Bitcoin price- If Tether (USDT) go down, will it be good for Bitcoin?

[eaLiTy]

Now the question is, if Tether ever go down Will it affect the price of Bitcoin and the whole crypto ecosystem?

There is no doubt that any negative impact on the USDT market will have an negative influence on the BTCitcoin market, when the price was rallying in 2017 there were huge amounts of USDT created and circulated by the shady team and even now majority of the users are holding their profits in Tether and it is not a good sign considering their past history and their lack of complete transparency and if there is something that affects the USDT market it will affect the BTCitcoin market as well.

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[exstasie]

Binance already lists at least 3 stablecoins so I'm not seeing this as being near as important as it would have been a few years ago. USDC and PAX are both available and I made a PAX Purchase and Withdrawal for testing and it only took hours. That is not an endorsement just an observation.

The number of stablecoins available doesn't matter. What matters is the size of their markets. By market cap:

Tether $4,139,866,978
USDC $512,336,348
PAX $238,838,402
TUSD $156,266,743
BUSD $18,265,490

The latter 4 combined are only 22% of Tether's market. No matter how you look at it, Tether is a huge part of the crypto market. If it goes down and $4 billion in value gets wiped out, it'll be a massive blow to the ecosystem.

[Wexlike]

Binance already lists at least 3 stablecoins so I'm not seeing this as being near as important as it would have been a few years ago. USDC and PAX are both available and I made a PAX Purchase and Withdrawal for testing and it only took hours. That is not an endorsement just an observation.

The number of stablecoins available doesn't matter. What matters is the size of their markets. By market cap:

Tether $4,139,866,978
USDC $512,336,348
PAX $238,838,402
TUSD $156,266,743
BUSD $18,265,490

The latter 4 combined are only 22% of Tether's market. No matter how you look at it, Tether is a huge part of the crypto market. If it goes down and $4 billion in value gets wiped out, it'll be a massive blow to the ecosystem.

It's really crazy how small the adoption of the other stable coins is. Tether is apparently the big player.

[Hueristic]

Binance already lists at least 3 stablecoins so I'm not seeing this as being near as important as it would have been a few years ago. USDC and PAX are both available and I made a PAX Purchase and Withdrawal for testing and it only took hours. That is not an endorsement just an observation.

The number of stablecoins available doesn't matter. What matters is the size of their markets. By market cap:

Tether $4,139,866,978
USDC $512,336,348
PAX $238,838,402
TUSD $156,266,743
BUSD $18,265,490

The latter 4 combined are only 22% of Tether's market. No matter how you look at it, Tether is a huge part of the crypto market. If it goes down and $4 billion in value gets wiped out, it'll be a massive blow to the ecosystem.

No it doesn't, what matters is the backing of the stablecoin. If its backed by a company that has Fed insurance then its safer than Tether. What also matters is the fact that with all those options as well as alts and King Daddy BTC there is more than enough liquidity to bail out of Tether.

It will actually make BTC market cap larger and will show these retards to stop holding in an unbacked token.

[exstasie]

The number of stablecoins available doesn't matter. What matters is the size of their markets. By market cap:

Tether $4,139,866,978
USDC $512,336,348
PAX $238,838,402
TUSD $156,266,743
BUSD $18,265,490

The latter 4 combined are only 22% of Tether's market. No matter how you look at it, Tether is a huge part of the crypto market. If it goes down and $4 billion in value gets wiped out, it'll be a massive blow to the ecosystem.

No it doesn't, what matters is the backing of the stablecoin. If its backed by a company that has Fed insurance then its safer than Tether.

We're not talking about what is "safer" than Tether. We're discussing what will happen to the crypto market if Tether collapses (from insolvency, law enforcement actions, etc).

Tether doesn't have deposit insurance but its market is 800% larger than the closest competitor. The bigger the market, the more risk exposure investors have = the worse the fallout will be when shit hits the fan.

