Bitcoin has reigned as the undisputed king of cryptocurrencies since it was created a little over ten years ago.
The bitcoin price has soared, with some ups and downs, over the last decadeclimbing to around $11,300 per bitcoin today and giving bitcoin a total value of over $200 billion.
Now, as the market for stable coinscryptocurrencies pegged to traditional currencies or assetshas doubled in the last three months, a new report has predicted the largest stable coin, the controversial tether, could become the second most valuable cryptocurrency after bitcoin as soon as next yearwith "the still deflating broad crypto-asset bubble ... migrating assets toward tether."
Bitcoin remains the most valuable cryptocurrency by a considerable margin--but the stablecoin tether ... [+] has begun to dominate crypto exchange trading.
"Tether represents what many of the so-called cryptocurrencies aren't: a stable form of payment," Bloomberg senior commodity strategist Mike McGlone wrote in the company's Crypto Outlook report for the fourth quarter of 2020.
Over recent years, bitcoin's primary use case has evolved from a payments system to a store of value and more recently as a hedge against the inflation some see in on the horizon. McGlone expects recent unprecedented central bank stimulus spending and rising debt-to-GDP levels around the world to act as a strong tailwind for the bitcoin price, putting it on course to reach a whopping $100,000 per bitcoin by 2025.
"Indicating demand for a digital version of gold (bitcoin) and a crypto-asset like the dollar, if current trends prevail, the market cap of tether may surpass ethereum next year," McGlone wrote, adding it "should take something significant to stall the increasing adoption of tether" which has been growing "rapidly" in contrast to "the stagnant market cap of ethereum."
Ethereum currently boasts a market capitalization of a little over $40 billion, compared to tether's relatively paltry near-$16 billion. However, tether's total value has ballooned 300% over the last 12 months, while ethereum's has merely doubled.
Bitcoin's market value has risen at an even slower pace than ethereum, adding just under 40% since this time last year.
Meanwhile, tether's cumulative transaction volume has increased by around 20% over the past 30 days to climb above $600 billion, according to blockchain analytics firm Glassnode. Tether's daily transaction volume is around $35 billion according to an average from cryptocurrency data sites CoinGecko and CoinMarketCap, with bitcoins average daily transaction volume put at between $20 billion and $25 billion.
Elsewhere, data from analytics provider Skew has found futures contracts based on tether are now "almost on par" with those based on bitcoin.
As much as 70% of exchange trade volume is now denominated in tether, up from only a tiny fraction of the trade volume in 2017 when bitcoin accounted for 50% of trades, according to data from CryptoCompare.
Tether's cumulative transaction volume has soared by around 20% over the past 30 days to over $600 ... [+] billion, according to on-chain analytics provider Glassnode.
Tether's management, which shares considerable overlap with the Hong Kong-based and British Virgin Islands-registered Bitfinex bitcoin and cryptocurrency exchange, is keen to play down any suggestion tether is aiming to eventually displace bitcoin at the top of the cryptocurrency pile.
"Aside from bitcoin, of course, which is the king of all cryptocurrencies, tether is in some respects the digital asset of our times," Paolo Ardoino, the chief technology officer at Tether Limited, said in response to the Bloomberg report, adding: "We definitely see tether as a complement to bitcoin rather than a competitor."
"Of course, we dont see ourselves as competing with ethereum. Nevertheless, eclipsing ethereums market capitalization ... will be a powerful statement. Tether once again proves itself to be one of the most trusted assets in the crypto space."
Tether has had its fair share of problems, however. Over the summer, a New York court allowed the states attorney general to pursue a claim that Bitfinex, hid the loss of over $800 million in client and corporate funds. Tether Limited has also failed to satisfy critics that have suggested tether tokens aren't fully backed one-to-one by U.S. dollars.
Looking ahead, the rise of stable coins in recent years has been taken as a sign of coming central bank adoption of digital currencieswith some suggesting central bank take up could provide the market with much-needed support.
"Increasing adoption of stable coins is likely a precursor for central bank digital currencies and promises to be more enduring than alt-coin speculative excesses," wrote Bloomberg's McGlone.
