The most stable coin" USDT" ,have the possibility of collapse??

[kryptqnick]

The most stable coin ,have the possibility of collapse?

This question Troubled me for long time，Thanks for answer

Yes.

What are the reasons to think so? I saw people writing that tether is not used as much as it seems to be used or something like that, but is not this coin the safest one among cryptocurrencies, since it is regulated and backed up by dollar? I guess this coin can't make one earn profit as well as lose anything. It is just kind of an electronic version of dollar which works like a cryptocurrency. I can understand why people hate it ideologically, but I don't see it possessing any real threat.

[mrcash02]

The most stable coin ,have the possibility of collapse?

This question Troubled me for long time，Thanks for answer

Yes.

What are the reasons to think so? I saw people writing that tether is not used as much as it seems to be used or something like that, but is not this coin the safest one among cryptocurrencies, since it is regulated and backed up by dollar? I guess this coin can't make one earn profit as well as lose anything. It is just kind of an electronic version of dollar which works like a cryptocurrency. I can understand why people hate it ideologically, but I don't see it possessing any real threat.

I didn't understand it too. In what situations could Tether colapses? It's a stable currency, always following Dollar's price, good to move your trading profits into this to avoid fluctuations and losses. Do people here mean there isn't any guarantee Tether will keep following Dollar's price and may fail like a scam or it will colapse only if Dollar colapse as well?

[audaciousbeing]

USDT won't collapse not any time soon just because of its nature. It equals 1 dollar that is the argument we were made to believe but the issue is when bitfinex was hacked and about 30 million USDT was stolen, was the same amount stolen from their bank account? Obviously no and they didn't even feel it be cause they could just create additional 50 million USDT without anybody setting limit for that.

It simply shares the same characteristics with fiat because despite the million of notes that is being shred on a daily basis, they just print more, if the value drops as a result of inflation, they increase minimum wage and simply print more notes which means it won't crash.

they cannot do that. if 30 million USDT is stolen, obviously the attacker immediately traded for another coin and withdrew them hence they now have a $30 million obligation (loss) to their customers.
usdt is not the feds, new money is not printed because the ticker exists

That is exactly what they can do and that is why there is no noise of what went down. 30 million if withdrawn at once is not enough to change the direction of the market. The exchange that was hacked in Japan where over $700 million was taken, there was still no effect on price not to talk of a 30 million USD effect. Another reason is that, the attacker does not hack and leave it on the exchange site, its taken out because if its still on the exchange site, it would have been tracked and found couple with withdrawal of such amount from a single account will need manual processing which of course will need some investigation.

All of the money we have in our banks account are not backed by cash its when you withdraw because someone else is depositing that is when you have cash. Imagine everyone wants to withdraw their money at once, that is when you know that its just numbers we have and not real money and the same thing is going on here.

[kurimiri]

USDT won't collapse not any time soon just because of its nature. It equals 1 dollar that is the argument we were made to believe but the issue is when bitfinex was hacked and about 30 million USDT was stolen, was the same amount stolen from their bank account? Obviously no and they didn't even feel it be cause they could just create additional 50 million USDT without anybody setting limit for that.

It simply shares the same characteristics with fiat because despite the million of notes that is being shred on a daily basis, they just print more, if the value drops as a result of inflation, they increase minimum wage and simply print more notes which means it won't crash.

they cannot do that. if 30 million USDT is stolen, obviously the attacker immediately traded for another coin and withdrew them hence they now have a $30 million obligation (loss) to their customers.
usdt is not the feds, new money is not printed because the ticker exists

That is exactly what they can do and that is why there is no noise of what went down. 30 million if withdrawn at once is not enough to change the direction of the market. The exchange that was hacked in Japan where over $700 million was taken, there was still no effect on price not to talk of a 30 million USD effect. Another reason is that, the attacker does not hack and leave it on the exchange site, its taken out because if its still on the exchange site, it would have been tracked and found couple with withdrawal of such amount from a single account will need manual processing which of course will need some investigation.

All of the money we have in our banks account are not backed by cash its when you withdraw because someone else is depositing that is when you have cash. Imagine everyone wants to withdraw their money at once, that is when you know that its just numbers we have and not real money and the same thing is going on here.

at the end of the day, they are responsible for the $30 million loss it'll simply be taken out of their profit when customer withdraws. They definitely feel the loss. It is an account payable. They might have replenished the tokens, however it will be counted against their income statement as losses in order for their balance sheet to balance.

banks are different, banks are in the business of fractional reserve, exchanges are not. Banks lend out money they don't have in order to maximize their profits and hence why they cannot afford a bank run. Exchanges have easily liquidable assets, if people can't get fiat out in an exchange because they don't have enough in the bank for whatever reason, customers will simply withdraw them in crypto, take them elsewhere and cash out. usdt will still be a safe $1.00.
The reason why I trust large exchanges even if they are my worst enemy is because of the amount of fees they make. $2billion marketcap for USDT is nothing when the top dozen exchanges can cumulatively do almost $10 billion in trades in a single day. In trading fees alone that comes out to tens of millions every single day. unlike mt. gox, There isn't even an incentive for them to runoff.

