Tether Market Cap 100 billion today vs less than 5 billion 2020

[uknowy9999]

Hey guys,

I know the tether discussion is not a new one, however I took a look at their recent spike in market cap and saw that
as of today it crossed 100 billion USD market cap vs just under 5 billion just 4 years ago (20x).

I have a substantial amount of BTC myself and I am holding for a few years now, and as I see the USD amount getting bigger and bigger of my stack, I of course, reassess
the potential downside risk, and everytime I can't debunk the tether risk.

Bitcoin itself was around 8k USD beginning of 2020 and until now it did a 8x vs the tether 20x in marketcap.
So how do you guys see these increases of tether and the rise of BTC prises the same time tether increases their market cap.

I would like to have a serious discussion, and not just "ignore the fud",

EDIT: especially the question: how backed up is tether really and how verified are the information they are putting out?

THANKS!

[MusaMohamed]

EDIT: especially the question: how backed up is tether really and how verified are the information they are putting out?

You can check some transparent reports from Tether on their website.
https://tether.to/en/transparency/#usdt

They usually publish quarterly reports from audit companies.
https://tether.to/en/transparency/#reports. On this page, you can see Tether Reserves Breakdown information as well.

The latest report https://assets.ctfassets.net/vyse88cgwfbl/7DZ8nVyr8zTaWhJqTIsMsH/b8e55bc151c9bb74adf20ff840e84088/ESO.03.01_Std_ISAE_3000R_Opinion_31-12-2023_BDO_Tether_CRR_RC134792023BD0684__1_.pdf

[hugeblack]

Unfortunately, USDT is printed faster than the money in escrow, and because this currency is used extensively, it has value, but like the dollar, its value comes from confidence that its price will always be 1 dollar, and if a major problem occurs, there is a good possibility that it will be the main reason for the collapse of the cryptocurrency market for more. From 70% of the value, therefore it is better not to use it as a long-term investment or to have most of your profits in it, but rather for low-value settlements (on Matic L2 blockchain) or buying DAi / USDC, which seems to be in a better position.

[avikz]

USDT is more of a supporting currency to the cryptocurrency market. It is not an investment asset. The main use of USDT is in transactions and cryptocurrency trades. So it's not surprise to see this huge market cap if you compare the overall crypto market cap.

As long as they are audited by an independent auditor, I think how much USDT coins they release in the market, doesn't really matter! The demand is robust and USDT is actually a very useful hedging tool against falling crypto prices.

[Husires]

Surprise how USDT grows and everyone wants to buy more bitcoin, it is not the right time to buy more USDT so he expects during the coming year the USDT market will be up to perhaps up to 300 billion dollars or even half a trillion because whoever will think about re-investing will sell part of its investments and transfer them To USDT instead of converting it to dollars due to the ease of purchasing bitcoin with USDT.
If the USDT price does not crash in 2026, which is the season of corrections, it will continue for another four years.

[jrrsparkles]

Hey guys,

I know the tether discussion is not a new one, however I took a look at their recent spike in market cap and saw that
as of today it crossed 100 billion USD market cap vs just under 5 billion just 4 years ago (20x).

I have a substantial amount of BTC myself and I am holding for a few years now, and as I see the USD amount getting bigger and bigger of my stack, I of course, reassess
the potential downside risk, and everytime I can't debunk the tether risk.

Bitcoin itself was around 8k USD beginning of 2020 and until now it did a 8x vs the tether 20x in marketcap.
So how do you guys see these increases of tether and the rise of BTC prises the same time tether increases their market cap.

I would like to have a serious discussion, and not just "ignore the fud",

EDIT: especially the question: how backed up is tether really and how verified are the information they are putting out?

THANKS!

Bitcoin is not just printed out of nothing where like tether that is the difference and that's why that 8x increase is a lot better thing to be considered than 20x and for the record marketcap value is not a good indicator to value the coin and it doesn't matter even if tether reach 1 trillion still it's something that can't even close to be considered safe.

[Sophokles]

This is the largest stablecoin on the market because of its extensive use in the crypto market. The biggest money inflow has gone through the USDT foundation for this reason. That is why we saw billions of dollars worth of token minting by the USDT team. All this newly minted USDT then goes to the market to be traded with other crypto assets. This seems really simple but it looks like ticking bomb to me because of the size of USDT. If anything bad happens due to regulatory issue or govt crack down it can take down the whole market with it.

