Looking forward to the king of USDT performance and the digital money dream

With the decline in the projections of the large temples in 2022, the emphasis is more on the heat exchanges of the public chain and the application layer.financial stability.

US profits are now the cornerstone of the success of the entire economy, and its glory comes from the market, with USDT still reigning over more than half of the market.

The difference is that sometimes we hear the USDT asking,But for most people, USDT is inseparable.

Issuer Tether has long been questioned as an inadequate and opaque product, and is viewed by some as a risk factor for the blockchain industry. Additionally, Tether frequently responds to related rumors last year and presents details of the first assets. Tether said most of the ratings were for Apple and premium products (Moody's A2 and above), and Moore Cayman also released its quarterly asset announcement in December. . At the time, "We update the balance sheet daily on the Tether site" (https://wallet.tether.to/transparency), specifying that the savings are the same as before. provide stable results.

In addition to Crypto fields, The impact of the continent gentle point to the real world.

On February 1 of last year, the USDT became the legitimate currency of Myanmar's shadow government, devaluing the dollar to some extent against international currencies and increasing its influence in global politics and online activities.

Connor Spelliscy, founder of the Blockchain Association, a US blockchain policy lobbying group, believes that the availability of stablecoins does not affect the US dollar, but could strengthen the USD and create more opportunities for its use. He also noted that despite the controversy over the USDT, the largest stable currency in the market, the US Federal Reserve does not have digital currency programs and countries are competing to generate digital profits from bank accounts. . This behavior is not very good and may push the blockchain market overseas or other digital banking institutions, making it difficult to maintain a stable US dollar currency.

The real strength of a stable coin like USDT in the global market is close to the overall improvement in the cryptocurrency market and the global political and trading environment. , and affected the practices of US government institutions.

In general, the author expects the global coin stability market to increase in 2022, relative to other stabilities such as USDC, PAX and TUSD,The USDT has the potential to become stronger and more influential globally, and breaking the law is now more difficult.

Stabilitycoins market logic

There are two main reasons for the lifetime value of fixed income securities, one is to respond to the income of the cryptocurrency market, the other is to create a currency market that has grown in value and has a stable consensus, etc. will be linked to the USD Stabilitycoin. The US dollar, especially the USDT, has emerged as the mainstay of the cryptocurrency market and the largest currency in the Middle East, along with other alternatives. The experience of American money always has been. Due to the global expansion in recent years, the popularity of the cryptocurrency market and the stability of the USDT around the world, more and more users have chosen the stable US dollar currency as the rate. US dollar exchange rate. The advantages of USDT are also. Obviously, in cross-border trade, currency exchange rates and exchange rates have outperformed the traditional financial markets for the US dollar.

go,There are stablecoins like USDT in both the on-chain and off-chain world.

The market characteristics and competition of fixed funds are different from other cryptocurrencies, which have the characteristics of both financial and stock markets, and trading in fixed funds deliberately eliminates the risk rates due to the characteristics of the stock market.All you need is a characteristic of the currency market, the main purpose of which is to provide a stable product.

In “Understanding the Role of Debt in Finance,” said Nobel Laureate Bengt Holmstrom, financial institutions and businesses have a completely different role to play and economics, business logic and market risk. Market participants are data sensitive, frequently demand openness and transparency of company information, and will use the information to measure product and risk value, and affect the current contract value of discovery value.

The short term financial market is different from the stock market. Short-term financial transactions lead to high performance without risk.As always, the short-term financial market lacks a profitable discovery that can control a wide range of measurement data. Short-term financial market participants have been excited about the global economy and market, and there is already a slight doubt that the advertising budget is too high. ) Okay, I don't understand the information.

Holmstrom believes that opacity is a hallmark of the currency market, the spread of information causes the first state of mutual ignorance and educates uninformed traders because the news is scary. The price detection mechanism contributes to the impact of inventory and the stable value of the market currency.

Therefore, the model for measuring stability coin generation is to look at liquidity, not to assess whether the asset has sufficient collateral or to question its transparency. As a result, TerraUSD's stable assets, UST, have reached tens of thousands of dollars in advertising, no real assets, and still depend on the revenue of the Terra ecosystem and its connection with IBC.

With its “Asset Audit Quarterly Report” and “Daily Financial Statement Review”, the USDT asserts that the USDT report is still secure and that assets are once again good and sufficient to support business. State of mutual ignorance (symmetrical ignorance) State of mutual consent.

The current state of transparency of the USDT can help increase capacity without affecting liquidity, it adheres to the principle of monetary policy, creating mutual respect, dual market approval and profitable, and enables the USDT to expand worldwide.

liquidity kom zoo dua

The advantages of USDT in general areThe number of chain exchanges, the depth of the exchange, the depth of the OTC to fiat currency and the use of the chain.

According to packaging data from CoinMarketCap on December 30, USDT's daily turnover was $ 64.7 billion, accounting for 87.13% of total fixed capital of $ 74.3 billion, plus second place BUSD 4.3 billion USD and 36th place. USDC with a volume of several million dollars.

