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Author Topic: What is the impact on bitcoin of tether unpegging from the dollar, if any?  (Read 227 times)
TastyChillySauce00
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January 03, 2025, 03:27:03 AM
 #21

out there, stablecoin is not only USDT, there are several similar stablecoins such as USDC, TUSD, BUSD, and many other stablecoins. so if USDT is depegged from the US dollar, what can be said, that is the risk of stablecoin that it can be depegged at any time. there must be concerns among investors, but it should not have a severe effect on bitcoin, maybe a slight decline in the market, but it should not last long. bitcoin is stronger now and it does not depend on altcoins.
there will be domino effect, some new stables nowadays are trying to mint their own version of stablecoin and peg it to USDT or USDC, if USDT or USDC fails, there will be domino effect that can cause other some defi based stablecoin to depeg as well.
there will be tons and tons of people losing money, UST was smaller than USDT yet the disastrous effect was massive.

the good thing though, so many stablecoin product from delta hedge stablecoin to algorithmic has been populating the market, if people can diversify their stablecoin portfolio they impact will be lower. but can't deny that most of people still put their money in USDT and don't even want to diversify to DAI for example.

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January 04, 2025, 07:11:45 PM
 #22

out there, stablecoin is not only USDT, there are several similar stablecoins such as USDC, TUSD, BUSD, and many other stablecoins. so if USDT is depegged from the US dollar, what can be said, that is the risk of stablecoin that it can be depegged at any time. there must be concerns among investors, but it should not have a severe effect on bitcoin, maybe a slight decline in the market, but it should not last long. bitcoin is stronger now and it does not depend on altcoins.
I think USDT is not algorithmic based like the Tera and others which is the real ones that can depeg. I only heard that USDT is facing some legal issues lately but I think they will resolved it, like what it did on their other issues in the past. If you are one of those who have a USDT, and then it got in trouble, obviously you will complain. But yeah, BTC is also a different breed, that it may hardly get affected by the turmoil caused by this USDT.

Quote
so if USDT is depegged from the US dollar, what can be said, that is the risk of stablecoin that it can be depegged at any time.
I think you are saying that the problem of USDT in case, are going to get shared with the other stablecoins? But no, it doesn't work like that, since each stablecoin company is different from the other.

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