In an exciting development for the crypto world, Tether, the leading stablecoin issuer, has announced plans to ramp up its Bitcoin reserves. Tether’s strategy involves allocating up to 15% of its realized net operating profits toward purchasing Bitcoin, boosting its already impressive portfolio.
Tether, known for managing the reserves of the popular stablecoin USDT, has revealed that it currently holds approximately $1.5 billion worth of Bitcoin in its reserves. However, Tether is not content with the status quo and has decided to expand its Bitcoin holdings even further.
Through its new investment plan, Tether will regularly allocate up to 15% of its realized net operating profits to purchasing more BTC. It’s a bold move that underscores Tether’s confidence in the strength and potential of Bitcoin as a valuable investment asset.
Paolo Ardoino, the CTO of Tether, shed light on the company’s decision, stating: “The decision to invest in Bitcoin, the world’s first and largest cryptocurrency, is underpinned by its strength and potential as an investment asset. Bitcoin has continually proven its resilience and has emerged as a long-term store of value with substantial growth potential.”
Tether’s strategy focuses on realized profits rather than unrealized capital gains, ensuring they leverage the tangible gains derived from their investing plan. Notably, Tether also takes full control of its Bitcoin custody, bypassing the need for any third-party involvement.
Lightning Labs Turbocharges Asset Minting with Taproot Assets Protocol
In other interesting news for Bitcoin, the crypto community had reason to celebrate as Lightning Labs, the tech wizards behind the Lightning Network infrastructure, unleashed an upgraded version of the Taproot Assets Protocol. This latest innovation tackles the inefficiencies faced by Bitcoin users when it comes to minting new assets on the blockchain.
Lightning Labs pulls no punches, labeling the current asset inscription methods as “particularly inefficient” due to tacky protocols that directly inscribe asset metadata into the block space.
Enter the Taproot Assets Protocol, a game-changer in the world of asset minting. Operating maximally off-chain, this protocol alleviates network congestion, offering a faster and more efficient experience.
Lightning Labs, never one to shy away from calling out inefficiencies, laments the need to “bootstrap a new ecosystem” each time users attempt to integrate BRC-20 assets. With the Taproot Assets Protocol, users can seamlessly integrate BRC-20 assets into the Lightning Network without the need for a complete overhaul.
That said, the brilliance of the protocol lies in its simplicity. The mastermind behind the Taproot Assets Protocol, the enigmatic “Domo,” boldly claims that it’s a “better solution” for minting new assets on Bitcoin compared to outdated methods like JavaScript Object Notation (JSON). The protocol’s flexibility also enables users to effortlessly transfer assets to the Lightning network, facilitating rapid and cost-effective transactions.
How Did These Affect the Price of Bitcoin?
The answer to this question is: Not at all! Despite being exciting news for the Bitcoin community, especially coming a week after gruesome network congestion that triggered a price dump, the news of a lasting solution for Bitcoin’s congestion problems had zero impact on the price of the flagship cryptocurrency.
As of writing, Bitcoin trades at the $27,000 mark, a neutral level for the day and 1.29% lower than it was seven days ago. That said, the general market seems to be showing decent signs of a recovery, which could pull BTC along. The first point target for the cryptocurrency in its recovery is the $28,000 level.
However, Bitcoin bulls need to act fast as expectations for a price dump to $25,000 (at least) ramp up. That said, a return to $29,500 should put BTC in the clear from these predictions for now.
BTC Statistics Data
Current BTC Price: $27,000
BTC Market Cap: $528B
Bitcoin Circulating Supply: 19.3M
BTC Total Supply: 21M
BTC Market Ranking: #1
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