What I am saying is, your deposit risks (regardless if it's fiat or coins or tokens) is with the exchange, if they don't pay, gets hacked, runaway usdt is no riskier than any other coins.
There are no scenario in which usdt would not be valued at $1.00 since it can always be exchanged for tokens of equivalent value of the site.

Imagine you go to a casino and have $10,000 worth of poker chips (usdt) that can be redeemed for exactly $10,000 USD or $10,000 worth of gold (btc) or silver (ltc).
a robbery occurred and half of the casino's money is gone. They no longer have enough money on hand to cashout everyone in fiat. Do you think your $10,000 worth of poker chips is now worth $5,000?
no, because you can still redeem them for $10,000 worth of gold and take that gold elsewhere to exchange them for cash.
Now let's say, everything is gone. no gold, no silver, no cash, nothing. casino runsaway overnight.  Then it doesn't matter what asset you have deposited there, whether it's poker chip (usdt), gold (btc), silver (ltc).

[rickadone]

The most stable coin ,have the possibility of collapse?

This question Troubled me for long time，Thanks for answer

First you must understand the differences between other coins and USDT. Unlike any other coins, USDT was not designed to have value based on supply and demand. It was created as replica of USD. So it will be having all the times same value which was fixed at one dollars for one coin. So, it seems most stable coin to you until you understand the idea behind this coin.

Like any other coin, USDT also is subject to any collapse. If bitcoin prices will be increasing then you will be needing more USDT to buy one full bitcoin similarly if bitcoin prices are falling then you will be needing less number of USDT to buy one full bitcoin. Hope you can get my point and you will be using USDT for what purpose it is with us.

[kurimiri]

The most stable coin ,have the possibility of collapse?

This question Troubled me for long time，Thanks for answer

First you must understand the differences between other coins and USDT. Unlike any other coins, USDT was not designed to have value based on supply and demand. It was created as replica of USD. So it will be having all the times same value which was fixed at one dollars for one coin. So, it seems most stable coin to you until you understand the idea behind this coin.

Like any other coin, USDT also is subject to any collapse. If bitcoin prices will be increasing then you will be needing more USDT to buy one full bitcoin similarly if bitcoin prices are falling then you will be needing less number of USDT to buy one full bitcoin. Hope you can get my point and you will be using USDT for what purpose it is with us.

usdt is a derivative of usd which has value based on supply and demands. if usd goes into hyperinflation, then ofc usdt goes with it. However I doubt this is the type of collapse they are talking about.

[CodyAlfaridzi]

The most stable coin ,have the possibility of collapse?

This question Troubled me for long time，Thanks for answer

The only reason USDT seems "stable" is because it claims to be backed by real USD with a 1:1 ratio. But is this claim true? There has been numerous doubts about this recently. Their lack of public audit is fueling these rumors. Some say that free printing of Tether money (that's not backed by USD) is pumping the BTC price to this level. They even confessed that their relationship with an auditor ha been "dissolved" https://www.coindesk.com/tether-confirms-relationship-auditor-dissolved/

So until they have better and more transparent audit I would stay away from them. Just make BTC as your base assets.

[GoodLuck2]

Thank your idea! I think so ^^

No one really knows the things which will happen in the coming days. I also think the same and that is because of the reason that all other crypto coins are highly volatile in nature and that their market value changes quite rapidly. In that case, if there is a coin like USDT which is stable in nature, then there are likely chances that it will collapse in near future as people will lose their interest in investing their money into it.

[Oilacris]

Thank your idea! I think so ^^

No one really knows the things which will happen in the coming days. I also think the same and that is because of the reason that all other crypto coins are highly volatile in nature and that their market value changes quite rapidly. In that case, if there is a coin like USDT which is stable in nature, then there are likely chances that it will collapse in near future as people will lose their interest in investing their money into it.

This is not directly preferring into supply and demand since we do all know usdt do have equal ratio with 1 usd which means it is already have a fixed value and talking about demand isnt really applicable to this coin.The possibility of collapse on here would be directly on the inflation of usd. If anything goes wrong with it then it would normally happen on usdt too.

[kurimiri]

The most stable coin ,have the possibility of collapse?