Has Bitcoin Finally Met Its Match? - Forbes
- Bitcoin Price Targets by Analysts for 2021 and Beyond - Barron's - December 3rd, 2020
- Why Ethereum and Bitcoin Are Very Different Investments - CoinDesk - CoinDesk - December 3rd, 2020
- Bitcoin Sees Record Number of Active Users as Price Almost Hits $20K - CoinDesk - CoinDesk - December 3rd, 2020
- 3 reasons why Bitcoin price violently rejected near $20,000 - Cointelegraph - December 3rd, 2020
- Why one analyst says Bitcoin is on the cusp of busting through $20K - Cointelegraph - December 3rd, 2020
- Dont get caught up in the hype as bitcoin hovers around $19,000 - CNBC - December 3rd, 2020
- Bitcoin Price Hits All-Time High Above $19,000, Topping 2017 Record - The Wall Street Journal - December 3rd, 2020
- Over 5000 Bitcoin Worth $97 Million from the 2016 Bitfinex Hack Spring Into Action - Bitcoin News - December 3rd, 2020
- Bitcoin moves $500K around the globe every second, says Samson Mow - Cointelegraph - December 3rd, 2020
- Bitcoin hit the $19,800 mark. What the IRS wants to know about your holdings - CNBC - December 3rd, 2020
- Bitcoin.com Exchange To List HUB Token as the Next Gen Trust-Based Cryptocurrency | Press release - Bitcoin News - December 3rd, 2020
- Mogo Reports 135% Increase in Bitcoin Transaction Volume in November - Business Wire - December 3rd, 2020
- Bitcoin Climbs to Record High - The New York Times - November 30th, 2020
- Bitcoin Rallies Above $19,000 After Biggest Rout Since Pandemic - Bloomberg - November 30th, 2020
- Canadian Public Company Dumps Ethereum and Monero for Bitcoin | News - Bitcoin News - November 30th, 2020
- Bitcoin may see major price volatility at the start of December Here's why - Cointelegraph - November 30th, 2020
- Weekly Recap: Bitcoin and Ethereum Trigger Mass Liquidations - FX Empire - November 30th, 2020
- Russia to Recognize Bitcoin as Property With Legal Protection | Regulation - Bitcoin News - November 30th, 2020
- Bitcoin, Ethereum, Ripples XRP, Litecoin And Chainlink Suddenly Bounce Back - Forbes - November 30th, 2020
- Fighting Definancialization: Cryptologic Methods Like Bitcoin Could Protect Wealth From the Great Reset | Featured - Bitcoin News - November 30th, 2020
- Some Investors Predict Bitcoin to Hit $100,000 in a Year - VOA Learning English - November 30th, 2020
- Introducing MoonDeFi, a New Part of Decentralized Finance | Press release Bitcoin News - Bitcoin News - November 30th, 2020
- Bitcoin analysts explain what's next in the aftermath of BTC plunging to $16.2K - Cointelegraph - November 28th, 2020
- Bitcoin loses steam after nearing all-time highs, but trader says it could be on track to $74,000 - CNBC - November 28th, 2020
- Bitcoin plunges by nearly $3,000 after closing in on its all-time record - CNBC - November 28th, 2020
- Veteran Analyst Says BTC Might See Further Correction but 'Prices Have Not Topped' | Markets and Prices - Bitcoin News - November 28th, 2020
- Bitcoin's Carnivore Cult Is Both Stupid and Correct - CoinDesk - Coindesk - November 28th, 2020
- Ether, XRP and other 'altcoins' rally as bitcoin heads for all-time high - CNBC - November 28th, 2020
- Mike Novogratz: Everyone Should Put 2% to 3% of Their Net Worth in Bitcoin | News - Bitcoin News - November 28th, 2020
- Why Bitcoin price just hit $19,000 for the first time in 3 years - Cointelegraph - November 28th, 2020
- Will 'money printer go brrr' rob Bitcoin of its all-time high? - Cointelegraph - November 28th, 2020
- Why Is Bitcoin's Price Rising? Here Are a Few Possible Answers - CoinDesk - November 28th, 2020
- OKEx Sees Biggest Bitcoin Outflow in 8 Months After Resuming Withdrawals - CoinDesk - CoinDesk - November 28th, 2020
- Bitcoin faces this final resistance zone before $20K all-time high - Cointelegraph - November 28th, 2020
- EURST Stablecoin Reinvention of the European Economy | Sponsored - Bitcoin News - November 28th, 2020
- Bitcoin hopes of record value of over $20,000 dashed after cryptocurrency falls again - Sky News - November 28th, 2020
- Should you invest in Bitcoin and how to do it - Telegraph.co.uk - November 28th, 2020
- Russian Hospitalized After Bitcoin Mining Farm Sets Apartment on Fire - CoinDesk - CoinDesk - November 28th, 2020
- Researcher Publishes Never Before Seen Emails Between Satoshi Nakamoto and Hal Finney - Bitcoin News - November 28th, 2020
- OKExs Withdrawal Suspension Isnt Behind Bitcoins Rally: Analysts - CoinDesk - CoinDesk - November 28th, 2020
- Bitcoin now has a 7% chance of beating $20K highs in the next 2 months - Cointelegraph - October 23rd, 2020