What also matters is the fact that with all those options as well as alts and King Daddy BTC there is more than enough liquidity to bail out of Tether.

It will actually make BTC market cap larger and will show these retards to stop holding in an unbacked token.

If Tether goes down, 4 billion USDT becomes worth $0. What was previously $4 billion in value waiting to be pumped into crypto becomes $0. Meanwhile, tens of thousands traders and investors across the whole ecosystem will get burnt and lots of exchanges will lose all their liquidity. At the same time, the mainstream media will showcase unprecedented investor losses across dozens of exchanges to paint BTC investment as incredibly risky.

You believe this will be good for BTC prices?

[Hueristic]

The number of stablecoins available doesn't matter. What matters is the size of their markets. By market cap:

Tether $4,139,866,978
USDC $512,336,348
PAX $238,838,402
TUSD $156,266,743
BUSD $18,265,490

The latter 4 combined are only 22% of Tether's market. No matter how you look at it, Tether is a huge part of the crypto market. If it goes down and $4 billion in value gets wiped out, it'll be a massive blow to the ecosystem.

No it doesn't, what matters is the backing of the stablecoin. If its backed by a company that has Fed insurance then its safer than Tether.

We're not talking about what is "safer" than Tether. We're discussing what will happen to the crypto market if Tether collapses (from insolvency, law enforcement actions, etc).

Tether doesn't have deposit insurance but its market is 800% larger than the closest competitor. The bigger the market, the more risk exposure investors have = the worse the fallout will be when shit hits the fan.

What also matters is the fact that with all those options as well as alts and King Daddy BTC there is more than enough liquidity to bail out of Tether.

It will actually make BTC market cap larger and will show these retards to stop holding in an unbacked token.

If Tether goes down, 4 billion USDT becomes worth $0. What was previously $4 billion in value waiting to be pumped into crypto becomes $0. Meanwhile, tens of thousands traders and investors across the whole ecosystem will get burnt and lots of exchanges will lose all their liquidity. At the same time, the mainstream media will showcase unprecedented investor losses across dozens of exchanges to paint BTC investment as incredibly risky.

You believe this will be good for BTC prices?

So you think all the tether will suddenly become worth Zero in one instant everywhere all at once?

I rather think it will be more like a bank run.

[Person610]

No, I think tether value will move to btc or other crypto

[exstasie]

If Tether goes down, 4 billion USDT becomes worth $0. What was previously $4 billion in value waiting to be pumped into crypto becomes $0. Meanwhile, tens of thousands traders and investors across the whole ecosystem will get burnt and lots of exchanges will lose all their liquidity. At the same time, the mainstream media will showcase unprecedented investor losses across dozens of exchanges to paint BTC investment as incredibly risky.

You believe this will be good for BTC prices?

So you think all the tether will suddenly become worth Zero in one instant everywhere all at once?

I rather think it will be more like a bank run.

If fiat withdrawals stop flowing, we'll just see a temporary discount develop in USDT prices as people exit into crypto. This happened in March-April 2017 when Tether lost banking partners. Prices leveled out pretty quickly. I think this effect will be even more dampened next time around due to the strong OTC demand for Tether in China. When the Chinese are bullish, USDT tends to trade at a premium since OTC brokers source it from exchanges like Huobi and Okex. This demand should help mitigate supply from people selling based on fear of insolvency, etc.

But let's say the Department of Justice slaps a seizure notice on Tether's website, seizes a bunch of their bank accounts and servers, arrests executives. In that situation, I believe price will quickly fall near $0. We'll probably see some people buying at low prices betting on a long shot recovery through a court-approved process, but overall I would expect most of that $4 billion to disappear very quickly.

[Hueristic]

If Tether goes down, 4 billion USDT becomes worth $0. What was previously $4 billion in value waiting to be pumped into crypto becomes $0. Meanwhile, tens of thousands traders and investors across the whole ecosystem will get burnt and lots of exchanges will lose all their liquidity. At the same time, the mainstream media will showcase unprecedented investor losses across dozens of exchanges to paint BTC investment as incredibly risky.

