Bitcoin Forum

Finally - send Euro on the bitcoin blockchain.  Transferwise is a multibillion startup to do the same thing you can now do for free!

https://cointelegraph.com/news/tether-and-its-partners-to-disrupt-conventional-trading-on-bitcoin-blockchain (https://cointelegraph.com/news/tether-and-its-partners-to-disrupt-conventional-trading-on-bitcoin-blockchain)

And appearing a USD digital coin and EURO digital coin. and the real currency is represented by the digital currency. But I think this can become a threaten for bitcoin later.

Nope, it's all done on top of Bitcoin.  If Bitcoin goes away, then Tether is gone too.  Doesn't threaten Bitcoin at all.  IT IS BITCOIN!!!!

tether is owned partly by bitfinex isn't it? and the bfx shitcoin was created on Omni. I don't find that type of background a big turn on.

honestly, this completely confuses me, what is the difference between this new eurocoin and another new bitcoin token?  if there is a balance in your wallet you still cannot hit a standard ATM and get real Euros.  It is just another Bitcoin colored/token right?

No! We want USD/BTC and EUR/BTC...


This doesn't sound good at all.

It looks like this will complicate things instead of simplifying them, I think... You will need an extra token to trade another token, so to speak.

i actually imagined a placeholder token once that would be untouched by the public, but to represent a group of alt coins, it could be used behind the scenes on a site to put together "hedge funds" of multiple coins, i guess that is the type of thing that would be needed here to give a controllable mutable value, but a standard alt coin could be entirely controlled by a dev, while another person could get control of a unannounced token on the blockchain, i do not fully understand the protocol of tokens and how transparent those TX's are from viewing the Bitcoin blockchain, i would have to tinker and see

Trade whatever you like.  It goes in all directions.  Any pair you want in/out of, bam! Omni does that.  

The big deal is that everyday a shitload of $$$ want to go to Europe and a shitload of EUR want to go to the US.  All that traffic is now done on conventional channels.  Bitcoin can carry this traffic very easy and can do it today without modification.  Further, the cost is just over .05% whereas with Transferwise (cheapest way) it is still over 1%!!!  $ Millions in savings each day.  No exaggeration about that.

It is only complicated to slow thinkers.  But, since it will save you tons of money, even slow thinkers will use it.

well, the issue i always had with any sidechain in understanding was the representation of the hard assets.  i went fully through creating a colored coin the long way and there is never any point where a true link is made between the "promise" of redemption and a vehicle that can be proven.  the basics are simply attaching side data to the blockchain to send along additional info and the promise is that one party will redeem these coins for an asset of true value.  what i cannot understand is the mechanism of proof.  i can create another alt coin and tell everyone that if they come to my office i will give them $1 worth of services for each of the alt coins they have.  i can encode this data into the TX of each coin, but that promise is only as good as the action taken to make it happen.

i can understand if a colored coin transaction contained the private key to a BTC wallet or perhaps a digital key to open a FIAT bank account, but those can both be emptied easily.  i simply do not see how the attached meta data can ENSURE that the receiver and only the receiver can directly access funds/assets permanently held until redemption, the blockchain displays the meta data for everyone

It can't.  Not any more than having bitcoin on the blockchain can assure that somebody will give you $600 for it.  But, people still give $600 for a bitcoin.  Similarly, people still gives one real hard USD for a tether.  Everyday.  Every time.

see then other than using yet another protocol/handling procedure for Crypto I do not understand the purpose of these tokens and/or colored coins.  I understand developing the initial prototype as a proof of concept, but going beyond that just seems silly.  i would rather see the scripting within Bitcoin used for something more interesting or useful.  i can see a software wallet on a mobile device combined with sidechain data only allowing a client access to the balance at specific locations or giving bonus coins at certain places or even using blockchain scripting in more games that use Bitcoin or an altcoin.

The only one way that i can see using this to ensure redemption is to provide one part of a key pair in the meta data and another part through another method, i still think that leave the receiver open to losing the funds to the sender, but at least that is the only weakness

It doesn't matter whether or not you can 'see using'.  Today $ 2,243,960 changed hands on Tether.  Daily average is over a million.  Loads of people find it very useful to trade USD on the blockchain.  After more learn how this works, volume is going WAY up.

