Bitcoin and Tether?

[Gravel Coin (GRV)]

The issue behind Tether is that as more people transfer holdings to USDT, Tether has to “print” or create more tokens and put them in circulation. As long as the company has the fiat assets to back that up, there’s no cause for concern. And obviously, they have those assets, right?

Yeah – about that. While Tether certainly claim to have almost $3 billion USD required to back up USDT, the lack of transparency on that claim is a major cause for concern. Tether recently dissolved the relationship between them and their third party auditor, and have stated that they can’t reveal their account balance due to issues with the US government. Unfortunately I can't trust 100% on that.

[Yakamoto]

The issue behind Tether is that as more people transfer holdings to USDT, Tether has to “print” or create more tokens and put them in circulation. As long as the company has the fiat assets to back that up, there’s no cause for concern. And obviously, they have those assets, right?

Yeah – about that. While Tether certainly claim to have almost $3 billion USD required to back up USDT, the lack of transparency on that claim is a major cause for concern. Tether recently dissolved the relationship between them and their third party auditor, and have stated that they can’t reveal their account balance due to issues with the US government. Unfortunately I can't trust 100% on that.

USDT is likely backed almost completely, scams are something that is all-too-frequent within the crypto community, but I don't think that anyone would be able to cover up $3B disappearing, or a company not maintaining the $3B required to back the currency. Now it is concerning that Bitfinex was using their USDT to cover up a bunch of lost crypto value, and that might have an impact on the trust that's still in USDT. Hopefully, they can find another auditor so that everyone can retain their confidence and we won't have to go through another coin collapsing.

USDT is ingenious in one way while also being extremely concerning considering the conditions of its existence. There's no real way to decentralize a backed currency, and that's the only major pitfall I can see with USDT. Time will tell if we're going to be scammed once again or if they'll pull through. Currently, it looks like it'll be the latter, at least for now.

[rachellee]

It's not improbable that Tether will go as low as OP said. It could even go lower. Even bitcoin, to think that it's the crypto king, experiences such massive dump. And even Forex, fiats experience extreme highs and lows. Remember that Tether is backed by fiat, so almost-no-value dump is also possible with Tether. Well, there's truly no certainty in this crypto sphere. So better exercise extra caution when trading.  

[CryptoBry]

Do you Tether is stable forever? I dont think so, What if Tether drop to 0.5$ or 0.1$? what will be happen to BTC price if Tether drop to 0.5$?
I think Tether bank account could be frozen by Central bank mafia.

Tether is an interesting case because it is continually in the news over sketchy behaviors, yet seems to always manage to claw its way back to parity with the U.S. dollar or even go above it. I believe speculators are also jumping in to it as an arbitrage opportunity. Given that the company behind it is possibly engaged in fractional reserve backing by the U.S. dollar and is untransparent, I think it's best for people to stay away from it.

One big reason for this is that many are still using Tether as a stable coin though there are now many newcomers out to get their share of the lucrative market. However, am sure that with Tether's many big problems soon things can go spiral and there can be an exodus of users to other much better stable coins. Not unless, of course, if the people behind Tether can be able to successfully fixed their problems.

[pinoyden]

Bitcoin is the king of all altcoin

no its not  . bitcoin is the king of all cryptos and bitcoin is not an altcoin but its the main cryptocurency  .

and never could be cross by any one altcoin forever,

no one knows what the future holds for bitcoin .  for now yes bitcoin is still the king but we will never know in the future  , maybe some crypto will be verry indemand and it will de throne bitcoin in the number one spot  .

maybe tether is not the competitor of bitcoin and always hard to raised of how bitcoin price until several years later.

tether is a stable coin and stable coins means they have fix value so its steer clear that they are not a competitor to bitcoins  . bitcoin and tether are partner's in a crime because tether saves the value of bitcoin from the hazards of volatility  .

[Treckmountaoin4day]

I don't use USDT for long term storage. I use it for trading in the short term, mainly to avoid jumps. And then I have time to make a decision.

