Tetherâ€™s Gold-Backed Stablecoin in Demand as Commodity Hits ATH
The price of gold and Tetherâ€™s XAUT rallied to more than $1,900 today, a value not seen since September 2011.
The Tether Gold stablecoin was valued at $1,902 on July 24, putting the price of gold within reach of the commodityâ€™s all-time high set in September 2011.
Gold has risen 22.7% from $1,550 to $1,902 since Tether Gold (XAUT) â€” a stablecoin allowing ownership of one troy ounce of gold held in a Swiss vault controlled by the company â€” was released on Jan. 23. According to The Wall Street Journal, the commodity set a new record for closing price at $1,897.50 on July 24, but has yet to reach its record intraday high of $1,921 from 2011.
The surge comes just three days after the U.S. government announced a second stimulus bill to counter the economic impact of the COVID-19 pandemic.
â€œIn times of uncertainty, people like having accessibility to gold,â€� said Paolo Ardoino, Tether Chief Technology Officer (CTO). â€œTether Gold is clearly a product that resonates in these times.”
Bitcoin or gold?
However, for gold bugs like Peter Schiff, traders who invest in Bitcoin are not looking for stability. He said that investors arenâ€™t going to â€œget rich on goldâ€� â€” or, consequently, gold-backed stablecoins â€” but they assume less risk in losing more from volatile crypto prices.Â
Today Schiff continued to push the idea that â€œa big dropâ€� in BTC price was inevitable:
Two of the last three times #Bitcoin rose above $10,000 in Oct. of 2019 and in Feb. of 2020 it soon fell by 38% and 63% respectively. The last time Bitcoin rose above $10,000 was in May, and it only fell by 15%. It’s above $10,000 again today. How big will the next drop be?
â€” Peter Schiff (@PeterSchiff) July 27, 2020
Powered by WPeMatico