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Reported today that Bitfinex used Tether reserves to mask missing $850 Million which sounds very shady.
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In spite of the neverending hubbub surrounding Tether’s emission and unclear backing, it is these authors’ opinion that the threat it poses is vastly offset by the services it renders. Its solvency appears to no longer be in question, and while the public and the media are right to contemplate the possibility of authorities bringing USDT trading to a halt, they should not dread the aftermath. Certainly, in the short run Bitcoin price would be strongly affected, but there’s no reason why it should terminally spiral down.
It seems to survive every spiral down anyway, i'm not worried  |
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Perhaps this is the way many people say that now the USDT prints like a machine is a digital electronic money. Therefore, BTC infusions are very similar to a bubble. Which inflates and deflates very quickly.
Ideally a more transparent stablecoin can replace Tether and Bitcoin becomes less volatile with time |
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"Fiat-backed stablecoins are therefore rarely actual cryptocurrencies, which causes them to inherit their main characteristics and shortcomings from the centralised banking system. Ultimately, they function in the same manner as fiat, backed by what amounts to an IOU." "There is a theory that stablecoins such as Tether have been used both to stabilise and manipulate Bitcoin’s price, especially during the 2017 Bitcoin bull run." "What is important to remember, is that any asset may appear stable until it suddenly isn’t." Really interesting read by crypto CEO = https://medium.com/@DDhopn/stablecoins-3b93b4f1ddc5If money is not traded, there will be no difference. So, tether is just a stable money to keep the money stable. If you look at its volume, you will find it is not stored much. But what if it's not stable, no one knows if USDT is actually backed 1:1 in real USD as they refuse to undergo a complete audit, if they are running a fractional reserve system exactly like the banking system they are no longer stable in the long-term. |
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I have different point of view i think all these stable and fiat backed coins have done tremendous work for bringing masses to crypto and this has lead to adoption as before all these fiat backed coins general people were confused about crypto and what is their true worth or how to invest but after the launch of especially usdt they can relate and weigh their investments in real world fiat money which has helped in compliance so i see tether as a very positive thing for crypto market.
He mentions exactly that in the article, says stablecoins are necessary for acceptance and adoption of cryptocurrencies, but hopefully over time people will be educated about the benefits of decentralised coins and then move money from centralised digital coins into decentralised cryptocurrencies (which will hopefully be stable by then). I agree with you to an extent, but it's also unhealthy to have a top 10 coin with that higher volume that could be fraudulent. |
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I have heard that theter actually has equivalent of dolars to tether in bank account so I think it is somehow stable. The connection between Tether and BTC price is most likely real.
Tether has never undergone a full audit which I think makes people sceptic. Hopefully they are backed by USD as I think they provide a helpful middle ground between crypto and fiat, but there is still a lot of other factors that make me wary of them. |
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"Fiat-backed stablecoins are therefore rarely actual cryptocurrencies, which causes them to inherit their main characteristics and shortcomings from the centralised banking system. Ultimately, they function in the same manner as fiat, backed by what amounts to an IOU." "There is a theory that stablecoins such as Tether have been used both to stabilise and manipulate Bitcoin’s price, especially during the 2017 Bitcoin bull run." "What is important to remember, is that any asset may appear stable until it suddenly isn’t." Really interesting read by crypto CEO = https://medium.com/@DDhopn/stablecoins-3b93b4f1ddc5 |
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You should pay attention to the which projects are legitimate, most of these ICO's don't have a working product and 95% will fail. Go for the ones that have a good team behind them and have actually produced something tangible. e.g. Plutus are doing a giveaway on their Telegram channel just for joining, they have a strong team and a live beta version of their product (an app that lets you tap & pay with bitcoin at 40million stores worldwide) https://t.me/plutus_group |
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Plutus, very similar to projects like Tenx or Monaco but they are achieving their crypto payments platform using a decentralized exchange rather than a centralized one so its far more secure. Aim is to let users spend at over 40 million+ stores worldwide using a crypto debit card or a tap & pay app. When you go in-store to make a purchase only the amount of crypto needed to make the purchase is exchanged into spendable fiat which then goes to the merchant. Exchange is done via their decentralized exchange. They've got a live beta version of their app with two of the core features available already (buying and selling crypto at zero fees), one of only a handful of projects to actually go from whitepaper to a working product. Should check out there Telegram channel, the team are pretty active on there https://t.me/plutus_group |
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