Essentially, by allowing exchanges to support fiat-like trading pairs, Tether makes it easier for cryptHardware required for Bitcoin miningocurrency exchanges like Binance or Bitfinex to exist outside of KYC/AML regulations. Most people in the world either don't trust the United States or simply cannot access the U.S. banking system. For these people and jurisdictions, Tether can give them a more flexible version of the dollar.
Chen Zhipeng: Another meaning of the currency reform is to change the currency. This is the opinion of Yuan Dao and Meng Yan. It is to change the unhealthy trends in the currency circle and self-purify the currency circle ecology. Having a good instinct to do things, a clear conscience is enough. In addition, as mentioned above, there are several compliant and legal methods for currency reform.
It is no secret that large investors are eager to enter the cryptocurrency market. In the corridors of large Dutch banks, some private bankers recommend that their wealthy clients invest 5-10% of cryptocurrency in 2020, and recommend that managers of family financial institutions (management offices of very wealthy individuals/family) also invest . Cryptocurrency companies such as Coinbase also stated that they receive hundreds of millions of dollars from institutional investors every week for savings or trading futures. The great thing about blockchain is that everything is transparent, and the scale of transactions and digital wallets is also transparent. A recent analysis of all Bitcoin wallets on Coinbase shows that the growth of large wallets is very strong.
When Jamie Dimon made these radical remarks, he did not understand cryptocurrency. He only knew that cryptocurrency would bring risks to his business, namely the banking industry. Therefore, it is in his interest to hinder Bitcoin or even kill Bitcoin. But this is impossible. Cryptocurrency is like Pandora's box, which has been opened. You can never let it shut down again.
In addition, USDT is also very popular in some black production transactions. CoinCMO Uncle Shi told Odaily Planet Daily that at present, the CX circle basically uses USDT for accounting. In addition, some casinos that choose digital currencies are now basically using USDT. USDT has been given part of the value of BTC in the past.
Another solution for Bitcoin's expansion is Blockstream's Liquid sidechain. This solution has been widely used for a long time, even surpassing the Lightning NetwoHardware required for Bitcoin miningrk in terms of the number of locked Bitcoins. As of this writing, the amount of Bitcoin held on Liquid's sidechain is approximately 1004 BTC.
Armstrong's views are consistent with most industry experts. It is very dangerous to store a large amount of Bitcoin in a hot wallet, because in this process, you not only need to rely on your own security measures, the system itself is not under your control, for example, the operating system may be attacked.
Bitfinex has always been criticized for its lack of transparency in operations, chaotic structure, and frequent hacker attacks. Some community observers claimed that Bitfinex may use the U.S. dollars of users to purchase USDT to redeem BFX debt tokens issued after the attack to make up for economically damaged users, instead of putting U.S. dollars in reserves. Tether was also targeted by hackers due to the ambiguous relationship with Bitfinex, and more than 30 million USD worth of USDT was stolen at the end of last year.
Duke University (Duke) economist Mike Munger (Mike Munger) divides transaction costs into three categories: Triangulation, which is how difficult it is to discover and measure the quality of services; Transfer cost, which refers to goods or services How difficult is it to reach an agreement on the contract of the company; the cost of trust (Trust), whether the counterparty is trustworthy, and if not, do you have the right of recourse?