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They don't have anywhere near as many treasuries as Japan. They are only a big buyer right now because there's a huge run-up in crypto.
Gurbacs commented that if Tether was a country, it would have been the top 30 holders of the Treasuries.
Also, Tether isn't a cryptocurrency. It's a pile of fiat currency represented by tokens on different cryptocurrencies. It's used to trade crypto on exchanges. They have hundreds of billions, so they park it in treasury notes.
Tether isn't a cryptocurrency
Then
a pile of fiat currency represented by tokens on different cryptocurrencies.
If one is true then the other would have to be true yet you have represented the arguments as the inverse of eachother.
They are only a big buyer right now because there's a huge run-up in crypto.
Which came first?
They don't have anywhere near as many treasuries as Japan.
Japan has been around much longer than Tether. No? Does this negate my point? No.
Tether is Tether Limited, which is incorporated in Hong Kong and operates under the umbrella of iFinex Inc. It's literally a company.
They have a shit-load of US dollars. What they do is create "tokens" on Ethereum, Tron, and other cryptocurrencies to represent US Dollars. Again, Tether is not a cryptocurrency. It's a company that uses cryptocurrencies to create vouchers for US dollars that can be moved around the world on the back of other cryptocurrencies as tokens.
When someone wants to convert 100,000,000 to Tether, they wire 100,000,000 to Tether Limited. Tether Limited then "mints" 100,000,000 USDT on a cryptocurrency blockchain like Ethereum or Tron. The person then receives 100,000,000 Tron or Ethereum USDT tokens that they can send to crypto exchanges. They'll then trade the Tether for Bitcoin or other cryptocurrencies.
What does Tether Limited do with the 100,000,000 in cash? They buy US Treasuries and get their interest on it. That's how they make money.
So without Tether. What would the price of bitcon be? Lower or higher? Cryptos in general, lower or higher?
Tether isn't a cryptocurrency
Then
a pile of fiat currency represented by tokens on different cryptocurrencies.
If one is true then the other would have to be true yet you have represented the arguments as the inverse of eachother.
When I started researching crypto I was confused too. The terminology is somewhat stupid and adds to the confusion.
Strictly speaking, a cryptocurrency is just the blockchain + group of computers running a program that maintain that block chain. There are DOZENS of block chains around such as Bitcoin and Ethereum. USDT is not a blockchain. Most of the block chains provide a way for users to submit transactions that are entire _scripts_, not just a one-shot description of value moving from one wallet to another. On those capable blockchains a standard script emerged that people reviewed, and now trust and use everywhere, and it defines a "token" as easily as it defines a variable that is set to some value (wallet 'x' has value 'y'). There are THOUSANDS of tokens and USDT is one of them.
Creating USDT out of thin air, "minting", just requires someone at Tether to submit a transaction containing a script that calls a function, one that increments the value of a variable. The machines running the blockchain actually execute the function and append the transaction to the blockchain. Destroying USDT back to ashes, "burning", follows the same approach but calling a different function, one that decrements the value. Technically Tether could mint/burn whatever it wanted, whenever it wanted, but this would erode everyone's trust in the token's value. They invite auditors over to their office often, to see that the number of tokens minted equal the number of dollars (cash or invested in TBills) that they possess. Other token authors have their own policy for minting/burning their tokens.
The underlying blockchain (such as Ethereum) still defines its own currency value (ETH) in each wallet, it just has nothing to do with "tokens". Moving this value from wallet to wallet just requires the wallet owner to submit a transaction describing the movement of that value to another wallet. Minting or burning this value is very different from minting/burning tokens, as it's done by and for the machines that maintain the blockchain (the miners), according to a well known schedule.
My perspective is not formed from ignorance of the subject. Your ignorance on the importance of tether being the largest buyer of US debt is where the focus for you should be.