Comprehending various conjectures leading to the downfall of USDT and betterment in case of other altcoins subsequently.
What role does volatility play in the Crypto sphere?
The cryptocurrency market is densely stuffed with volatility, any kind of prediction undertaken with respect to the future price analysis is really probable to match with the expected result. This is one of the precise reasons that most of the native investors are away from the cryptocurrency space until now. But there are a few cryptocurrencies which are trying to bring in some kind of balance in this particular financial domain, in order to reach a greater market. Most of the cryptocurrencies follow the Bitcoin trend, in simple words, if Bitcoin is gaining momentum, all the other altcoins seems to be rising, and vice versa.
But recently, the experts have even realized that there are other few prominent currencies which may affect the prices of other Altcoins.
Below are some of the reasons why the fall of USDT is good for the Crypto market.
1. It is to be noted down the Tether cryptocurrency, is backed by, exactly equal amount of the US dollar, but the company has never given an opportunity for an external audit to check their Reserves. Therefore, the community members are always speculative about it. In this particular manner, the fall of USDT would invariably result in more number of investors joining the Crypto bandwagon.
2. It has also been noted down that when the company generates a new set of Tether tokens, the cryptocurrency experts have noted that the Bitcoin price starts falling respectively. This might be due to the generation of Tether coins, without backing it up by respective amount of reserves. Therefore, contradictorily when the incorporation of USDT would lower down, the prices of Bitcoin and all the other altcoins, as a result, would increase.
3. With the incorporation of USDT, various investors across the world were saved from the price slippages and volatility of the cryptocurrencies. Now, if they suddenly stop utilizing USDT and embrace other stable coins or altcoins, the usage of such coins would be increased automatically, by the community members.
4. This is also between practically evident, as recently, the price of USDT fell drastically and reached almost 73 cents. On the other hand, various altcoins like Ethereum and Ripple along with Bitcoin has also been showing a bullish trend, precisely resonating with the fall of USDT. Therefore, the fall of USDT would invariably result in the incorporation of other altcoins by the members in the Crypto sphere.
5. It is also been speculated that USDT is being incorporated, in order to instigate price fluctuations in the cryptocurrency market. Therefore, the fall of USDT would result in some kind of stability of the other cryptocurrencies, including Bitcoin.
6. It has been estimated that Tether Limited, the company behind the production and maintenance of USDT as produced over four times the actual amount of stable coin without actually displaying information regarding the backing up of the coins by a reliable auditing agency. Hence various banks and Crypto exchanges have stopped using USDT. This might create a negative fear, uncertainty, and doubt with respect to USDT and people might stop using it, which would indirectly accelerate the prices of other altcoins.
7. Other cryptocurrencies are developed based on a strict set of rules and regulations but this is not the case when it comes to USDT. Therefore, the downfall of USDT would invariably be helpful for the entire cryptocurrency market in general.
8. USDT is somewhere closely related to Bitfinex as the Crypto exchange stopped accepting Fiat currencies such as US dollars, Japanese Yen, or Euros. Before The Fall of USDT only seems to be happening as the number of Crypto entities join the bandwagon.
9. It has been a constant speculation regarding the transparency of USDT, as the organization has consistently been denying of an external audit. If the coin is really a scam, then the downfall of USDT would invariably be the best option for the development of various other altcoins.
10. It is also been rumored that Tether was actually being incorporated in order to mitigate the price fluctuations of other altcoins in a very unethical way. Therefore, such crypto coins have no space in the crypto economy, and the downfall of such cryptocurrencies would only be for the benefit of the community.