With over half a million Twitter followers, Peter Brandt is a well-known career trader who often tweets valuable market information. In a recent tweet, Peter took a stand on Tether, calling it an unnecessary wit fart.
Words of choice 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 to protect his store of wealth against inflation, is a meaningless process because it is no use to nothing.
Circular reasoning – TETHER
The idea that we convert one fiat currency unit (USD, EUR, etc.) to another fiat currency unit (tether) in order to protect the wealth reserve of the first fiat currency unit is nothing but a gigantic mental fart.
– Peter Brandt (@PeterLBrandt) August 16, 2021
While many 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 digital currency in a somewhat untrustworthy manner. Trust is at the issuer level instead of having to worry about this risk on every digital platform that one might use.
Related reading | Peter Brandt: 99% of Altcoins will be forgotten in five years
Another Twitter user claims that no one really converts traditional fiat into stablecoin to protect their store of wealth, that Tether and other stables are just a non-volatile bridge asset between transactions of more volatile transactions, without having to leave the field of cryptography.
Meanwhile, Tether continues to dominate the crypto market as the main stablecoin. As recently as yesterday, Tether’s market cap jumped to $ 64 billion, marking another milestone and another indication of the market’s continued confidence in Tether.
On August 9, Tether Holdings Limited, the issuer of the largest USDT stablecoin issued a new attestation report which covers useful information on the composition of its reserves in order to be more transparent.
Since March, when the company released its first attestation report vaguely revealing assets and liabilities, investors have been patiently awaiting a second report. In the latest attestation report, Tether not only included the composition of its reserves, but also provided a breakdown of the ratings and maturity of its commercial paper holdings as well as certificates of deposit.
Related reading | Brandt: You are wrong if you accumulate dollars on Bitcoin
As of June 30, 2021, the company owns $ 30.8 billion in PCs and CDs, or approximately 49% of its reserves. About 93% of them are rated A-2 and above and 1.5% are rated below A-3. Among other reserves, the company holds approximately $ 6.28 billion in cash and bank deposits, $ 1 billion in reverse pension notes and $ 15.28 billion in US treasury bills.
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