What Tether is

A pro-bitcoin exchange would encourage diversity and depth of the markets. Exchanges with no other fiat based protection would welcome and appreciate a Tether. Although in competition with each the pro-bitcoin exchanges would certainly cooperate to the extent that the stability of the market they create allows bitcoin and cryptocurrency to continue to become more relevant in the real world.

This is not unlike a suggestion that a well function Cryptoexchangia would increase the production of the realm.

An unbacked or dishonest Tether does not facility this end and so there is not the same incentive for a pro-bitcoin issuer to inflate the supply (or to corrupt the USD reserves). Tether exists for a different reason than money that we use such as USD. Tether plays a special role in Cryptoexchangia and it can’t play that role if the issuer is dishonest about the reserves that back it.

The (Hidden) Cryptoexchangea Proxy War

What is needed is a decentralized “realm” of exchanges that are locked in self interested equilibrium such that no one exchange can spoof the bitcoin price without the other exchange’s prices perfectly exposing the distortion. In this sense we can see bitcoin as a sort of raw ray of signal that requires a very apolitical lens with which to translate the information with.

This lens is what Cryptoexchangea will become PROVIDED the construction of it remains true to the intention of keeping the price signal honest.

Those that believe in bitcoin’s ability to ultimately serve our financial system by fostering a competitive free market for banking in the real world (thereby putting pressure on legacy banks to print higher quality money ie non-inflationary) would seek to foster a competitive decentralized Cryptoexchangea.

Those that are seeking to stop bitcoin from becoming the great basis for value would mean to distort the lens that translates the market valuation of it. Such nefarious actors would act against the decentralization of Cryptoexchangea rather than trying to contribute to it.

Who is Calling for Regulation of Cryptoexchangea?

What is significant about this point is that if other USDT existed on the markets then there wouldn’t necessary be needed the tokens issued by Tether today. If competition arose these would serve the same purpose to all the exchanges that truly intend to be honest about bitcoin’s price discovery. And of course there could be many different fiat tethers that provide honest 1 to 1 digital fiat tokens.

From this sense we could see the usefulness of government sponsored digital fiat tokens which are then themselves free from the danger of government intervention (why would the government arrest themselves). Indeed many governments are preparing such programs and we can probably expect many government sponsored crypto fiat tokens to arise very soon.

The Knights of Cryptoexchangea

This phenomenon of knights is simply a product of the relationship between exchanges need for market liquidity security and the knight’s (traders) profiting from the benefits of Tether and a deeper more decentralized Cryptoexchangea that Tether has helped foster.

These knights have a solemn duty towards their specific “castle” but they each swear oath (recognize) that they must also tend towards the existence of a free market Cryptoexchangea otherwise their specific castle couldn’t exist anyways.

An Optimal Basket of Reliably Tethered Fiat Tokens

It might seem counter-intuitive to bitcoin’s ethos but it seems that governments are best suited to administer tethered fiat and if there was incentive for governments to do this (ie pressure by the game theory and/or the citizenry) then there might exist many tethered fiat currencies.

This would make creating a digital basket of all major currencies quite “programmable” which may be an unexpected result and observation than anyone previously considered. This new digital coin that could rely on the guardians of tether and the supplies of each digital fiat (remember there isn’t the same incentive to over or undersupply tether to Cryptoexchangelandea because it functions on a free market basis), would serve as a far more ideal standard or unit of account than is available today.