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Are Stablecoins MANIPULATING Bitcoin?? My Findings! 🧐



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– TIMESTAMPS –
0:00 Intro
2:19 What Are Stablecoins?
4:56 Latest Stablecoin Printing
7:08 Stablecoin Volatility
8:40 Why Print Stablecoins?
11:04 Stablecoin Manipulation!?
14:04 Stablecoin vs. Governments
17:37 Stablecoin Issues
20:30 Ultimate Ideas

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⛓️ 🔗 Helpful Hyperlinks 🔗 ⛓️
► Stablecoin Market Cap:
► Blockchain Analysis x College of Hamburg Stablecoin Examine:
► VOXEU Stablecoin Examine:
► EU Stablecoin Laws:
► Circle Freezes USDC Account:
► Stablecoin Printer Tracker:

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❓What Are Stablecoins ❓

Stablecoins are cryptocurrencies whose values are pegged to a extra secure asset such because the US greenback. There are additionally stablecoins pegged to denominations of treasured metals like gold.

Stablecoins have been controversial. Many within the crypto neighborhood consider that stablecoins have been used to govern Bitcoin’s value. Each Tether and USDC work intently with regulation enforcement and have a historical past of freezing pockets addresses which had been suspected of being concerned in felony actions.

You’d even be arduous pressed to discover a single stablecoin which has maintained an ideal peg throughout instances of excessive volatility. Regardless of these issues, stablecoin share of the general market cap of the crypto area has been rising exponentially over the previous yr.

🖨Latest Stablecoin Printing🖨

The market cap of the 8 largest stablecoins has grown from 5 billion to over 22 billion during the last 6 months. Most of this progress has come from Tether, which went from a market cap of 4.5 billion to just about 17 billion throughout this era.

There look like two distinct surges in stablecoin printing during the last 6 months. The primary wave of stablecoin printing appears to have begun after that flash crash in March and continued till early July.

📉Stablecoin Volatility📈

When demand of stablecoins is excessive, intelligent merchants can typically promote a stablecoin for barely greater than its peg. It is because individuals need stablecoins so badly that they’re prepared to pay a small premium to guard in opposition to additional losses within the cryptocurrency they’re desperately attempting to promote.

The alternative occurs when demand for stablecoins falls. If everyone seems to be attempting to promote their stablecoins on the similar time to purchase into Bitcoin or one other cryptocurrency, the sudden flood of provide can drive costs barely under the 1 greenback peg they’re supposed to carry.

😨Stablecoin Manipulation!?😨

There doesn’t look like any tangible proof that stablecoins can be utilized to inflate the cryptocurrency market. That is all comes down to a different issue which separates stablecoins from the fiat they’re pegged to: redeemability.

The 2 largest stablecoin issuers, Tether and USDC, truly mean you can redeem your tokens for actual US {dollars}. If the value of USDC was to drop considerably attributable to a sudden spike in provide, because of this somebody may purchase up a bunch of USDC at a reduction, go over to Circle’s web site, and demand their 1-dollar peg.

As such, the quantity stablecoins you see in circulation are, in idea, obligatory. Stablecoin provide is essentially an indicator of demand for cryptocurrencies as an entire and never an indicator of market manipulation.

👮‍♂‍Stablecoin Issues👮‍♂‍

Stablecoins make US {dollars} readily accessible to anybody with an web connection. This threatens the soundness of foreign exchange as a result of the second they begin to lose worth, their residents can simply speed up that devaluation by promoting their native currencies for US {dollars}. In a worst-case state of affairs, this might fully tank one other nationwide foreign money, making the affected nation’s financial system closely depending on US financial coverage.

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📜 Disclaimer 📜

The data contained herein is for informational functions solely. Nothing herein shall be construed to be monetary authorized or tax recommendation. The content material of this video is solely the opinions of the speaker who isn’t a licensed monetary advisor or registered funding advisor. Buying and selling cryptocurrencies poses appreciable danger of loss. The speaker doesn’t assure any explicit final result.

#Stablecoin #bitcoin #tether #crypto #manipulation #buying and selling

Source: Coin Bureau

32 Responses

  1. USDT (set in the Cayman Islands) has minted more money ($4.5B) than the entire Cayman Islands banking system has seen deposited by foreign accounts in the same period ($600M). This leads me to think that they have been printing their own money to convert into crypto. The start of the bull run correlates exactly with USDT cranking up production. All people have seen of their assets is an attestation (basically a statement from them swearing they actually have the reserves). If it looks like bullshit, and smells like bullshit…

  2. The entire 10450 different types of crypto coins and tokens were created out of thin air. They only exist as an abstract idea inside peoples heads. So I don't think it actually matters if Tether isn't backed by anything.

  3. I'm going through the old Coin Bureau catalog and am finding nothing but gems. Premium quality content right here folks! Guy, your clear and concise analysis and presentation brings an otherwise opaque topic into sharper focus. Thank you.

  4. Horrible conclusions.
    1) Saying that "stable-coins not having the dollars to back them up is okay because banks only have 10% in reserves too", is ridiculous. In case of a bank run, banks can receive 100% of the money form the FED. Not the case with stable-coins. If the money isn't there, then it is gone for good.
    2) Stable-coins CAN be used to manipulate the BTC price if the exchange and the stable coin issuer collaborates and in case of Tether and Bitfinex, owners are the same ( very shady people by the way). Arbitrage is irrelevant here. How are you going to arbitrage something if you are buying it from the issuer just to sell it back to the issuer? Actually there is no buying and selling here. You are not selling it back to the issuer, you are redeeming it. So, normal supply-demand dynamics don't apply here.

  5. Would have been nice to explain to bull on stablecoin in the context of negative interests on bank accounts i.e. FIAT USD bank account to mirror USDC issue (skipping USDT since not relevant, see Coffeezilla video on Tether…). There is something fishy, isn’t it?

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