Welcome to your bi-weekly crypto-verse update with Breach.

In this edition:

  • Tether’s stablecoin status has conditions
  • Afghani women are using crypto as an escape routine
  • Bitcoin cross $55,000
  • Brazil is considering Bitcoin adoption
The Movers
Bitcoin (BTC) - $55,275 (-3.71%)
Ethereum (ETH) - $3,462 (-0.76%)
Cardano (ADA) - $2.211 (+0.11%) 
Solana (SOL) - $146.35 (+1.89%)
Binance Coin (BNB) - $448.39 (+10.57%)
Ripple (XRP) - $1.09 (-0.16%)
*Data as of 8:00 AM WAT on 13th, Oct 2021. Via Coinmarketcap
Tether is a stablecoin, but...

Stablecoins are digital currencies pegged to a currency or asset (e.g. USD or gold). Like other cryptocurrencies, stablecoins have grown exponentially over the last two years, but not without controversies


Tether, the largest stablecoin (with $60 billion worth of tokens), has seen its fair share of speculation. The most recent is an article where Bloomberg accuses Tether execs of fraudulently investing asset holders' money in high-risk assets and keeping the returns for themselves.


In response, a Tether spokesperson said Bloomberg's article is "snippets of old news" they've addressed in the past by publishing details of their asset pool.


A Stablecoin is... stable

Stablecoins are also typically less volatile than cryptocurrencies like Bitcoin and Ethereum because they're backed by real asset reserves. When a person buys a stablecoin, there’s usually an equivalent held in reserves (e.g if you hold $1 of a USD-backed stablecoin, there is $1 reserved for you in their account).


Many people use them to:

  • Bypass high transaction fees, as cross-border money transfers are typically faster and cheaper with cryptocurrency
  • People in countries with high inflation rates use stablecoins as a way to hedge against currency devaluation

What's the deal with Tether? Experts believe that the confusion with Tether is the definition of 'backing'. When it launched in 2014, Tether was originally called backed exclusively by the dollar. In 2019, they added cash equivalents (like treasury bills and commercial paper) and returns from loans given by Tether to third parties — now only about 4% of Tether's value is backed by traditional currency.


Despite the changes, Tether still remains very stable. However, analysts believe that stablecoins that are are partly backed by cash equivalents and similar instruments, aren't very liquid and so are riskier than stablecoins ought to be. If you intend to hold stablecoins long-term, single asset-backed options (like USD Coin and Binance USD) might be worth exploring.

Afghani women are using crypto as an escape route

Currently suffering Taliban-powered oppression and a rapidly depreciating currency, Afghan women are turning to crypto as an escape route.


Most women in Afghanistan are not permitted to have bank accounts and as a result, some women-owned businesses pay their employees in Bitcoin. When the Taliban took over in August, many of the women who were paid in Bitcoin used their wallets to transfer their funds to foreign accounts and escape the country.


Afghanistan isn't the first: Though investors and large institutions are credited for driving Bitcoin's mainstream adaption, analysts have observed an increase in use in conflict zones, or in countries with poor governance. Its also popular in countries like India, where poverty rates are high.


Reason? Crypto's decentralisation model. Despite the volatility associated with it, Bitcoin offers a lifeline for people in highly oppressive countries. The fact that there is no central body means that crypto is accessible to anyone, anywhere.

It means governments have little control over how money moves and anyone—activists, immigrants, people looking to save in more stable currencies— can access finances without interference or the need for a bank account.


Bottom line: One of Bitcoin’s core goals is to make financial independence achievable for women and disadvantaged communities, and the development in Afghanistan is evidence of its possibilities. But the crypto-verse is still male-dominated. Digital currencies are still generally thought of as a high-risk asset, which discourages women (generally more risk-averse) from exploring them.


It’s going to take purposeful product design, inclusive content and community effort to take crypto’s mission to the finish line.

Bitcoin hits $55,000+!

If you bought the Bitcoin dip, buy yourself a drink 🥂


Over the last week, benchmark cryptocurrency Bitcoin is currently valued at over $57,000— its highest in over 6 months.


Analysts aren't entirely sure what triggered this rapid high, but global financial services giant JPMorgan says it's due to an influx of investors trying to hedge against inflation. The bank said these are most likely investors who might have chosen gold in the past, but now view Bitcoin as a better bet.

Brazil a step closer to Bitcoin adoption

Brazilians are on the verge of being able to use Bitcoin to make everyday payments. Reports indicate that the largest South American country has moved a ‘Bitcoin’ law through its highest federal congressional body. If passed, this would make Brazil the second country to make Bitcoin currency, after El Salvador. Good times for crypto adoption.

Breach Reads

Here are a few other articles we think you'll enjoy

  • German football player Mesut Özil is launching his own cryptocurrency to further market his clothing line- M10Streetwear (Coingape)
  • The United States FBI and the Israel Police arrested 26 Israelis suspected to be part of a fraudulent cryptocurrency investment scheme mostly targeting US residents (financemagnates)
  • NFTs have managed to find wiggle room out of China's crypto ban. Companies in China are excluding the word “token” when translating “non-fungible token” into Chinese (Ambcrypto)
  • Meet The World’s Richest 29-Year-Old: How Sam Bankman-Fried Made A Record Fortune In The Crypto Frenzy (Forbes)
  • The G7 council consisting of seven industrialized nations is set to issue guiding principles for issuance of Central Bank Digital Currencies (CBDC) (Coingape)
  • International cinema AMC Theatres Begin Accepting meme-inspired Dogecoin for Gift Cards (Decrypt)

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