Bitcoin and Tether
A new study by researcher Wang Chun Wei of the University of Queensland Business School finds that the controversial cryptocurrency Tether has no impact on the price of Bitcoin.
“We find no empirical evidence supporting the notion that Tether grants cause subsequent Bitcoin returns to rise on a daily basis. In fact, when we examine the Bitcoin return equation of our VAR model, none of the lagged variables, impacts Bitcoin returns. This suggest Bitcoin returns are showing greater signs of market efficiency than previously studied on older datasets.”
Tether is a so-called stablecoin designed to constantly maintain its value of approximately $1.00 despite the volatile swings of the market. But skeptics have long questioned the company’s claims that each coin is backed 1:1 by the US dollar and have accused the company of issuing increasing amounts of Tether in an effort to drive up the price of Bitcoin.