IF USDT would collapse what do you think will happen to the BTC price?

[figmentofmyass]

I am pretty sure it's fractional.

oh it's provably fractional: Tether Lawyer Admits Stablecoin Now 74% Backed by Cash and Equivalents

tbh, i don't believe the FUD about tether printing though, and i don't think it's fractional reserve by design. however, the crypto capital seizure did showcase the inherent risks underlying tether's dollar peg. a single law enforcement seizure ate up 1/4 of their entire banking liquidity.

that should be terrifying for USDT holders, but somehow they keep the faith. tether's market cap just grows and grows.

[teosanru]

Hey Guys

New here but not in the Space.

What's always annoying me about the whole Tether discussion is the fact that everybody that talks about the topic mostly assumes that if usdt collapses (not saying that it will) bitcoin would dump harder than ever before. While I can see that a lot of volume is through tether ( I would say its the majority) the collapse would by no mean be a small event. If you look back tho to end of 2018 when the whole Crypto Capital saga took place and usdt "dumped" into the .80s the only thing that really happened was that btc immediately spiked by a good amount simply because if you price btc/usdt if one collapses the other rises. So let's just assume that the day when tether would collapse actually comes and it's not just a few days of uncertainty. What side would win. A) everybody just want's to flee usdt (into btc) or B) everybody want's to flee crypto as a whole (through btc into "real usd" / coinbase)

Actually the repercussions of USDT collpasing would be that every one who is holding USDT on exchanges would immediately try to sell it off thereby increasing the volume on bitcoin immediately which could shoot up the price. But as now there are many other Stablecoins based on USD so this might not take place to that extent to which people think. Talking about USDT scam I think it's been in market for sometime now and I think it's difficult to imagine a thing like USDT blowing off in a day or two.

Talking about which side would win. There is what you call a psychological effect. People would think if USDT can be blown off so easily what's so different with Real USD or any other stable USD coin pair so it's better to be in any crypto rather than being in a stupid stable coin.

[shoreno]

whats the connect ? i know. your thinking that btc hodler traded thier coin to usdt but i think not all btc hodler are doing it and not only those who hold btc can convert thier asset to usdt but they can be eth or other crypto hodlers .

 i havent seen usdt collapse before but is that even possible for such stable coin but what could really collapse is the coin that are being converted to stable coin but collapse arent unusual . if its in btc i dont believe btc will back to 3 or 4 digits but it can be 5 something .

[Karartma1]

I am pretty sure it's fractional.

oh it's provably fractional: Tether Lawyer Admits Stablecoin Now 74% Backed by Cash and Equivalents

tbh, i don't believe the FUD about tether printing though, and i don't think it's fractional reserve by design. however, the crypto capital seizure did showcase the inherent risks underlying tether's dollar peg. a single law enforcement seizure ate up 1/4 of their entire banking liquidity.

that should be terrifying for USDT holders, but somehow they keep the faith. tether's market cap just grows and grows.

If somebody would ask me "What is the biggest threat to bitcoin today?" I'd say Tether. Bitcoin will, of course, live after a tether collapse still it's market cap will shake the ground like a medium-sized earthquake. We know btc and usdt are a bit intertwined due to the fact that it gives users a lot of convenience over moving funds in and out pretty quickly.
For that reason, I hold 0 usdt. I've never trusted it (let alone the guys who backed it).

[mindrust]

Tether's marketcap was 20B USD last time I checked it. (maybe it is more now I don't know and lazy to see it again)

But marketcap is not really where you should be looking at. (aside from the fact that it x5'ed itself since the beginning of this year) It is the trading volume of BTC/other crypto against USDT.

That's where the real party's at. Few days ago I looked at the BTC/USD trading volume on major exchanges and it is nearly non-existent. People almost only do USDT-BTC trades. There could be several reasons and excuses for this but it is the way it is right now and I don't think this is the healthy way.

What would happen if Tether goes down? Probably moon-shot first, dump later. That's because the insider people would want to leave tether and while some of them would want to have USD immediately, some others would be after one last fuck. (the moon shot I am talking about)

Insiders and big whales would make money from that collapse.

Right now the most important question that keeps my mind busy is that why don't the US authorities make Tether official as a digital USD? If they don't do that, then why don't they raid Bitfinex and audit them?