If you have no need whatever to trade crypto-USD for crypto, no problem go buy Omni and you will be paid .05% for all that volume.  At today's Omni prices that is over 6% annual return.  If volume goes up, you win big.  No other crypto today is paying dividends like that.  Not even close.  All those depend on a prayer and a hope.  Omni is paying dividends NOW!

ok, i have not touched them much but will check them out, i appreciate the info, i have traded and invested for a while now and while see these have to offer, thanks again

this is interesting for sure but i am having a little bit of trouble for trusting tether and similar coins that are the same value as a fiat (USDT = $1) and the way they work.

for example tether price has always been $1 for a very long time but when bitfinex was hacked the price went down to ~$0.9 for the first time and it makes me a little bit worried.

Translated into Chinese and released:
http://www.8btc.com/blockchain-based-omni-foundation-adds-euro-coin-pair

Correct me if I am wrong, but Tether is somehow pegged to the fiat currencies and then linked to fiat bank accounts. What happens with the funds in these accounts, when the banks block these accounts? Is this not centralization based on the Blockchain to transfer fiat value?

Give the slow thinkers a boost here. ^smile^

But there are possibilities for that is will become disrupt the crypto exchange? Thank for your explanation about that but i doubt about it because this is my first time heard about Token currency.

For some reason here at my office and even through my mobile phone here the Tether website is really slow when trying to register.  You actually have me curious now and I want to rty it but I will see what happens from my house.  There are no internet issues here, all good and fast, but their site is having issues, hopefully later.

Yep.  It is centralized.  That is a horrible, evil thing.  But we have to live with some centralization.  A bank (awful four letter word) does hold the funds and can impound the account.  All true.  For those who need a 100% bank free world, tether is not suitable.  

Now, for all the others, it is a very handy system that enables USD/EUR exchange and transfer all over the world for free!  Presently, people are paying very large sums for the same thing.  If you can get over the fact that Tether is not decentralized, then you can take good advantage.  Those seeking 100% decentralization in their lives will be left dissatisfied.

You don't need to visit the tether website.  Just open an account on Poloniex and get your tether there.  I don't think anyone goes to the tether site.

This is not just another bitcoin colored token as they have stated EURt available are backed by same number of EURO in taiwan bank account so value of EURt will be stable just like their USDt which is being used by few bitcoin/altcoin exchanger already. And tether have already won trust for few years now, however if any complication arises with their bank account than it may create problems. Hope they have not deposited all backing funds in a single bank account.

It's actually not a terrible idea in my opinion. Even though you now have more tokens connected to the blockchain, having a 1:1 token quantity makes it easy to see how many Euros are being moved.

As long as the idea isn't being complicated beyond the base concept it has right now, it should actually be a pretty decent system.

yeah, i agree with you but i think if you want to move money that's the best way and less dependent of banks, even tho there's still some dependency.

I think the first thing wrong with the statement Kakmakr is that he implied that the banks would just go and block the accounts outright. The funds in the accounts wouldn't really matter, and assuming you have a bank/trust that is the very center of the program, they won't just block the account. Even if they do it doesn't matter, because the tokens exist. Those who deposited Euros sell their tokens for Euros to someone else, they get their money. If you could comprehend written words you would be able to figure out how it works. It is centralization, but everything you state and assume is basically wrong in the context of what you wrote.

Why would a bank block their own deposit account? You send money, get tokens in return that can be traded. What can they block?

This sounds absolutely fantastic and is the way of the future..  ;)

Ok, so how about if a given Bank becomes insolvent before you trade your EURt for "mainchain" (lol) EUR? I know, you'd change your mind and trade the EURt for BTC blazing fast, but it's worth thinking of all scenarios if you're going to start talking "what if"s.

One thing I've often thought about with the Tethercoins: what if websites began to accept them for payment? Being able to use USD or EUR online in a cash-like (permissionless) way would be genuinely useful, all the more so if the Tethercoin isn't as subject to the monetary policy of the issuing fiat-bank as the asset it's based on. EURt might be consistently worth more than actual EUR under those circumstances... you could forget about bank runs and PayPal forever.

Here is the really bizzare part: the dependency is PURELY psychological!!!  

