tether CEO Explains Why Bitcoin Is The World’s Most Beautiful Currency (Token2049 Dubai)
In a recent interview CryptoPotato During the 2024 Token2049 Dubai Conference, Tether CEO Paolo Ardoino talked about artificial intelligence, Bitcoin halving, recently launched ETFs, USDT’s market share and much more.
Ardoino, who is also the CTO of bitfinex, believes that stablecoins like USDT are created for the unbanked, not for developed countries like the USA.
Bitcoin ETF/Halfing Effect
The call was held just hours before the fourth halving was due to take place (in the early hours of April 20), and Tether’s chief executive agreed with CryptoQuant’s previous assessment that the effects of the event would fade over time.
This is because more than 19.5 million BTC has already been mined and the reduction in block production is now less effective than when it dropped from 50 BTC to 25 BTC.
He also stated that the halving is an event that people have seen coming and are known to be preparing for in advance. As a result, he suggested that there is a big chance that the halving is already priced in, especially considering that Bitcoin has risen to an all-time high this time.
However, Ardoino sees spot ETFs, which launched in the US in January this year, as the most bullish development in the cryptocurrency ecosystem. For now, mostly retail investors are pouring funds into ETFs and institutions have yet to enter the scene, according to BlackRock CEO Larry Fink.
Ardoino said even 1-2 percent buybacks from large traditional hedge funds and other institutions could lead to more significant price increases for BTC. He added that spot ETFs in the U.S. have made it much easier for retail investors, who until now lacked the knowledge, interest or confidence in purchasing bitcoin on crypto exchanges, to accumulate the asset.
Although he acknowledged that ETFs make it easier for people to start their bitcoin journey, he also noted that these products have some negative impact. When people buy shares of a spot ETF, they are doing the opposite of what Maxis believes: Bitcoin HODLers need to store their own assets outside of centralized institutions.
But all of this could change if beginners use ETFs as an entry point and start educating themselves on the true benefits of the world’s largest cryptocurrency rather than aiming for quick profits.
Paolo Ardoino. Source: Finnish year
Tether Competition and ETF Impact
Ardoino denied previous rumors that the approval and launch of spot Bitcoin ETFs would result in decreased interest in USDT and other stablecoins. On the contrary, he said, USDT’s market cap has increased by about $20 billion since January and is currently around $110 billion.
Trading volumes on Bitfinex, a crypto exchange that mostly serves institutional investors, have also increased significantly in the last 6 to 12 months after the ETFs went live.
In terms of competition for Tether’s stablecoins, especially the recent emergence and rapid growth of Ethena’s USDe, the executive said there would be no stablecoin industry if they were the only players.
He believes competition is good but people need to know the differences between all stablecoins as they are not created equal.
While most newly launched stablecoins favor DeFi, Tether’s goals are different:
Artificial Intelligence and the Future
Tether has made several AI-related initiatives in the past few months, and Ardoino said this trend will intensify in the future. He explained that the company only uses its profits to invest in artificial intelligence projects.
For example, Tether earned $6 billion in 2023 and used about 10% of it to allocate to different artificial intelligence investments. At the same time, the remaining $5.4 billion was used to further strengthen its stablecoin reserves, something the firm has been criticized for in the past.
Recently, Tether expanded two of its largest stablecoins onto TON’s blockchain, and there are already over 30 million USDT on the network.
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