Bitcoin is a coin that has enjoyed an unrivaled position of being a king of cryptocurrencies ever since it was launched over 10 years ago. Bitcoin has seen sim slumps over the last 10 years resulting in to jump to around $11,300 per Bitcoin today and this is giving Bitcoin a total value of over $200 billion.
Tether-an upcoming rival to Bitcoin
When we have a look at the market for stable coins we notice that the cryptocurrency has held down to traditional currencies for assets. And this trend has doubled in a ratio in the last 3 months according to a new report. The prediction shows that the largest stable coin, tether which is a point of controversy is liable to become the second most valuable cryptocurrency after Bitcoin next year. The biggest of crypto assets are now migrating towards tether.
It is being revealed by the US Department of Justice that the growing Bitcoin and crypto national security threat indicates the oncoming storm. The former Goldman Sachs Hedge Fund chief has stayed the that Bitcoin will reach to 1 million dollars and it has two reasons for this:
1 Bitcoin has seen a slump of nearly $1 billion this week.
2 Bitcoin has seen a bombshell from Fed Chairman Jerome Powell.
Bitcoin remains a considerable coin with a good margin
According to Bloomberg senior commodities strategist, Mike McGlon who stated in the company's Crypto Outlook tether is a real representative of what many of the so-called cryptocurrencies are not able to represent. It is a stable form of payment.
A report for the fourth quarter of 2020
We know that in recent year's Bitcoin use case has evolved from a major payment system to a reliable store of value. It was also regarded as a hedge against inflation. McGlone also states that the currently unmatched central Bank is going to spend a lit fir the debt to GDP levels in the whole world. It is doing so to act as a strong tailwind for the Bitcoin price which is going to put it on a track leading to $100,000 dollars for Bitcoin by 2025.
He further added that if the present trend continues, the growing demand for a digital version of gold(Bitcoin) and crypto-assets like dollar will eventually lead to the surpass of Ethereum next year. He also says that we are noticing an increased adoption of the tether. However, it has a stagnant market cap. For more information in regards to this visit bitcoinupapp.com
Etherum holds a considerable market cap
Ethereum is a point that presently has a market capitalization of over $40 billion as compared to the tether which is relatively scanty near $16 billion. Tether has a total value of 300 % over the last 12 months. However, its volume has doubled the value of the tether.
Bitcoins market value is rising at a slower speed than ethereum and it is adding only 40% since this time last year. On the other hand tether cumulative transaction volume has touched 20% over the past 30 days and it is climbing above $600 billion according to blockchain analytics firm Glassnode. Tether is having a $35 billion transaction volume on daily basis according to data found on the sites CoinGeckooin and CoinMarketCap.Bitcoin has a daily transaction volume between $20 billion and $25 billion.
The data found besides Skew shows that the futures contracts based on tether are now equal with those based on Bitcoin. Around 70% of the exchange-traded volume is now denominated in the tether. Tether started with a small trade volume in 2017. It was a time when Bitcoin accounted for 50% of trades according to CyptoCompare site.
Tether is a complement not a competitor of Bitcoin
Paolo Ardino, the chief technology officer at Tether Limited says that it is true that Bitcoin has been the king of all cryptocurrencies but it is also right to say that tether is in some ways the digital asset of present times. He also says that we are seeing Tether be the right complement to Bitcoin rather than a competitor.
We are not indulging in a competition of Bitcoin with tether. But it is true that tether is proving itself to be the most trusted asset in the proposed space of crypto.
Tether is also facing some problems during the summer season. A New York court's attorney general is going to pursue a claim of Bitenex. It is said that it has been hiding a loss of over $800 million in client and corporate funds. Tether Limited has failed to satisfy the critics that have a strong opinion that the tokens are not fully backed one to obe by US dollars.
Final thought
So finally when we look at the rise of stablecoins in recent years shows that the coming Central Bank adoption of digital currency will rise some competitors. It also suggests that Central Bank take up would provide the market with much-needed support.
