The issue is tied to the dollar token has no effect on Bitcoin. To such conclusion Vang Chong Wei, lecturer at the school of business at the Queensland University. Tether was the cause of many scandals in the past year, but they were all unfounded. The details of the study Wei understood Coindesk.
Tether Bitcoin is not a hindrance
His thoughts Wei has published the article “the Impact of emissions Tether on Bitcoin”.
The release of each new batch of coins USDT was accompanied by sharp price jumps in Bitcoin and increased trade volumes. However, the impact of Tesera on the main cryptocurrency statistically undetectable, so cannot be considered a serious tool for manipulation.
Recall that each coin USDT tied to one U.S. dollar. The stock of Fiat is kept by the Issuer, although many doubt this — Tether refuse to undergo a public audit. This issue does not affect the Wei, as it focuses only on the economic aspects of the problem.
In January, an anonymous enthusiast has published its own investigation into “The Tether Report”, which criticizes stablon due to manipulation.
High correlation between the price of the home cryptocurrency and the issue of the Tether leads to an interesting thought: how the growth of Bitcoin depends on the release of the USDT? It really reinforced the issue USDT beginning of the uptrend for Bitcoin? If this is true, then the real price of Bitcoin should now be above 2000 dollars on the basis of the trend line with previous years.
Criticism received a reply from Wei. The expert noted that the increase in trading volumes in pairs with USDT does not always leads to growth. Moreover, these factors are almost independent from each other. For practical testing possible market scenarios Wei has created a special mathematical model.
It turns out that inside it is the change of variable USDT does not affect the parameters of Bitcoin. Besides, for once Tether has released a total of 250 thousand tokens, but it does not go to any comparison with the trading volume of Bitcoin, which reaches the equivalent of 5-10 billion dollars a day.
SUBSCRIBE TO OUR CHANNEL IN THE TELEGRAM. THERE’S MORE INTERESTING NEWS.