Tether, the issuer behind the leading stablecoin, USDT, has made headlines by acquiring $1 billion worth of Bitcoin—approximately 8,800 BTC—during the third quarter of this year.
While many investors have reacted positively to this significant investment, caution has emerged from industry experts like Jacob King, CEO of SwanDesk, who warns that this move may contribute to what he believes could be the “largest bubble in history.”
This narrative has been ongoing for years, provoking varied responses within the community. One investor countered King’s assertion by asking why major institutional players, including sovereign ETFs and Fortune 500 companies, continue to invest in Bitcoin if such a large portion of the trading volume is deemed fake.
His argument suggests that either these institutions are misinformed or that the real bubble lies within traditional fiat currencies rather than cryptocurrencies like Bitcoin.
He alleged that the company’s co-founder, Michael Saylor, has a history of inflating numbers during the dot-com bubble, suggesting that the current situation is a repetition of “past mistakes.”
He argues that this regulatory framework could channel trillions in offshore Eurodollars into US bonds through stablecoins, effectively continuing quantitative easing but through these private entities rather than the Federal Reserve (Fed).
Featured image from DALL-E, chart from TradingView.com