[kentrolla]

EDIT: especially the question: how backed up is tether really and how verified are the information they are putting out?

You can check some transparent reports from Tether on their website.
https://tether.to/en/transparency/#usdt

They usually publish quarterly reports from audit companies.
https://tether.to/en/transparency/#reports. On this page, you can see Tether Reserves Breakdown information as well.

The latest report https://assets.ctfassets.net/vyse88cgwfbl/7DZ8nVyr8zTaWhJqTIsMsH/b8e55bc151c9bb74adf20ff840e84088/ESO.03.01_Std_ISAE_3000R_Opinion_31-12-2023_BDO_Tether_CRR_RC134792023BD0684__1_.pdf

I wanna say two things the first one being people use Tether just as an digital Alternative to USD and  that's the only reason people use it to save in crypto domain to avoid risking any market fluctuations. Secondly, there has been issues in the past whether Tether is really holding USD equivalent to the amount of USDT in supply? And these numbers and audits are published by the themselves not by any third party hence it's unreliable and I think it's just a matter of time USDT is a bubble which could be busted.

[Kelward]

Surprise how USDT grows and everyone wants to buy more bitcoin, it is not the right time to buy more USDT so he expects during the coming year the USDT market will be up to perhaps up to 300 billion dollars or even half a trillion because whoever will think about re-investing will sell part of its investments and transfer them To USDT instead of converting it to dollars due to the ease of purchasing bitcoin with USDT.
If the USDT price does not crash in 2026, which is the season of corrections, it will continue for another four years.

The usage of usdt will continue to rise because of it's importance in crypto conversions, instead of holding your Bitcoin during price dips or converting it to fiat, it'll be better if it's in a stablecoin, when price starts to pump again, the investor will easily convert to Bitcoin again, so I agree that after bull run that usdt can reach a new height. Besides in countries where their currencies are devaluing, crypto intelligent people will convert their fiat into a stablecoin like usdt, which will make economic sense, because they'll not be affected by their county's inflation. Usdt has many potentials to keep increasing.

[cryptoaddictchie]

I know the tether discussion is not a new one, however I took a look at their recent spike in market cap and saw that
as of today it crossed 100 billion USD market cap vs just under 5 billion just 4 years ago (20x).

Well its up to you actually since there are a lots of factor but if you are a long time holder then you must have a lot of profits already. Well thats depends on you. The market seems pretty moving fast and you can do is just ride with it or cash it out. If you buy so early then dont you think that this is the time to sell out?

[Mpamaegbu]

From 70% of the value, therefore it is better not to use it as a long-term investment or to have most of your profits in it, but rather for low-value settlements (on Matic L2 blockchain) or buying DAi / USDC, which seems to be in a better position.

If you're proffering those once as reliable replacement, what makes you think they can't fail too? I've seen enough happenstance in this industry to the point where I have come to believe that anything is possible. Apart from  Bitcoin and ETH, every other cryptos had lost their positions on the top count and that goes to show they aren't infallible. I don't want to single out any particular token on this but the truth remains that we can't actually vouch for any with out "full chest".

[TheVeteranAngel]

Hey guys,

I know the tether discussion is not a new one, however I took a look at their recent spike in market cap and saw that
as of today it crossed 100 billion USD market cap vs just under 5 billion just 4 years ago (20x).

I have a substantial amount of BTC myself and I am holding for a few years now, and as I see the USD amount getting bigger and bigger of my stack, I of course, reassess
the potential downside risk, and everytime I can't debunk the tether risk.

Bitcoin itself was around 8k USD beginning of 2020 and until now it did a 8x vs the tether 20x in marketcap.
So how do you guys see these increases of tether and the rise of BTC prises the same time tether increases their market cap.

I would like to have a serious discussion, and not just "ignore the fud",

EDIT: especially the question: how backed up is tether really and how verified are the information they are putting out?

THANKS!

It's incredible seeing this massive figure and surge in price of USDT. Of course you should know that in a mini bull market like this, the demand for USDT is high as more people continue to buy different crypto and they need USDT mostly for their purchases except some who prefer USDC. So i can say there is more to come when the bullrun begins proper after the halving. It's still a good time to take advantage to hodl as demand will increase more and more. For me I dont just stack up USDT, i stake it on some top exchanges like Bitget that offers 16% APR.