There is much debate about Tether’s Market Cap, but it appears that it will exceed that of Ethereums. This is an interesting situation and I am interested to learn more about the reasons for its growth or decline. I will focus on the financial reporting methodology in the case of Tether as it does not apply to other companies in the same industry.
As I previously stated, the company itself is very small, but it has raised a significant amount of capital through a Series B funding round from well-known investors in the technology sector including angel investors and venture capitalists. However, the actual company does not do much of anything apart from issuing a currency pair against the US Dollar to customers who sign up with them as affiliates.
The business model for Tether is extremely attractive, particularly compared to Ethereums which has been in existence for a few years now and already has a fairly robust market presence. Ethereums relies on the use of a service such as PayPal or some other third party payment processor to take credit card payments and this is a very inefficient way to do things. The fees associated with this are relatively high and even the fees associated with Ethereums’ own merchant accounts are too high for most small businesses.
On top of this, the market cap for Tether is much larger than that of Ethereums, which makes sense because it does have much more money under management. What this means is that even though it is small by comparison to Ethereums, it can also have a greater impact on the market as a whole. It is important to note that this only applies if the fees associated with their service are lower than those of their competitors, which they are not currently.
In conclusion, there are a number of factors that could result in a higher market cap for Tether than that of Ethereums next year. If the fees associated with its service are lower, it could end up as the leader in terms of market share, but this is unlikely, especially when it has yet to get any of its services rolling out.
Given all of this information, it seems possible that a future analysis of Tether could overtake Ethereums as the leader of the market. I am eager to see this trend continue and will be looking for more information to help me make my final decisions about Tether and whether it is a good company to follow in the future.