You believe this will be good for BTC prices?

So you think all the tether will suddenly become worth Zero in one instant everywhere all at once?

I rather think it will be more like a bank run.

If fiat withdrawals stop flowing, we'll just see a temporary discount develop in USDT prices as people exit into crypto. This happened in March-April 2017 when Tether lost banking partners. Prices leveled out pretty quickly. I think this effect will be even more dampened next time around due to the strong OTC demand for Tether in China. When the Chinese are bullish, USDT tends to trade at a premium since OTC brokers source it from exchanges like Huobi and Okex. This demand should help mitigate supply from people selling based on fear of insolvency, etc.

But let's say the Department of Justice slaps a seizure notice on Tether's website, seizes a bunch of their bank accounts and servers, arrests executives. In that situation, I believe price will quickly fall near $0. We'll probably see some people buying at low prices betting on a long shot recovery through a court-approved process, but overall I would expect most of that $4 billion to disappear very quickly.

Yes, quickly not instantly as you stated before. all that capital will not evaporate into nothingness. There will be attempt to save it with walls and they will probably fail but during that time many will get divested at a huge loss. But that what you get when you trust, #NotyouKeys

[gentlemand]

No, I think tether value will move to btc or other crypto

Tether vapourising means there's no value to move. It's all gone. A sudden giant hole has appeared in a vast number of exchanges and external balances. Even if those who were wiped out did want to stay in crypto they may have nothing to stay with.

I really though Tether would be long gone by now. Full marks for their doggedness but I don't understand how crypto fans have allowed their market to be largely underpinned by a token that's much MUCH worse and more dangerous than regular fiat in every conceivable way.

Even more bizarrely you see people parking value in it for a long term wait when there are exchange with real insured dollars waiting just a short transfer away. It kind of feels like yet another very hard lesson waiting to be ladled out.

[Febo]

If Tether (USDT) go down, will it be good for Bitcoin?

It should be good. So far people day trade. If there would be no stable coins then they would more hold then day trade. Since when selling Bitcoin would have to pay taxes.   But. Tether is not the only stable coin. There are plenty and and more and more are coming. Libra soon, ....  So when tether goes down will be no changes.

No it would not be good. I don't think tether will collapse but in the off chance that it actually did, then it would be disastrous and even if you hold Bitcoin, your Bitcoin value would most likely decrease anyways because it would turn out that tether ended up being some scam and many people would just get out all together and just invest their money in the stock market.

Libra isn't really going to be a tether competitor, its going to be centralized and who knows if it will actually go live. When they announced it many of the government bodies stopped in and tried to stop it. By the way these meetings go, it could be years before Libra is actually released.

Like tether is not centralised? Of course it is centralised it cant work without third party that takes your USD and securely store them and print tether. Or give you USD and burn tether for it.  Yes Libra is at this point meant like a stable coin. It will for sure expand its usecase.  

[exstasie]

I really though Tether would be long gone by now. Full marks for their doggedness but I don't understand how crypto fans have allowed their market to be largely underpinned by a token that's much MUCH worse and more dangerous than regular fiat in every conceivable way.

I thought so too. Frankly, I thought the US government was going to take down Bitfinex and Tether 2-3 years ago. As more time goes on, I'm beginning to wonder if they are bulletproof, set up in ways where the US government can't touch them, aside from maybe nabbing the .com domain.

I really underestimated what the Chinese exchange ban would mean for Tether. It took me a long time to draw the connection between the China ban, Huobi, Okex, etc. setting up offshore USDT-based exchanges, and the explosion of Tether's market cap.

For Chinese people used to parking funds at shadow banks fronting as BTC exchanges, Tether may not look so risky.

[Person610]

They must be paying heaps of taxes 🤷‍♂️