The recent stable market value of TerraUSD reached $ 10 billion, but the market volume was only $ 129 million, with volume / market value of only 1.3%, compared to USDT's 83%. , which means that most USTs are not there. . Travel and get undermined by DeFi which means you are locked in a swimming pool.The performance of UST and USDT gains varies widely.

The USDT still has the most trading partners on the exchange and is the most lucrative for trading crypto assets. Second, for escrow exchanges outside of North America, most only offer a USDT trading partner for the local currency. OTC trading is also monopolized by USDT trading. Global liquidity and diversity is the most irreplaceable USDT delivery mechanism to better meet North American laws, but the difficulty of meeting the liquidity needs of globalizing markets cannot shake the position. of the USDT.

Not only is the local fiat trading partner USDT stable in liquidity, but the USDT is often appreciated against the USD, which is easily compared to the exchange rate between the US dollar and the local fiat. For example, MAX, the most popular fiat gold deposit site in Taiwan, only supports USDT for fiat exchange stability coins, while the USDT / TWD exchange rate is 27, 83 and the USD / TWD exchange rate is slightly lower at 27.64, making the USDT a nuance. State. on paper. Much larger than the long-term USD on the Binance exchange, the Turkish fiat currency TRY has a similar value to the USDT, further increasing the trading volume of the USDT around the world.

In the approved cryptocurrency report released by Chainalysis, the least developed countries - Vietnam, India, Pakistan and Ukraine - rely on the OTC deposits of the USDT and the local centralization on the ground in India and Ukraine. The only market provided by the exchange is the USDT, and other stable currencies such as the USDC and GUSD do not have enough water for the USDT to be exchanged for local currencies.

Judging by the volume of each trading partner of the largest Binance exchange, the first option for most cryptocurrencies is still USDT rather than a direct trade for BTC or ETH. Even on the Binance Exchange, any fiat currency for the BUSD remains a niche option, with commodities lower than the USDT. The link between the USDT and global earnings and real economic life is now difficult to shake for other stable currencies.

digital dollar dream

Currently, USDT's biggest competitor in cryptocurrency is USDT. Although the USDT and the USDC seem to have the same goal:It has become the de facto digital dollar.Their development logic is different.

While USDT depends on market conditions (the need for high capacity), USDT's growth depends on loan demand and DeFi-led Yield Farming.

While USDC's growth is expected to continue to extend to the DeFi ecosystem, one of the current growth challenges is that in terms of interconnected chains, each Connecting public ecosystem seeks to create and maintain a stable currency. in USD in the ecosystem. There will be BUSD, Terra and Cosmos Ecology will have UST, and the new giant DeFi will have MIM, which will affect USDC in the DeFi ecosystem to some extent.

The USDC also faced a crisis of confidence last year. USDC's July 2021 Reserve Report by Circle found that 61% of its equity is made up of cash and US Treasury bonds, while the remaining balance is made up of Yankee certificates of deposit. 13%). ), commercial contracts (9%), companies (5%), city contracts (0.2%) and government contracts (0.2%) also lead to criticism and non-criticism. % Cash and shorted US Treasury bonds. Circle said in October it received a complaint from the SEC requesting information.

Although all stowaways with the hegemony of the US dollar, the profits of the USDT and sufficient capacity now in the world have strengthened the dollar as a hegemonic currency in the value of digital tools. The number of users of the digital world of the dollar is strengthening the presence and penetration of the US dollar in the online and global world.

Stablecoins not only work on blockchain exchanges, but also have a major impact on actual trading. The fast and low USDT exchange rate makes it a viable tool for cross-border trade to avoid skin bank charges.

The Federal Government for National Development (NOW), a shadow government formed against the Myanmar government in December 2021, has announced that it will use USDT to its advantage to avoid neglect and spread across the country. Bonds in USDT.

Many TRYs switched to USDT as a precaution during Turkey's legal tender turmoil last year. The stable price of USDT has been recognized around the world. , create multiple application scenarios that can be used for payment exchanges that cannot be replaced by other fixed benefits.

Additionally, the U.S. government's strong position on the coin is the work of several cryptocurrency law regulators, and the actual situation is volatile. In a recent debate on the US Senate Banking Committee's stable case, Democratic Senators Elizabeth Warren and Sherrod Brown argued that all fixed income coins are prone to fraud and should be prosecuted. . Development.

Connor Spelliscy, founder and researcher of the Blockchain Association, an African blockchain policy advocacy group, believes:While the availability of a stable coin does not affect the US dollar, it can help expand the circulation of the USD, create greater demand for the USD, and maintain the hegemony of the USD. US dollar state.

So from a macro perspective, too much surveillance of the current best interest, the USDT, could be detrimental to the interests of the United States and its implications. State modify USDT position. . not found. The movement is not good, the outcome of the ordeal is really not high.

However, the absence of USDT in the development of decentralized applications is another concern for future developments. The Uniswap exchange between WETH and USDC is important, while PancakeSwap is generally based on WBNB and BUSD.

In summary, the USDT is not only an important stable currency for the middle class with the most valuable and profitable commodities, but it is also slowly entering the supply chain.Be the bridge between the world of cryptocurrency and the world of fiat., playing the role of the digital dollar in demand, and current models and situations hard to break.