January 19, 2022 | 571 Views
In just a decade, Bitcoin has become a household name. This cryptocurrency is now used as a store of value and payment method by many people worldwide. In addition, numerous gamblers use Bitcoin (BTC) to fund their accounts regarding the latter. They like how their BTC deposits aren’t subject to third-party control and can’t be rejected. Bitcoin’s utility as an online gambling deposit method is just one reason why its value has skyrocketed in recent years. But is BTC worth this much? Especially when it still hasn’t achieved much mainstream adoption as a payment method? Maybe not. Some signs point to the possibility that Bitcoin’s price was manipulated and driven up by a stablecoin called Tether. If so, will BTC gambler’s bankrolls be decimated when or if the potential Tether (USDT) scam is exposed? We’ll answer this question by covering more on Bitcoin’s online gambling usage, Tether, and why USDT could crush the gaming market.
Tether is a cryptocurrency recognized to the US dollar at a 1:1 ratio. It’s known as a stablecoin because it acts as a substitute for USD when cryptocurrency traders move in and out of coins.
USDT is popular at exchanges that don’t offer fiat onramps (e.g., Binance). At Binance, for example, you need to transfer cryptocurrency to another business that deals in fiat before cashing out. However, you can also trade a coin for USDT and keep your funds on Binance. This scenario helps you move in and out of cryptocurrencies without sending your funds to another exchange. Tether Limited issues USDT. This company has claimed to be its separate entity. However, increasing evidence points to the Bitfinex exchange being behind Tether.
It might seem like the fate of Bitcoin and Tether should be utterly separate by this point. After all, BTC is much more famous than USDT. However, Tether can still bring down Bitcoin and all other cryptocurrencies. This is because it’s the subject of a federal case and may have been used to manipulate BTC prices. Assuming Bitcoin users and speculators alike find out that the latter is true, many will quickly sell Bitcoin. In turn, the price will plummet along with associated gamblers’ bankrolls. Some within the cryptocurrency community began crying fouls regarding Tether as early as 2016. Back then, journalists speculated that USDT was inflating trading volumes.
The New York Attorney General’s office claimed that Bitfinex used Tether to mask $850 in missing funds. In late 2018, the US launched a probe into Tether’s potential role in market manipulation.
Tether Limited lawyers have already admitted that the coin isn’t backed 100% by cash reserves. For years, the company had claimed that every currency was approved at a 1:1 ratio.
In January 2018, a report claimed that millions of Tethers were being issued out of thin air. This piece concluded that the unbacked USDT was being used to raise Bitcoin’s price artificially.
Between the lawsuit, federal case, and UT study, Tether is on shaky ground. The stablecoin isn’t so stable based on its $0.74 backing for every Tether. Assuming Tether Limited is exposed as a fraud, this event will likely impact BTC gamblers. After all, the Bitcoin price will drop tremendously if its current value is based on a lie. BTC experienced a sharp rise throughout 2017. It went from being worth $1,000 at the beginning of the year to hit almost $20,000 in December.
If Tether is indeed a fraud, how far will Bitcoin’s value drop? The freefall from the current $9k valuation would be anybody’s guess. We don’t believe that it’ll settle back down to the $1,000 price at the outset of 2017. After that, however, $2k or $3k could be in play. Your Bitcoin gambling bankroll would lose anywhere from 300% to 450% of its value in this scenario. You’d still have the same amount of Bitcoin, just not the same value in terms of USD. The long-term prospects for BTC may still be reasonable in light of Tether. It still has plenty of use cases due to its decentralized nature. But one shouldn’t tie up thousands of dollars in a Bitcoin gambling bankroll right now. Instead, we advise that you only make small BTC deposits until the Tether situation is resolved.
Bitcoin has proven useful in several regards, including online real money gambling. It offers a perfect way to make gambling deposits when traditional banking options are inconvenient.
Unfortunately, the cryptocurrency market has a dark cloud looming over its head in the form of Tether. Multiple signs point to the possibility that Bitfinex and Tether Limited used USDT to boost Bitcoin’s price artificially. Certain legal events could expose this fraud and send Bitcoin spiraling as a result. For example, legal proceedings have already forced Tether Limited to admit that USDT is only backed by $0.74 on the dollar.
Bitfinex and Tether Limited may very well be proven guilty of market manipulation next. In this case, you can guarantee that Bitcoin’s price will drop severely. You don’t want to have a large Bitcoin gambling bankroll in this case. That said, we recommend only depositing what you genuinely need to gamble with until the USDT drama comes to a close.