- For the first time since 2018 Bitcoin balances on exchanges fell below 2.5M - Cointelegraph - October 23rd, 2020
- Bitcoin top signal from 2017 reappears, but heres why it may not matter this time - Cointelegraph - October 23rd, 2020
- First Mover: PayPal Rushes In and Bitcoin Breaches $12K, While USDC Gains on Tether - CoinDesk - CoinDesk - October 23rd, 2020
- Macro Investor Dan Tapiero on Crypto Adoption: Emerging Economies Ahead of Developed States | News - Bitcoin News - October 23rd, 2020
- Ban All Ransomware Payments, in Bitcoin or Otherwise - CoinDesk - CoinDesk - October 23rd, 2020
- Hotel Bitcoin ATMs on the Rise With Addition of Swiss Hotel Dolder Grand | News - Bitcoin News - October 23rd, 2020
- World Gold Council Survey Shows Cryptocurrency Investment the 5th Most Popular in Russia - Bitcoin News - October 23rd, 2020
- Ethereum Q3 Volume Dwarfs Bitcoin's, Fueled by DeFi - Decrypt - October 23rd, 2020
- Crypto fans rejoice: Bitcoin rallies to the brink of $12,000 - Aljazeera.com - October 23rd, 2020
- 187,000 BTC Drained: Over $2 Billion in Bitcoin Leave the Top Exchanges Since June | Exchanges - Bitcoin News - October 19th, 2020
- A Former Goldman Sachs Hedge Fund Chief Has Predicted Bitcoin Will Surge To $1 MillionHeres Why - Forbes - October 19th, 2020
- Bitcoin minings future is green, and Russia has the best chance - Cointelegraph - October 19th, 2020
- Bitcoin rips and cruise ships: Bad crypto news of the week - Cointelegraph - October 19th, 2020
- Where Does Bitcoin Fit in the Global Reserve Currency Game? - CoinDesk - Coindesk - October 19th, 2020
- Enormous wall of money will send Bitcoin to $1M in 2025 Raoul Pal - Cointelegraph - October 19th, 2020
- Bitcoin's Intrinsic Value: Crypto Community Responds to Bank of England Governor | News - Bitcoin News - October 19th, 2020
- Bitcoin Price Ready For a New Pop Will It Do It Today? - InvestingCube - October 19th, 2020
- 'Enormous Wall of Money' Coming Into Bitcoin, Price to Reach $1 Million in 5 Years, Says Raoul Pal - Bitcoin News - October 19th, 2020
- Bitcoin and Ripple's XRP - Weekly Technical Analysis October 19th, 2020 - FX Empire - October 19th, 2020
- Blockchain Bites: Bitcoin on Ethereum The Whos, Whats and Whys - CoinDesk - CoinDesk - October 19th, 2020
- First Mover: Privacy Is Litecoin's Ace in the Hole as JPMorgan Touts Bitcoin - CoinDesk - CoinDesk - October 19th, 2020
- Hathor Merge Mining Pool Commands 33% of the Bitcoin Cash Hashrate - Bitcoin News - October 19th, 2020
- Cashfusion Use Increased by 328%, $200M in BCH Fused and Close to 20,000 Fusions | Privacy - Bitcoin News - October 19th, 2020
- The Silk Road Balance Sheet Discrepancy: Bitcoin Worth $4.8 Billion Still Missing | Featured - Bitcoin News - October 19th, 2020
- Bitcoins Taproot is ready to go, but it's unlikely to be included in the next release - Cointelegraph - October 19th, 2020
- How will the US presidential election affect the price of Bitcoin? - Cointelegraph - October 11th, 2020
- $12K Bitcoin price back on the table after BTC rallies above $11.4K - Cointelegraph - October 11th, 2020
- Coinbase's 'Mission' Violates the Spirit of Bitcoin - CoinDesk - CoinDesk - October 11th, 2020
- Bitcoin: the UK and US are clamping down on crypto trading here's why it's not yet a big deal - The Conversation UK - October 11th, 2020
- Lyn Alden: Bitcoin Correlations Depend on What Phase It Is In - CoinDesk - CoinDesk - October 11th, 2020
- UK Bans Sale of Crypto Derivatives to Retail Investors from January 2021 | News - Bitcoin News - October 11th, 2020
- Yearn Finance Token Value Slides 67%, While Locked Value Loses Over $300M | Altcoins - Bitcoin News - October 11th, 2020
- Bitcoin price holds $10.5K but a $30M sell wall looms overhead - Cointelegraph - October 6th, 2020
- Bitcoin To Hit $100,000 in Five Years as Demand and Adoption Increase - Report | Markets and Prices - Bitcoin News - October 6th, 2020
- Trump, price dots and COVID-19: 5 things to watch in Bitcoin this week - Cointelegraph - October 6th, 2020
- $8M Worth of 'Sleeping' Bitcoin Rewards from 2010 Moved the Day Before 'Black Thursday' - Bitcoin News - October 6th, 2020
- Interest in Bitcoin Soars in Egypt Amid Economic Crisis and Unemployment | News - Bitcoin News - October 6th, 2020
- A Major Tesla Investor Has Predicted Bitcoin Will Be Worth More Than $1 Trillion In Under 10 Years - Forbes - October 6th, 2020
- Crypto for Congress: Bitcoin Sent to All Congress Members' Campaigns | News - Bitcoin News - October 6th, 2020