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USDT will not collapse

USDT is a stablecoin issued by Tether and dominated by Bitfinex. There were USDT holders in the U.S. who questioned its issuance, causing the USDT price to drop by 20% to 30% at one point. In 2019, USDT experienced a significant fluctuation, with its price dropping to 4 dollars.

The issuance mechanism of USDT is that for every USDT issued, one dollar must be deposited in its designated account. However, I cannot assert that Tether has 100% reserves, but at least 90% is sufficient.

The reliability of a currency depends on its liquidity rather than the collateral behind it. If you take dollars to the Federal Reserve, nothing can be exchanged, does this affect the circulation of the dollar? As long as the market continues to accept it, it is valid; this is the power of liquidity. #BabyMarvin合约 F9

From this perspective, USDT does not need excessive collateral; a 10% reserve is sufficient to meet the market's arbitrage demands.

So, is USDT a kind of "counterfeit money"? Indeed, but isn't the dollar itself also a kind of "counterfeit money"? The Federal Reserve can print money at will; how is this different from counterfeit money dealers?

In short, as long as the dollar does not collapse, USDT will not collapse.

#Bull or Bear by the end of the year? #How will the war affect the crypto market? #Tether denies investigation and sanctions #Market observation before the U.S. election #Hackers return stolen crypto assets to the U.S. government #BabyMarvin合约地址F9C7