[Nhor1011]

Almost all crypto exchange are using USDT as a pair to other digital currency even in bitcoin. USDT is a stable coin but it is not really reliable because it has a chance to collapse.

If ever it will happen, of course everything in crypto will become affected specially those who hold USDT on their wallet for long term.

[Findingnemo]

The collapse of USDT is not too far from now in my opinion but before that people will diverse into many stable coins which are actually better than Tether so there will be a dump in four digits for sure as immediate effect but this won't take too long to get recovered to the original state when USDT started to collapse.

[zasad@]

$ 20 billion is a very small amount for the crypto market, and as long as 1 tether is equivalent to 1 US dollar, it cannot be called a scam. Most of the tokens are involved in speculation or are stored in users' wallets. Users are not going to exchange their tokens for fiat, because they can already be paid in many payment systems.
In the near future and with the constant growth of the market, the collapse of the tether is unlikely

[ven7net]

Hey Guys

New here but not in the Space.

What's always annoying me about the whole Tether discussion is the fact that everybody that talks about the topic mostly assumes that if usdt collapses (not saying that it will) bitcoin would dump harder than ever before. While I can see that a lot of volume is through tether ( I would say its the majority) the collapse would by no mean be a small event. If you look back tho to end of 2018 when the whole Crypto Capital saga took place and usdt "dumped" into the .80s the only thing that really happened was that btc immediately spiked by a good amount simply because if you price btc/usdt if one collapses the other rises. So let's just assume that the day when tether would collapse actually comes and it's not just a few days of uncertainty. What side would win. A) everybody just want's to flee usdt (into btc) or B) everybody want's to flee crypto as a whole (through btc into "real usd" / coinbase)

I believe that if Tether crashes, then BTC will rise in price. In simple words, inflation (depreciation) of Tether will occur, and if we are talking about the BTC / USDT pair, then when one of the assets depreciates, the price of the other rises. While this is an unlikely scenario, I believe it could lead to big events in the crypto market. Perhaps the major players have such a plan, and we may well be able to see it in reality.

[DooMAD]

$ 20 billion is a very small amount for the crypto market, and as long as 1 tether is equivalent to 1 US dollar, it cannot be called a scam.

Not even a scam.   

At the very least, it can be called a broken promise.  It was launched under the assertion that 1 USDT would be backed by 1 USD and this is no longer the case.  The goalposts have been dramatically moved because a company couldn't keep its word.  There are no guarantees they won't change things for the worse again.  People are just too trusting and complacent to see it for the ticking time-bomb it is.  Tether, the company, are now in a position where they can see most of the people trading their IOUs couldn't care less when they print another billion or two into existence, so that's what they'll continue doing.

[exstasie]

$ 20 billion is a very small amount for the crypto market, and as long as 1 tether is equivalent to 1 US dollar, it cannot be called a scam.

At the very least, it can be called a broken promise.  It was launched under the assertion that 1 USDT would be backed by 1 USD and this is no longer the case.  The goalposts have been dramatically moved because a company couldn't keep its word.  There are no guarantees they won't change things for the worse again.  People are just too trusting and complacent to see it for the ticking time-bomb it is.

I would guess USDT holders are mainly concerned with the ability to redeem 1 USDT for $1 (i.e. that the peg remains intact) and not whether reserves are 100% backed.

I know this distinction seems trivial, but it's all about the (often urgent) need to hedge fiat value with minimal KYC. That's how Tether builds so much liquidity: large players arbitrage the peg (you may notice USDT spends lots of time trading above $1) and act as market makers on the OTC market and exchanges, while the retail market uses USDT on secondary markets to avoid KYC. It's a symbiotic relationship where there is always robust demand for USDT both on and off exchanges.

[bearexin]

I really hope this never happens. I want to see USDT slowly going down, not crash but slowly, like how people would prefer some other coin. Litecoin is still superbly high for example, but once upon a time it was the second ranked coin in the market, right now it is not and Ethereum and XRP passed it long time ago.

I want the same thing to happen to tether as well, I want to see something like DAI to actually spend a bit more time at top and drop tether inch by inch and in 5 years it should be out of top 10. Of course this is not going to happen, of course we are going to see more and more tether but that scares me a bit, I do not want it to happen but unfortunately it will happen no matter what.