[aad140386]

I think the answer in this question is quite obvious. Bitcoin, of course. Tether is nothing more than the American dollar and now it acts simply as a stabilizing currency. In addition, Tether’s market capacity is limited to providing real money, and judging by the latest checks, Tether’s provision of real currency is somewhere between 73-75%. This means that I would no longer strongly trust this organization. They behave like banks. They do not have full procuring of which they declared. Bitcoin has limited emission and cost of bitcoin forms the market. It suits me more than a dollar, which in 2019 is not secured except the words of the head of the federal reserve bank.

[kakonhat]

Do you Tether is stable forever? I dont think so, What if Tether drop to 0.5$ or 0.1$? what will be happen to BTC price if Tether drop to 0.5$?
I think Tether bank account could be frozen by Central bank mafia.

Tether is just another cryptocurrency, not a USD. So it could happen anything like as others cryptocurrency. BTC value doesn't depend on Tether value anyway. So the Tether price could drop.

[Wakhid Mukti]

Do you Tether is stable forever? I dont think so, What if Tether drop to 0.5$ or 0.1$? what will be happen to BTC price if Tether drop to 0.5$?
I think Tether bank account could be frozen by Central bank mafia.

There is no effect if Tether suddenly drops to $ 0.5 or more. Now there are many stablecoins that have started to emerge and are ready to replace the role of Tether. Besides, the BTC value is absolute and the benchmark is USD, not Tether. Tether appears as a stablecoin that can be moved from one exchange to another or one wallet to another in a safe and fast way without a complicated process.

[Hannahanto]

I don't think Bitcoin's value depends on any other crypto currencies either its a stable or a coin with flexible values. Bitcoin as a mother of crypto currency stood firm with its growth from the beginning. Tether and other stable coins have come up benefiting traders on maintaining its value stable. Tether named as a stable coin and wonder if its value would either fall down or move up.  

[pey]

Tether could drop to $0.75 or $0, it all depends on whether it is fully backed or they can make people believe so. I would not hold large amounts of tether because it has always been a shaddy operation.

[DreamStage]

I believe if that happens Bitcoin price will rise instead dropping since some of the Tether users might wanna move to Bitcoin instead since it's a better, more reliable stable coin.
Just like it happened before it can happen again.

But i don't think it will drop just because of some other alt coin drops his price. That's just some typical conclusions without concrete evidence.

[bbc.reporter]

Tether could drop to $0.75 or $0, it all depends on whether it is fully backed or they can make people believe so. I would not hold large amounts of tether because it has always been a shaddy operation.

USDT was always backed by real US dollars. The issue was not about Bitfinex was printing money from nothing. This is fud sensationalized by the bitcoin news media. The real issue is Bitfinex have their $850m taken by a questionable money processor and Bitfinex covered the loss with real US dollars from their Tether fund without informing their users and investors.

[TimeBits]

BITCOIN AND TETHER

BITCOIN IS VERY EXPESIVE BEHINF TETHER TETHER NOT WITH BITCOIN IN PRICE BUT WE WAITE SOMTHING GOOD TO SHOW

you sir are a genius, nikola tesla is that you?
https://www.youtube.com/watch?v=LLpIMRowndg

[Herbert2020]

Tether could drop to $0.75 or $0, it all depends on whether it is fully backed or they can make people believe so. I would not hold large amounts of tether because it has always been a shaddy operation.

USDT was always backed by real US dollars. The issue was not about Bitfinex was printing money from nothing. This is fud sensationalized by the bitcoin news media. The real issue is Bitfinex have their $850m taken by a questionable money processor and Bitfinex covered the loss with real US dollars from their Tether fund without informing their users and investors.

that is only one of the many problems with Tether but the main problem will always remain the same thing: the fact that Bitfinex has never been capable of proving that USDT was actually backed by real USDs and that creates a certain level of shadiness both about this coin and the company.
besides at the end of the day Tether is still centralized and that means it has a huge risk since if something happens to that company the value of the coin drops to zero immediately.