This question Troubled me for long time，Thanks for answer

The only reason USDT seems "stable" is because it claims to be backed by real USD with a 1:1 ratio. But is this claim true? There has been numerous doubts about this recently. Their lack of public audit is fueling these rumors. Some say that free printing of Tether money (that's not backed by USD) is pumping the BTC price to this level. They even confessed that their relationship with an auditor ha been "dissolved" https://www.coindesk.com/tether-confirms-relationship-auditor-dissolved/

So until they have better and more transparent audit I would stay away from them. Just make BTC as your base assets.

in what scenerio would that make sense? if you believe btc is going up in value, ofc you would park in btc/crypto. usdt is for the times you would like to stay on the sideline. They are equally as risky when you store them on an exchange.
they are like casino tokens which has no value on it's own. but if you can redeem it for not just cash, but also gold and silver, then it doesn't matter how much cash the casino has on hand. If they don't have the cash, you would simply trade them in for
gold and silver and cash them out elsewhere. usdt is not any riskier than any currency. If the exchange goes under or everything stolen, you are not getting paid regardless of what you have stored there.

[oegarod]

This time USDT has led to the collapse in the price of bitcoin. On the subpoena from the USDT the reserve of usd has termed to be an issue. This has made price of bitcoin go low to $10000. Even now it is speculated and believed that price will increase by the starting of the falling month.

[kurimiri]

This time USDT has led to the collapse in the price of bitcoin. On the subpoena from the USDT the reserve of usd has termed to be an issue. This has made price of bitcoin go low to $10000. Even now it is speculated and believed that price will increase by the starting of the falling month.

btc to usdt ratio is going down more.
usdt is now even more valuation relative to btc.
still, usdt has not changed in value.

[South Park]

The most stable coin ,have the possibility of collapse?

This question Troubled me for long time，Thanks for answer

Yes.

What are the reasons to think so? I saw people writing that tether is not used as much as it seems to be used or something like that, but is not this coin the safest one among cryptocurrencies, since it is regulated and backed up by dollar? I guess this coin can't make one earn profit as well as lose anything. It is just kind of an electronic version of dollar which works like a cryptocurrency. I can understand why people hate it ideologically, but I don't see it possessing any real threat.

I didn't understand it too. In what situations could Tether colapses? It's a stable currency, always following Dollar's price, good to move your trading profits into this to avoid fluctuations and losses. Do people here mean there isn't any guarantee Tether will keep following Dollar's price and may fail like a scam or it will colapse only if Dollar colapse as well?

The most common fear is not that tether is going to fall if the dollar falls, the fear is tether will be just one more scam, think about it this way, almost any coin which have assured us it was backed by something turned out to be a scam, not only that, how many business claim to have a set of assets only to become a scam and defraud their investors? This is why people do not trust in tether.

[Cobalt9317]

I stay away from USDT for a while to avoid such investment lose, but I think it will not collapse that easy other ppl will still invest in USDT and use it as a trading pair it will not collapse the foundation it will only give an assurance that USDT is a stronger altcoin.

P.S But I stay away from it, it is better safe than sorry or prevention is better than cure.

[guoyu78]

USDT won't collapse not any time soon just because of its nature. It equals 1 dollar that is the argument we were made to believe but the issue is when bitfinex was hacked and about 30 million USDT was stolen, was the same amount stolen from their bank account? Obviously no and they didn't even feel it be cause they could just create additional 50 million USDT without anybody setting limit for that.

It simply shares the same characteristics with fiat because despite the million of notes that is being shred on a daily basis, they just print more, if the value drops as a result of inflation, they increase minimum wage and simply print more notes which means it won't crash.

they cannot do that. if 30 million USDT is stolen, obviously the attacker immediately traded for another coin and withdrew them hence they now have a $30 million obligation (loss) to their customers.
usdt is not the feds, new money is not printed because the ticker exists

That is exactly what they can do and that is why there is no noise of what went down. 30 million if withdrawn at once is not enough to change the direction of the market. The exchange that was hacked in Japan where over $700 million was taken, there was still no effect on price not to talk of a 30 million USD effect. Another reason is that, the attacker does not hack and leave it on the exchange site, its taken out because if its still on the exchange site, it would have been tracked and found couple with withdrawal of such amount from a single account will need manual processing which of course will need some investigation.

