Peter Brandt Says Tether Is One Big Mind Fart, Here’s Why
August 17 2021 - 10:01AM
NEWSBTC
With over half a million followers on Twitter, Peter Brandt is a
well known career trader who often tweets valuable insights about
the markets. In a recent tweet, Peter took a stance on Tether
calling it a useless mind fart. Choice Words From Iconic Trader
Peter Brandt According to Peter, the concept of converting a
traditional fiat currency such as the dollar or the euro into a
digital fiat unit such as Tether, just in order to protect its
store of wealth against inflation, is a meaningless process as it
serves no purpose. Circular reasoning – TETHER The idea that we
convert one fiat currency unit (USD, EUR, et al) into another fiat
currency unit (tether) so as to protect the store of wealth of the
first fiat currency unit is nothing but a gigantic mind fart. —
Peter Brandt (@PeterLBrandt) August 16, 2021 Though there are many
who agree with Peter’s tweet, a few have valid arguments against
it. One user argues that stable crypto assets exist to allow people
to take their local currency digital in a somewhat trustless way.
The trust is at the issuer level instead of having to worry about
that risk at every digital platform one might use. Related Reading
| Peter Brandt: 99% of Altcoins Will Be Forgotten in Five Years
Another Twitter user argues that no one really converts traditional
fiat into stablecoin to protect their store of wealth, that Tether
and other stables are just a nonvolatile bridge asset between
trades of more volatile ones, without having to leave the crypto
realm. Meanwhile, Tether continues to dominate the crypto market as
its leading stablecoin. Just yesterday the market cap of Tether has
grown to $64B marking a new milestone and another indication of the
market’s continued trust and confidence in Tether. Tether Announces
Further Details Into Its Reserves On August 9, Tether Holdings
Limited, the issuer of the largest stablecoin USDT has released a
new attestation report that covers useful insight on the
composition of its reserves in a bid of be more transparent. Ever
since March when the company released its first attestation report
vaguely revealing assets and liabilities, investors have been
patiently waiting for a second report. In the latest attestation
report, Tether has not only included the composition of its
reserves, but also given a breakdown of the ratings and maturity of
its commercial paper holdings along with the certificates of
deposit. Related Reading | Brandt: You’re Doing it Wrong if
You Accumulate Dollars Over Bitcoin As on June 30, 2021, the
company holds $30.8B in CP and CDs which is about 49% of its
reserves. Around 93% of this is rated A-2 and above and 1.5% iis
rated below A-3. Among other reserves, the company holds around
$6.28B in cash and bank deposits, $1B in reverse repo notes and
$15.28B in U.S Treasury bills. Featured image from iStockPhoto,
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