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By definition, stablecoins are cryptocurrencies that are meant to maintain stability in relation to a fiat currency such as the US dollar. In May 2023, the largest stablecoin in the world is Tether (USDT), with a supply of just under $83 million.
In order to stay stable, Tether will need to invest some of its profits into diversification. Its creators plan to use 15% of net profits to get ahold of Bitcoin (BTC). Judging by Tether’s most recent profit report, the BTC investment would amount to circa $222 million.
The Chief Technology Officer of Tether, Paolo Ardoino, recently explained his company’s decision to invest in Bitcoin. According to him, everyone in the crypto business still has faith in BTC, even though its price has plummeted over the last couple of years.
Ardoino believes that Bitcoin has potential as an investment asset, not to mention that the world’s largest crypto has already proved to everyone that its resilient to crises.
Further, Ardoino stated that the adoption of Bitcoin is likely to increase in the years to come, which is guaranteed to make this crypto even more relevant in the business world.
By buying $222 million worth of Bitcoin, Tether will become one of the biggest crypto whales in the world. And this move could have a powerful impact on the trajectory Bitcoin is going to take in the near future.
The crypto winter seems to be over, and Bitcoin is once again a hot topic among investors. Not only is Tether planning to make a giant $222M investment in Satoshi Nakamoto’s project, but some big whales are also reportedly planning to enlarge their crypto assets.
All this is bound to have a good effect on Bitcoin, sending signals to other investors to follow suit. In turn, we could see the price of BTC go up in the near future. Actually, there’s been talk in the crypto community about the impending bullish run of Bitcoin, and the new investments are making this idea seem even more realistic.
At the moment of writing, BTC is priced at $26,620.10, which is one of the highest numbers it’s reached since the start of the year.
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