily.

We buy low-selling and high-selling, but we need funds. The bigger the money, the more money we make.

Tether is also low-buy and high-selling, but his funds are USDT, which is issued out of thin air, and he earns directly in US dollars, and issues USDT income dollars. If not fully mortgaged, part of the appropriation can be used. invest again……

The best way to earn money is to stabilize the currency because it is low risk and high profit!

It’s not just thunderstorms.

➤ influence market

Many people discuss the issue of USDT thunder, but USDT is not just a thunderstorm. The USDT acts as the Fed of the currency circle. Its influence is not only its own currency price, but the economic trend and market environment of the entire currency circle.

The increase in USDT will cause a change in the supply and demand relationship of USDT. The increase in USDT supply is likely to cause the USDT price to fall.

As the USDT holders are worried about the USDT's thunder, combined with the BTC is about to halve, the downside is small, and some investors may change the USDT to BTC.

On April 24th, Tether issued a US$70 million USDT with a total of $6.40 in each public chain. Looking back on the day of April 24, bitcoin prices have risen markedly:

Not fully mortgaged

The USDT issuance, it would have been no problem. If Tether pledges enough dollars to issue USDT, it's perfectly fine. However, if USDT does not fully pledge the US dollar, it will issue USDT, so the USDT becomes a credit currency.

In fact, the legal currency is the credit currency. The government relies on its own credit issuance currency to force citizens to use the French currency, allowing us to believe in its purchasing power. The governments of most countries are credible. But Tether official, can it be as credible as the government?

Exchanges, other investors, holding USDT are all required to purchase. After the USDT official received the funds, there was no full mortgage, which meant that the funds were misappropriated. As for what to do, whether to invest in the industry or invest in the stock market or the currency market, we are not aware of it. It is.

Written at the end

The Federal Reserve is the central bank of the United States, and to a certain extent it is also the central bank of the world. The USDT is the Federal Reserve of the Encrypted Economy, and to a certain extent it is also the Federal Reserve of the entire encryption economy.

The problem of the USDT is not just a thunder, like the impact of the Fed, not only the simple depreciation of the dollar, but more importantly, the series of effects brought about by the fall of the currency. The fluctuation of the USDT can affect the fluctuation of Bitcoin and even the currency market.

In addition, the relationship between USDT and the bitfinex exchange is also noteworthy. Two points:

First, USDT's mortgage funds have been misappropriated and have been loaned to bitfinex. Because when the USDT mortgage funds are lent to bitfinex, the risk will become higher. If the user holding the USDT wants to exchange a large amount of dollars, it may cause a USDT run. This possibility is very small, but if the hearing is Once the USDT loses, the USDT may explode and there may be a run.

Second, the USDT's issuance plan may be combined with the control of the bitfinex exchange. After all, the supply of USDT will affect its price, further affecting the price of BTC. Bitfinex has a great influence on the market. Both parties can use the news issued by USDT to control the price fluctuation of BTC, and both parties can profit from it.

Although these two situations do not necessarily exist objectively, they are possible. The first case is likely to occur with a thunderstorm, while the second case does not occur with a USDT thunder.

Because of the centralization of the USDT, it has become the Federal Reserve of the currency circle. Even if it cannot be said that it is in the currency circle, it has a strong influence. The USDT thunder will affect the fluctuation of various currency prices, but the USDT is constantly harvesting the market even if it is not thunderous.

From the national economy to the international economy, there are different levels of centralization, and the encrypted world envisioned by Nakamoto is decentralized. Although the Fed is called the world's central bank, its influence may not be as much as the impact of the USDT in the currency.

The currency circle naturally needs stable coins, but does the currency circle need such a centralized stable currency?