Cryptocurrency and decentralized finance has grown tremendously in recent years, and one of the key players in this sector is Tether. Tether issued its USD-pegged stablecoin in 2014 and has become one of the main providers of digital dollars over the past few years. According to the financial analyst that goes by 'girevik' on Twitter, Tether has used the profits it has made from its USD lending activities – which include accruing interest on US treasuries while paying its depositors 0% – to purchase around 52,670 Bitcoin in the first quarter of 2023. The CEO of JAN3, Samson Mow, believes this strategy could see Tether outpace MicroStrategy in terms of bitcoin purchases if sustained over the long-term, with a baseline of nearly 200,000 coins per year. Renowned investor and entrepreneur Lyle Pratt responded to Mow's comment, noting how powerful Tether has become as a bitcoin whale, with the potential to set the bitcoin price floor. Pratt proposed that Tether convert a portion of its treasury to bitcoin and make it public, for the purpose of insurance against "banking shenanigans". While so far Tether has invested $1.5 billion in bitcoin, based on the current trajectory, this figure is likely to increase to $6 billion if Pratt's suggestion is followed.

Despite the potential competition from Tether in terms of bitcoin purchases, the value of digital currency continues to grow and the opportunities created by decentralized finance are becoming more and more attractive for investors. Many financial analysts and bitcoin proponents have praised Tether's role in the sector, and with the digital dollar continuing to transition from the traditional banking system to the crypto space, it's likely that the stablecoin issuer will play a continuing role in providing liquidity and further enabling the growth of decentralized finance.



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