Michael Saylor has always been vocal about the fear, uncertainty, and doubt (FUD) surrounding Bitcoin. He firmly asserts that the digital currency is unstoppable regardless.
The Tether (USDT) debacle has been going on for a while, and market participants usually love a good crypto drama.
Is Tether Driving the Market?
MicroStrategy CEO Michael Saylor maintains his strong belief towards Bitcoin. In a recent interview, he said that Tether was “totally irrelevant” due to how corporate investment in bitcoin actually works.
“I have talked to hundred-billion-dollar entities. I know at least ten of them that have bought at least 500 million or more bitcoin. They all wired cash into regulated exchanges. They buy the bitcoin, then it goes into cold storage.”
However, some crypto enthusiasts have shown contrary views towards this opinion. Some believe that shutting down Tether may have disastrous effects on the entire cryptocurrency market.
The uncertainties expressed here are based on the premise that USDT is a major on-ramp for inflows into bitcoin. Currently, Tether has the highest usage.
With a market capitalization of $25 billion, it has become the biggest stable coin. Perhaps this explains why many crypto investors see it as a lifeline for the survival of crypto exchange.
Meanwhile, Saylor buttressed his point by explaining that he bought bitcoin worth $1.3 billion by simply sending cash to a regulated exchange. He then sent bitcoin into cold storage. He added that Tether is insignificant in the grand scheme of things, saying that “nobody is using Tether.”
It’s unclear if Saylor is referring to over-the-counter (OTC) trades, though that’s likely the way he purchased the btc. According to him, Tether is merely a “successful FUD” and will not affect Bitcoin if taken down.
He maintains that stablecoins exist mainly for offshore exchanges with the need to carry out settlement. From Saylor’s perspective, corporate investors purchase the leading crypto with the hoards of actual dollars they already have.
Bitcoin is Monetary Energy
In a separate interview, Anthem Blanchard, the co-founder of blockchain firm AnthemGold Inc, also spoke with Saylor about Bitcoin. Anthem is the son and successor of Jim Blanchard, the man responsible for legalizing gold in the US.
Blanchard asked Saylor about his thoughts on bitcoin and the intrinsic value it holds as opposed to gold. In response, Saylor made an analogy saying that money carries energy and btc has the best capacity to store that power.
Accordingly, bitcoin serves as a money better than gold and will bleed the gold market over time.
“In essence, you’ve got a lossless energy battery. It [bitcoin] works as a network to collect monetary energy, to store monetary energy, to channel monetary energy. And you can almost think of the voltage as the price of bitcoin or the monetary force.”
His comparison described how moving electrical energy would be best done without losing power due to degradation.