- The increase in the magnitude of the total Tether ltd. printed throughout the year has been doubtful and criticized by well-known personalities in the financial market
- However, the CTO of Bitfinex and Tether, Paolo Ardino, has given both qualitative and quantitative reasons for tether printing and its continuous demand in the crypto market
- Dr. Nouriel Roubini, a well-known American Economist, criticized the rise in tether printing and denoted it as an illegal mechanism to pump the prices of Bitcoin
- This was not the first time Dr. Nouriel Roubini publicly opposed the crypto world. We have witnessed the controversial debate “The Tangle in Taipei” between him and Arthur Hayes, CEO of BitMex, which went quite personal and troublesome for BitMex.
As Paolo Ardoino was publicly announcing the significant rise in Tether’s numbers throughout the year, Dr. Nouriel Roubini condemned the whole mechanism ofT tether printing and denoted it as a another illegal step for generatingforgenerating the generation of fake money on a macro scale. However, Paolo Ardoino justified the rapid increase in USDT printing with fact and figures through escalating demand and usage of the stablecoin throughout the year.
What is Behind This Enormous Rise in USDT Printing?
Paolo Ardino provided a brief explanation regarding the rise in the numbers of USDT printing for the year. During March 2020, when the whole crypto market took a significant negative dip, including Bitcoin dropping by almost 50%, crypto investors were getting caught in trouble regarding the slow transfer of fiat currencies on fiat ramp exchanges. They were also exploited to drastic fall in the market. Therefore, for hedging purposes, the demand for Tether went relatively high. The interesting fact about the demand was that it did not come from outside sources, but the exchanges craved more USDT. He further explained the potential of this stablecoin, which could mount up to $100 billion due to an increase in OTC transactions for Bitcoin. In May 2020, Tether became the world’s third-largest crypto asset for quite some time after being taken over by XRP.
During July 2020, when the printing scale rose to $300 million, the community again started to receive criticism of fake mechanisms in the financial market. Some of the crypto users compared this rise in the printing of USDT with US feds as they kept fueling money into the economy during the pandemic, which could be the prime cause for the rising inflation. Paolo Ardino again came up with a valid response for the latest printing rise due to the required filling in the Tron Network inventory. The overall crypto market also welcomed this rise; specifically, Ripple’s XRP, whose on-chain volume rose to $1.75 Billion, and its mounted buying pressure helped to gain new price levels at the point of time.
Do Nouriel’s Opinion About The Crypto Market Makes Sense?
For acknowledging Dr. Nouriel Roubini’s thoughts on the crypto market, we need to have an overview of what the debate ‘The Tangle In Taipei’ between him and Arthur Hayes, CEO of BitMex, at The Asia Blockchain Summit was all about. Initially, the debate’s purpose was set to be on the crypto market’s security and scalability. However, it was turned and looking more like a vocal criticism. Dr. Nouriel Roubini aggressively used the term “Shitcoins” for all the cryptocurrencies present in the market and claimed Arthur Hayes as one of the many scammers present in the crypto world. He also added that the whole mechanism of the crypto market completely defies KYC norms, which are followed in the financial market of most of the countries around the globe.
Further on, he also claimed that the exchange and trading of cryptocurrencies had become a prime source for rising money laundering cases globally, and there is no such thing called AML in the market. However, we can say that the generations-old centralized market still has severe loopholes besides having formidable regulators and norms. Also, Dr. Nouriel Roubini might have underestimated the real potential of blockchain. Being decentralized and immutable, building an AML system can be processed and built in the real market.
TComing onto the counter presentedgiven by Arthur Hayes,was he mentioned that the Bitcoin is only a decade old and still having room for improvement, nevertheless giving tough competition to the centralized market, which is firmly established from generations. He also pointed out that if a specific component (community, exchange, crypto coin) is doing bad business in the blockchain world, the decline in their reputation will itself bring them down and taken out from the market.
One of the counters given by Arthur Hayes, which made utmost sense, was crypto market is the only free-market left in the world. He justified the statement by comparing big institutional investors against retail investors. In a centralized market, if a retail investor is placing his order in the order book and an institutional investor jumps ahead of him in the line, the big players have the luxury of registering their order first. Arthur Hayes termed it as manipulation besides the significant changes in the prices of crypto assets within a fraction of seconds. The frequent change in the crypto market’s price levels was termed as the real market or just market by Arthur Hayes.
Do Cryptomarket Faced Negative Impact From Dr. Doom Views?
The crypto market continued to outperform the centralized market after all the negative criticism given by Dr. Nouriel Roubini, and currently, Bitcoin is moving closer to its ATH. We have also witnessed a significant shift in the investor’s interest from a centralized market to a decentralized one. However, after the debate, BitMEX faced severe allegations from the regulatory authorities, including United States Commodity Futures Trading Commission, opening an investigation on Whether BitMEX broke framed regulations by allowing US residents to trade on its platform in 2019.
However, emphasizing one of the circumstantial examples given by Arthur Hayes in the debate that if you are a political activist antagonize rules and regulations framed by the central authority for the welfare of the society or retail investors, your only reliable source can be crypto currencies for funding purposes. Therefore, we can say that the blockchain world has delegated powers into the hands of the common man, taken as a threat by central bodies and authorities like Dr. Nouriel Roubini.