It's not the actual money held by the bank that backs up Tether - rather it is the belief and faith that when you give one USDT to someone, they will hand you a buck.  Every time.  Every day.  Never changes.  If everyone just kept using Tether normally, everyone just kept believing the next guy would give a buck in exchange for a Tether$, then it wouldn't matter if the bank caught on fire and all the backing money was gone.  It 'feels' good that the backing money exists.  But really, the only thing that makes Tether$ worth something is if all people are willing to exchange it for a buck, or a buck worth of something else.  

If everyone showed up on the same day and wanted to give back their Tethers and receive greenbacks (a bank run) the system would crash without backing funds.  With backing funds, even a bank run won't damage Tether.  Backing funds are only important in the event that a bank run comes.  But what are the odds of a bank run?  We could all use Tether for 1000 years with no bank run and no backing money - and EVERYTHING would be fine!!!  This is in fact how the Fed actually works.  Yet you are perfectly happy that Bank of America shows your account balance of $1000 - $1000 which doesn't really exist and there are no 'backing' funds.  Indeed, the funds on deposit that back Tether are just imaginary bullshit government notes not worth anything at all!!!

Tether will save so many millions in exchange fees.  Go see what Transferwise did.  It is a HUGE valuable company.  Tether does it even better.  The future is bright for Tether.

Who really needs this thing? Anybody that is able to use EURt is also able (and even more inclined) to use Bitcoin. EURt is like offering a transportation service where passengers sit in horse buggies that are loaded on pickup trucks. That makes no sense at all.

Omni Layer is in fact the rebranded MasterCoin protocol. The founder of MasterCoin, who contributed no real work to the actual protocol other than an amateurish whitepaper made a nice cut by dumping his coins after generating a hype around it - even before an usable implementation of the protocol was available. Now he has effectively disappeared.

ya.ya.yo!

Imbecile.

What if you want exchange rate protection?  When Bitcoin falls 20% in one day, USDT falls 0%.  There are 101 more uses.  That is who needs this thing.  

JR didn't disappear, didn't hype, and didn't profit.  You have no idea what you are talking about.  Management of Omni was not ideal in the beginning for sure.  But, the coders continued to build a really nice strong platform.  

Many good alts are built and traded on Omni today.  

But forget about Omni, this is about Tether.  TetherUSD has done really well over the last two years, now trade over $1,000,000/ day.  If Tether Euro gets up and running, it allows a very new EUR/USD channel directly on the blockchain.  Unless you are a financial null, you'd know right away why this is extremely valuable.  That is a shitload of traffic done every hour.  If you can do it without fees, there is real benefit.  Tether will be HUGE in less than 12 months.

Go back to playing with your 'crypto-games'. This is something even morons can understand.

The use-case for me is decentralised exchanges. Bitsquare.io handles at least some of the Tether coins, and I believe also a different scheme for price-static surrogate coins. The reason should be obvious: it's not possible to store (and therefore trade) fiat directly when using decentralised exchanges.

I have been tempted to use tUSD before to hedge against possible BTC price dips so I can buy back and own more BTC, the problem is keeping the tUSD in the exchange wihle you hold positions... this is why we need proper decentralized exchanges, so we can hold positions without risk of getting Goxxfinexed.

Bitquare has some Tether coins (plus another Tether-like set of coins, I believe). The only thing I don't like about Bitsquare is the use of SPV wallets in the BTC part, but there are ways of mitigating that problem (i.e. the reduced privacy of using SPV).

Don't hold your Tether in an exchange - you'll get Goxxifinexed.  Just put your Tether on a paper wallet.  3 minutes before you need to trade, send them back to the exchange account. 

Tethers live happily on any normal bitcoin address!!!

it would be great to be honest, though i dont think that it is going to be possible soon, in my opinion we are still to early for it

The future is NOW.  It is already working.  Believe it or not.

yeah, in my opinion using banks is a really bad decision, well we have to do it all the time though i try to avoid them as much as possible

This guy is straight up advocating for a Federal Reserve system where value is backed by "faith" - undermining this entire industry and what it originally was meant to over take?

How is nobody calling him out on his bullshit?

https://etherscan.io/token/0xabdf147870235fcfc34153828c769a70b3fae01f

Since January 1st - EURT has been pumped to $86 million.

http://archive.is/Rk9q4

You can also NOT exchange USDTether to USD for any US citizen - EXTREMELY suspicious, this was done only after they were subpoenaed.