USDT circulation Increases by 150%, is cryptocurrency the Noah’s Ark of assets?

Affected by the epidemic, the global economy has begun to enter a downturn.

As the place where the epidemic is most severely infected, under the efficient control of the state and the government, the epidemic has been gradually suppressed. I had just wanted to breathe a sigh of relief, but unexpectedly, the epidemic has quietly expanded the battlefield to the world. As the number of infected people in South Korea, Iran, and Italy soared, we discovered later that the struggle between humans and the epidemic was not about to end, but just started.

Driven by such a panic, investors around the world have sold assets madly, causing the stock market to have been hit hard in the past week. Even if it is as strong as U.S. stocks, it can not escape doom. In a week, a huge amount of assets evaporated in U.S. stocks. What is the huge amount? There are almost as many Hong Kong stocks!

China, as the place where the epidemic is most severely infected, under the efficient control of the society and the government, the epidemic has been gradually suppressed. I had just wanted to breathe a sigh of relief, but unexpectedly, the epidemic has quietly expanded the battlefield to the world. As the number of infected people in South Korea, Iran, and Italy soared, we finally discovered that the struggle between humans and the epidemic was not about to end, but just started.

Driven by such a panic, investors around the world have sold assets madly, causing the stock market to have been hit hard in the past week. Even if it is as strong as U.S. stocks, it can not escape doom. In a week, a huge amount of assets evaporated in U.S. stocks. What is the huge amount? There are almost as many Hong Kong stocks!

 

What about the digital asset market?

It is obvious that the cryptocurrencies market has also been affected. However, because the price of cryptocurrencies fluctuates, this decline is normal for crypto-investors who have seen the world, but Bitcoin, has fallen from US $ 10,000 to US $ 8,500.

But this phenomenon is actually interesting.

Why does the crypto-assets  look solid despite the sharp decline in global investment prices? U.S. stocks have almost reached a new high since World War II, and for digital assets, the impact is not as good as that of the “94”?

In this regard, many big Vs may have to use the so-called “hedging properties” to flicker. I have always thought about this. The total market value of cryptocurrencies today cannot afford global investors to hedge. Demand, the reason why investors are willing to invest money in the digital asset market, just simply want to make money.

And the money-making effect of this market really really has to start!

After the bull market of 2017 passed, the blockchain market has actually been in a slump. Most people think that the bull market of the blockchain is no longer, and the enthusiasm of investors will naturally fade. In the market, more stock funds are playing games, increasing Funds have not flooded into the digital asset market on a large scale.

But what I want to tell you is: the above is all wrong!

The price reflects only the point of supply and demand balance. The specific supply and demand is 1: 1 or 100: 100, which cannot be seen from the price. So what does supply and demand look at? A good indicator is the liquidity of USDT.

If you want to enter the market to invest in cryptocurrencies, you can of course buy Bitcoin directly, but it is safer to change the fiat currency into a digital stablecoin first, and then display the market to enter the market separately. USDT is firmly seated in the first market share of stablecoins and is the first choice of most investors. Therefore, the circulation of USDT can basically reflect the situation of funds in the market.

What about the digital asset market?

It is obvious that the cryptocurrencies market has also been affected. However, because the price of cryptocurrencies fluctuates, this decline is normal for crypto-investors who have seen the world, such as Bitcoin, which has only fallen from US $ 10,000 to US $ 8,500.

This phenomenon is actually interesting.

Why does the crypto-assets look solid despite the sharp decline in global investment prices? U.S. stocks have almost create the maxmium decrease since World War II, and for digital assets, the impact is not as severe as that of the “Chinese 94 event”.

In this regard, many influencer of blockchain field may attribute it to the hedging demand of capital. They think the crypto market is just as stable as gold market when economy crushed, but this view is totally wrong.. The total market value of cryptocurrencies today cannot afford global investors to hedge. The reason why investors are willing to invest money in the digital asset market, just simply want to make money.

And the money-making effect of this market really really has to start!

After the bull market of 2017 passed, the blockchain market has actually been in a slump. Most people think that the bull market of the blockchain is no longer, and the enthusiasm of investors will naturally fade. In the market, more stock funds are old ones, increasing new funds have not flooded into the digital asset market on a large scale.

But what I want to tell you is: the above is all wrong!

The price reflects only the point of supply and demand balance. The specific supply and demand is 1: 1 or 100: 100, which cannot be seen from the price. So what does supply and demand look at? A good indicator is the liquidity of USDT.

If you want to enter the market to invest in cryptocurrencies, you can of course buy Bitcoin directly, but it is safer to change the fiat currency into a digital stablecoin first, and then invest in batches. USDT is firmly seated in the first market share of stablecoins and is the first choice of most investors. Therefore, the circulation of USDT can basically reflect the situation of funds in the market.

 

According to DappTotal statistics ( A high quality website recorded by BLOCKSITE), from January 2019 to the present, the total circulation of USDT has increased from 2 billion US dollars to nearly 5 billion US dollars, an increase of up to 150%, and investor enthusiasm remains high .

And even in the past week of U.S. stocks plummeting, USDT’s circulation has increased by nearly 100 million US dollars against the trend, which is an absolute positive signal for the digital asset market and an investor’s vote in real money.

Looking at the performance of the past year, we should remain absolutely optimistic.
First of all, for any market, the influx of incremental funds indicates a positive expectation for the market. Under the premise of the slowdown of the overall global economic growth in 2019, the 150% growth in the digital asset market is definitely a miracle satisfactory answer. The broad prospects of this market are undoubted.

Secondly, the 2020 currency circle once every four years is about to come, and this time the Bitcoin halving has a greater boost than before. Although they are all halved, the number and scale of miners that have been affected in previous times are completely different from this time. The larger the market size, the more stable the coin price increase caused by the halving will be more determined.

Finally, as a practitioner, I can deeply appreciate that the industry is moving towards regularization little by little. The compliance process of the exchange is visible to the naked eye. The efforts of the project party to consolidate the technical foundation and build the ecology are also driving more and more blockchain applications to land.

Therefore, thousands dollars fluctuations is not a big deal, only need to hang in there for a while, the crypto market will finally to da moon.

Writer:  J.K Hou, CEO of BLOCKSITE

Comments: 
Chinese 94 event:  China banned the issuance of digital currencies on June 4, 2017, which led to a significant decline in the cryptocurrency market.

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