All of the money we have in our banks account are not backed by cash its when you withdraw because someone else is depositing that is when you have cash. Imagine everyone wants to withdraw their money at once, that is when you know that its just numbers we have and not real money and the same thing is going on here.

at the end of the day, they are responsible for the $30 million loss it'll simply be taken out of their profit when customer withdraws. They definitely feel the loss. It is an account payable. They might have replenished the tokens, however it will be counted against their income statement as losses in order for their balance sheet to balance.

banks are different, banks are in the business of fractional reserve, exchanges are not. Banks lend out money they don't have in order to maximize their profits and hence why they cannot afford a bank run. Exchanges have easily liquidable assets, if people can't get fiat out in an exchange because they don't have enough in the bank for whatever reason, customers will simply withdraw them in crypto, take them elsewhere and cash out. usdt will still be a safe $1.00.
The reason why I trust large exchanges even if they are my worst enemy is because of the amount of fees they make. $2billion marketcap for USDT is nothing when the top dozen exchanges can cumulatively do almost $10 billion in trades in a single day. In trading fees alone that comes out to tens of millions every single day. unlike mt. gox, There isn't even an incentive for them to runoff.

What I am saying is, your deposit risks (regardless if it's fiat or coins or tokens) is with the exchange, if they don't pay, gets hacked, runaway usdt is no riskier than any other coins.
There are no scenario in which usdt would not be valued at $1.00 since it can always be exchanged for tokens of equivalent value of the site.

Imagine you go to a casino and have $10,000 worth of poker chips (usdt) that can be redeemed for exactly $10,000 USD or $10,000 worth of gold (btc) or silver (ltc).
a robbery occurred and half of the casino's money is gone. They no longer have enough money on hand to cashout everyone in fiat. Do you think your $10,000 worth of poker chips is now worth $5,000?
no, because you can still redeem them for $10,000 worth of gold and take that gold elsewhere to exchange them for cash.
Now let's say, everything is gone. no gold, no silver, no cash, nothing. casino runsaway overnight.  Then it doesn't matter what asset you have deposited there, whether it's poker chip (usdt), gold (btc), silver (ltc).

There is no way that we can treat the banks and the crypto market in a similar manner. Both of them are entirely different and they have hardly anything common in between them.

On the other hand, it is very much possible for USDT to lose its fame and popularity soon its market value gets stable as investors only invest in that coin which can later on help them in having more profit instead of getting nothing good.

[canaveralnonie]

The most stable coin ,have the possibility of collapse?

This question Troubled me for long time，Thanks for answer

Even your own local money have a possibility to collapse or go down. This is about " the only constant in this world is changes", back when I was in secondary level. How about more in crypto currency, expect more than the usual, sounds like " expecting the unexpected". But, don't worry too much, if you are not comfortable, go find other profitable token as well. Just choose coins that has a good foundation ( for example, a project that has a multiple famous company partners ).

[ngavanngo22]

The most stable coin ,have the possibility of collapse?

This question Troubled me for long time，Thanks for answer

USDT is currently experiencing a scandal, and its future will collapse. Investors will now invest in BTC, ETH as well as cryptos in the top 10. The USDT collapse is also understandable because of the stability of the cryptos, while the remaining cryptos are falling unstable, USDT only fluctuates at the rate of $ 1.

[kurimiri]

The most stable coin ,have the possibility of collapse?

This question Troubled me for long time，Thanks for answer

USDT is currently experiencing a scandal, and its future will collapse. Investors will now invest in BTC, ETH as well as cryptos in the top 10. The USDT collapse is also understandable because of the stability of the cryptos, while the remaining cryptos are falling unstable, USDT only fluctuates at the rate of $ 1.

usdt is not an investment vehicle. you don't "invest" in usdt. it's impossible for usdt to collapse unless the exchanges (or usd itself) collapses in which usdt is no more riskier than any other coins.
even if the so called scandal is true, and there isn't actually a single dollar in the bank, the value of usdt to usd will remain unaffected.

[BitHodler]

usdt is not an investment vehicle. you don't "invest" in usdt. it's impossible for usdt to collapse unless the exchanges (or usd itself) collapses in which usdt is no more riskier than any other coins.
even if the so called scandal is true, and there isn't actually a single dollar in the bank, the value of usdt to usd will remain unaffected.

You are wrong on that. USDT is nothing more than a shitcoin in reality. Its value should at all times remain equal to that of the USD, but the initial goal has turned out to be a worthless promise of Tether itself.

The value of USDT has climbed above and taken a dive below $1 numerous times already. USDT is tradable against USD as well, which makes it an investment as well, but one that doesn't yield much.

Tether is a pest that should be exterminated as soon as possible, and the fact that they are directly linked with Bitfinex should raise even more suspicion. People will realize what can go wrong when it actually goes wrong.

[BettingTips]

Of course nothing is forever and USDT is the same . USDT will collapse very soon IMO. At the moment, Both Bitfinex and USDT are having big trouble with US government, maybe it'll make the value of USDT dump really quickly and you guy won't never thinking that USDT is the most stable coin anymore .