Cryptocurrency collapse: Economists panic over Tether - could be 'Black Swan' of industry
There has been a number of worrying claims from senior economists who believe that a loss of confidence in Tether could be crypto’s “Black Swan”. This refers to an unpredictable event that could severely impact the market. Nascent cryptocurrencies may also be impacted, with some economists fearing that markets beyond digital currencies might suffer from consequences too.
Tether is very similar to Bitcoin in that they both fall into the category of cryptocurrencies. However, there is one huge difference.
Tether, as well as being a cryptocurrency, is a stablecoin.
Stablecoins, unlike Bitcoin, are tied to real-world assets, to maintain a stable value.
An example of a real-world asset is the US dollar.
