This view is not new and has been discussed a lot in the crypto community. However, to evaluate whether the above statement is correct or not, it is necessary to consider both theory and practical data from many aspects:
1. Tether and the role of USDT
• Tether (USDT) is the most widely used stablecoin, with a large capitalization and high liquidity. USDT helps investors quickly convert between cryptocurrencies and keep its value stable in volatile markets.
• Some critics argue that Tether lacks transparency regarding whether they have enough collateral to back all USDT issued. This has caused much skepticism and controversy in the past.
2. Argument about the relationship between USDT printing and Bitcoin price
• Reality: When USDT is issued, it is often used to buy Bitcoin and other cryptocurrencies, which can create upward price pressure.
• Controversy: Some opinions suggest that the new USDT being 'printed' without sufficient collateral leads to an 'inflated' Bitcoin price. Many reports, such as those from Bitfinex'ed or research from the University of Texas (2018), also suggest that there is price manipulation through Tether.
3. Other reasons for Bitcoin's price increase
• Limited supply: Bitcoin has a cap of 21 million coins, creating a natural scarcity mechanism.
• Market sentiment: Factors such as halving (reduction of block rewards), mainstream acceptance from large institutions, or the weakening of fiat currency also have a strong impact on BTC's price.
• Speculation and expectations: BTC's price is often significantly influenced by speculative sentiment, positive news, and natural growth cycles.
4. Is the argument above true?
• Not entirely true: Although Tether may have a certain impact on Bitcoin's price, the peak of BTC's price is often a combination of many factors, not just USDT alone.
• More evidence needed: To assert that Tether manipulates BTC's price, clearer data is required, such as the correlation between large USDT printing events and sudden price increases of BTC.
Conclusion
The argument that Bitcoin's price only increases due to Tether 'printing money out of thin air' is one-sided and lacks sufficient basis. However, the relationship between Tether and Bitcoin is certainly an important factor that needs to be monitored more closely to ensure market transparency. Be cautious of major accusations without clear evidence.
