Great way to Increase Bitcoin Holdings.



Tether’s USDT has always been a very interesting currency for many different reasons.It is supposed to be pegged to the US Dollar at a 1:1 ratio, which always creates some speculation as to how a company can keep the price at that level. In the case of the USDT price, the value will hardly ever shift, even though it is slightly above $1 right now. What is of great interest is its current trading volume and the USDT price increase compared to both Bitcoin and OMNI.

USDT PRICE OUTCLASSES BITCOIN AND OMNI


The one boring thing about stablecoins such as Tether’s USDT is how they will hardly ever fluctuate in value. In the case of the USDT price, the value will always remain at $1 or within a 1% difference of that value. Right now, the USDT price is labeled as $1.01, even though people will only get 1 US Dollar for every USDT they trade. It’s an interesting form of currency, even though there are still a lot of questions regarding Tether’s financial situation right now.

More specifically, a lot of people are still waiting for an official independent audit of the company’s financial records. Their prior “partnership” with Friedman LLP was suddenly dissolved without any auditing taking place. To this date, it remains a bit unclear why this has happened and whether or not Tether will look for another firm to provide its auditing services. Until they do so, the company will continue to face a lot of backlash on social media due to their “shady” operations. No one is guilty until proven otherwise, though.

One would expect these “growing concerns” regarding Tether to negatively impact the demand for USDT. After all, the company has been – seemingly in random fashion – bringing more USDT into circulation whenever the Bitcoin price started tanking. If that were actually the case, however, one would expect this company alone to be able to sustain indefinite Bitcoin price growth. So far, that has not happened, as the Bitcoin price is down over 32% in the past seven days.

No one can blame the USDT trading volume for this particular development, though. There is such a high demand to both buy and sell USDT right now, its trading volume has surpassed $3bn over the past 24 hours. At this rate, Tether’s stablecoin will easily overtake Ethereum in terms of volume. While not completely unheard of, it does show all cryptocurrency markets are heading in a very peculiar direction as of right now. When Tether’s USDT is the third-largest currency by volume, it remains to be seen if this is a positive trend in general.

When looking at the biggest trading markets for USDT, it is no surprise Bitcoin and Ethereum take the cake at any given moment. OKEx’s BTC and ETH markets are both in the top three. Binance’s BTC and ETH markets are ranked second and fourth. Huobi’s  ETH and BTC markets are in the top six as well. The first currency to break this trend is Litecoin, which is also heavily traded against USDT on OKEx. In fact, OKEx is ranked a total of five times in the top 13 of USDT pairs. An interesting trend well worth keeping an eye on in the future.

It is also worth noting USDT maintains its price stability thanks to some solid gains against both Bitcoin and OMNI. With a 15.43% gain in BTC value and a 19.87% increase in OMNI value, it is evident USDT is becoming the go-to solution if you want to increase your Bitcoin holdings in quick succession. This is not without risk, though, as people need to trust Tether enough to allow them to trade back the USDT for Bitcoin or Ethereum in the future.

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