We May See Cryptomarket Bottom with this.. (My Opinion)

I have been watching the last down leg in crypto prices and have a prediction that is worth discussing among fellow crypto investors. There have been speculation that Tether which is valued exactly at 1 USD per token is a scam. So my view on this prediction maybe bias but nevertheless please hear me out and decide for yourself.

Tether currently sits in 10th on marketcap. It is ahead of XMR, XEM, DASH and NEO to a few established cryptos. All the coins I listed has specific uses and identifiable developers trying to improve the coins' capabilities. While Tether is nothing more than a token. Other it is advertised as a token back by the real USD, one has to start pondering at what value it really is when there are billions of Tether while all other crypto coin prices continue to deteriorate?

Since the beginning of 2018 up to know we have seen most crypto prices fall and most fell swiftly. The most stable coin price during this downtrend has been Tether. Below is the screen shot of where Tether was ranked at the beginning of 2018:

Overall marketcap has remain pretty steady however it was not the case when at the last half of 2017. As a matter of fact Tether marketcap at the begining of 2017:

Between beginning of 2017 to beginning of 2018 the overall market cap of Tether increased by 2,700% while since then it has reason less than 10%. While the overall crypto market cap has fallen from high of over $800 billion to now slightly above $260 billion. There seems to be some correlation to the increase in Tether as crypto prices went up but when it went down Tether supply remain flat. What will happen if Tether remains flat while all other cryptos continue to fall. Of course it rises in market cap. But how would it make any sense to see a token that is backed by fiat be ranked near the top as worth wild investment.

It would not is my answer. The whole basis of being in crypto was to get out of the fiat systems we are currently using. Why would a token that even if is real is worth the fiat many developers of cryptos is trying to conquer. It does not make sense. My take is there are too much trading in crypto and not real long term holders. As the trades continue some traders will soon find themselves stuck with heavy losses.

The trading volume for Tether is second only to bitcoin. It is trading a hot potato where many holders of Tether prefer to trade Tether in hopes of flipping quickly for more of some other crypto. Yet what is not to say at some point crypto prices have drop to the point where Tether would not be accepted because the crypto coin/token that is being traded for is worth wild to hold.

It definitely is not a good sign to see Tether continue to rise in value as everything else falls. To see Tether be at the top would be ironic. The fiat that most of the world has trust in and is being sold in the crypto world as a token. Weird but not impossible. The only issue then becomes is do crypto investors really want to hold Tether when it is at the top of the market cap?

My opinion is no. There is no function or use to owning Tether. Therefore at some point in price and supply Tether will likely become less wanted when other cryptos are too cheap to sell. As more investors of crypto become users they will likely hold their coins for utilization versus trading back and forth for gains. At some price point Tether becomes the hot potato that nobody would trade for 1 USD.

Just throwing this out there and curious how others see it?

Thanks for reading.

If you wish to watch me try to grow my crypto wealth please follow me: @mawit07

Date of post: 8/5/2018