In any case we are just going to live with the fact that tether now is hug and if it ever crashes we are going to see bitcoin go down 50%+ and probably even 80%+ levels.

[meanwords]

I believe that if this happens we will see one of two things. Considering that most of the cryptocurrency transactions are associated with USDT, then we will not be able to quickly switch to a new stable coin, which means that the USDT will be exchanged for Bitcoin and other currencies, which will lead to a wild jump in their prices, and an equally rapid collapse in favor of other stable coins.

I believe so too. Altcoins like ETH, DOGE, or even XRP would have a sharp increase because they are the ones who are mostly being traded pairs in the market. Either that or investors would be forced to find an alternative stablecoin or an alternative exchanges that houses this alternative stablecoins. If not, then they would be forced to use fiats again.

[Dragonfund]

Almost all crypto exchange are using USDT as a pair to other digital currency even in bitcoin. USDT is a stable coin but it is not really reliable because it has a chance to collapse.

If ever it will happen, of course everything in crypto will become affected specially those who hold USDT on their wallet for long term.

It's not really reliable but do you think this minted tokens are done unpurposely, I don't think Tether will be so careless and foolish without making more development and proper regulation to allow minted USDT to reach $20b usd and one day allow it to crash, what I'm saying is that crypto market always does the opposite, there is possibility and probability of doing necessary changes without informing the public. This would give them hedge to accommodate bitcoin and pump the market, one can never tell. Anything is possible in cryptocurrency.
If USDT ever collapse, Bitcoin will gain more shift with inflow of cash and liquidity. A added advantage for bitcoin lovers and maximalists.

[vaultman]

If the dollar plummets in value, then hardly anyone will accept it as an exchange currency for bitcoin, it will be too late. But it is obvious that the demand for bitcoin will grow exponentially, which will give rise to a colossal rise in its price. Therefore, in the survey, I chose the last option. You should always think in advance and it is worth keeping your savings in various types of assets, then you will not have to suffer from the collapse of a particular currency in the market.

[Argoo]

First of all, here you need to clearly find out what we are discussing - the fall of the US dollar or the bankruptcy of the USDT as a stablecoin. I think that the fall in the dollar rate should increase the overall price of bitcoin even in comparison with other world currencies of states. People will save themselves from the depreciation of the dollar and invest in cryptocurrency and, above all, in bitcoin. If, for some reason, USDT disappears from the market as a stablecoin, this should not significantly affect the price of bitcoin.

[OpenCryptoSystem]

The bitcoin price goes up according supply and minting of
USTD or usdc or pax but mostly USDT.
So without usdt the btc would be 200 usd i guess so

But i dont mind we dont mind as long as profit coming i dont care how ethical or how fair it is .

[lixer]

Two digits? Do you seriously mean that bitcoin could drop to under 100 dollars just because USDT suddenly crashed? That sounds way too serious. I would say 4 digits are the realistic place and it will not even become three digits if you ask me. Over 3-4 thousand dollars is the bottom that we have failed to break under for years now, we have tried it multiple times over course of 3 years and we have failed it every single time.

This is why I think it is obvious that even if USDT crashes which is a big deal, the price will definitely not drop to anywhere near the three digit level let alone two digit level. However I am not against the idea that bitcoin will crash because of it, I understand the value USDT brings and I dislike it but I understand it and I know it will go down.

[PerfectCircle]

It will affect bitcoin and every altcoins in crypto space but I'm sure that many will be waiting for such opportunity to buy more bitcoin, every downfall of Bitcoin in value always leads to more adoption rate if we look at things from past histories

[slapper]

Tether is a part of the crytpo world. You can not deny the fact. It has involved in many exchanges and many different crypto aspects with or without our agreement. Many people like Tether because it helps us to easily trade bitcoin to the dollar without having any problem, or KYC. Others say that tether is a big scam since Bitfinex keeps printing new tether without giving any proof that they have enough real USD for reservation. Those people also forget the fact that some tethers are burnt after the trading volume decreases


From my perspective, bitcoin will be dumped when Tether is damaged or collapsed. But soon, bitcoin will recover after this big alteration. Bitcoin is and will always be the strongest cryptocurrency on this planet. People know what they have to do when they see the fall of Tether. 11-year is enough for people to have an advanced viewpoint upon this event