On the other hand, as a stablecoin
, it’s also been called ‘the most useful cryptocurrency in existence’, since its price is pegged to the dollar.
But today I’m not here to join in on this debate.
Instead, I’m going to share another story regarding Tether: Its major supply shift.
And why this is huge news for Ethereum…
“If you want to make a killing from cryptocurrencies – read this bookas FAST as you bloody can!”
I’d like to rush you a copy of my book, Crypto Revolution, right away.
Inside you will find everything you need to understand this financial revolution…
And take maximum – potentially life-changing – advantage of it.
Including the name of the coin I am calling “The Bitcoin Killer”…
A cryptocurrency that could ultimately climb 20,000% from where it sits today.
That’s the kind of move that turns R2,500 into R500k over the longer term.
You’ll get the name of that crypto… my full case for why it could rise to become the #1 crypto in the world…
And my full analysis on the entire cryptocurrency landscape, all in my book.
The death of Bitcoin-based Tether
What you might now know is that Tether is built on top of bitcoin. So, if you ever want to move it between different exchanges, or into your own wallet, you’ll be waiting a while.
For example, Kraken, a major US exchange, states that to deposit Tether into your account takes 60 minutes. And on Binance, every time you want to withdraw Tether, you must pay around a $6 fee.
Simply, it’s too slow and expensive.
However, consider Ethereum, which takes only around six minutes to deposit on Kraken. And Binance charges a 0.01 eth (around $2.16) fee on withdrawals.
Other major cryptos like Ripple and Stellar deposit almost instantly. And many cryptos are so cheap to send that their withdrawal fees are negligible. NANO, for example deposits near instantly and has a 0.01 fee (around $0.01) to withdraw.
So, the fact Tether is based on bitcoin has become a problem.
Here’s what did Tether do?
Tether started moving off bitcoin and onto Ethereum
This is what they said back in 2018:
Following the widespread success of our Bitcoin-based USD Tether, issued via the Omni Layer Protocol, we have today launched and issued both US Dollars and Euros as Ethereum-based Tether, compatible with the ERC20 standard.
Since then, nearly a third of all Tether has been moved onto Ethereum. There are currently $3.7 billion Tether in circulation, and Ethereum now makes up $1.1 billion of that total. What’s interesting though, is last month that figure was around $600 million.
It’s only a matter of time before the entire Tether supply switches to Ethereum.
In addition, Binance – the biggest crypto exchange in the world – announced on 3 July, that soon it would only be using Ethereum-based Tether.
A straight up offer from one of South Africa's top financial analysts and small cap experts, Francois Joubert:
And share everything you need to potentially profit from them directly with you each week"
Why crypto (especially Ethereum) investors should take notice
It has to do with ‘The network effect’.
The network effect is one of the most important factors in new technological development. Basically, the more ‘network effect’ something gains, the more valuable it becomes.
According to Wikipedia:
A network effect (also called network externality or demand-side economies of scale) is the effect described in economics and business that an additional user of a good or service has on the value of that product to others. When a network effect is present, the value of a product or service increases according to the number of others using it.
The classic example is the telephone, where a greater number of users increases the value to each. A positive externality is created when a telephone is purchased without its owner intending to create value for other users, but does so regardless. Online social networks work similarly, with sites like Twitter and Facebook increasing in value to each member as more users join.
The network effect can create a bandwagon effect as the network becomes more valuable and more people join, resulting in a positive feedback loop.
Crypto investors know the bigger a crypto’s network effect the more valuable it becomes. So, for many in Ethereum, Tether switching from bitcoin to Ethereum is a massive plus. It shows Ethereum is not only a “world computer” but a store of value, too.
See you next week,
Managing Editor, Real Wealth