jaysabi
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December 27, 2020, 05:16:36 AM |
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There is no reason to convert your Volatility coins into fiat when we already have stable coins like USDT, USDC and DAI, I'm sure many people are just realizing that now, USDT is the most popular stable coin and some have a bad feeling about the stable coin because it's centralized, the fact is look around you, even decentralized coins aren't safe
I think people have a bad feeling about it because it's not transparent, no? Centralization isn't inherently a bad thing. The thing that makes something untrustworthy is an inability to understand how it functions, whether it's centrally run or not. The fact that no one can verify USDT is backed by anything is what makes it risky.
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exstasie
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December 27, 2020, 10:26:37 AM |
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I think people have a bad feeling about it because it's not transparent, no? Centralization isn't inherently a bad thing. The thing that makes something untrustworthy is an inability to understand how it functions, whether it's centrally run or not. The fact that no one can verify USDT is backed by anything is what makes it risky.
Nobody can verify their BTC or USD balances are backed by anything at Coinbase or Bitstamp either. No audits have ever been done. Yet all the attention is on Tether. Funny, that! Just saying! ![Tongue](https://bitcointalk.org/Smileys/default/tongue.gif) The real issue is about avoiding third party risk, period. I'm afraid of Bitstamp for completely different reasons: I'm worried they'll freeze my money for months and maybe even send my information to the police. That's what they do, even if the balances they issue are fully backed.
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bryant.coleman
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December 27, 2020, 01:41:31 PM |
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There is no reason to convert your Volatility coins into fiat when we already have stable coins like USDT, USDC and DAI, I'm sure many people are just realizing that now, USDT is the most popular stable coin and some have a bad feeling about the stable coin because it's centralized, the fact is look around you, even decentralized coins aren't safe
I think people have a bad feeling about it because it's not transparent, no? Centralization isn't inherently a bad thing. The thing that makes something untrustworthy is an inability to understand how it functions, whether it's centrally run or not. The fact that no one can verify USDT is backed by anything is what makes it risky. Centralization is bad, because the Tether foundation can freeze your tokens without a valid reason. The IRS and other government agencies can seize your wealth, if they are stored in centralized coins such as USDT. Bitcoin was invented by Satoshi Nakamoto in 2008, mainly to prevent such incidents. There was a reason why he went for a decentralized coin with no central authority. Stablecoins such as USDT and centralized cryptocurrencies such as XRP are exactly opposite of what Satoshi had in mind.
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Tushar Ramani
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December 28, 2020, 08:27:19 AM |
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You're right. The team has not even disclosed its price to remain $1. Here are a few points to look at the other side: - 20B circulation with nothing backed
- No proof of funds either
- Banking partner on the Bahamas
- Lawsuits are pending
- No physical operation location
- Without any regulation
- Prints n x USDT like feds
I am worried about my funds in USDT. I think I have to move to USDC or BUSD. That is some serious shit man. It could be very disastrous if any one of the point goes wrong from the above list that you made. At this point tether is like tip of ice burg on the verge of imbalanced posture and the cause could be anything from above. I don't know why but since the bitcoin has risen in the price most of the people have secured their assets in the USDT and that's ridiculously heavy burden on this firm. Im not sure how they will maintain the price to optimise the USD rate but if anytime huge dumping starts they will have hard time doing so. And that legal petition is also heavy risk for this project including no physical location can have law suit filed more stringently. Well, I didn't even know this and had USDT in 4 figure amount. One of the threads here brought my attention and I researched a bit. Now I have moved all of em to USDC now!
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jaberwock
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December 28, 2020, 08:39:09 AM |
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By the looks of it this superb increase in bitcoin doesn't negate the USDT number and that is the funny part of it. What happens when bitcoin goes down a lot? People sell their bitcoins and that is why Tether marketcap goes up, because they trade it for USDT and that means USDT is needed a lot, if there are not enough in the market Tether prints more and people can just exchange it for USDT easily thanks to that.
However what happens when bitcoin becomes 28k+ ? Because that means everyone is selling their USDT and buying Bitcoin with it, which means we do not need this much USDT in the market, does it get lower? Obviously not. So, that means when people sell their coins to USDT they print more, but when they sell their USDT to get coins they do not burn theirs, they just let the market handle that part instead. This shows that USDT doesn't have good intentions at all.
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sana54210
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December 28, 2020, 10:46:27 AM |
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Tether is no longer fully pegged to US dollar so why would anyone continue and they have also have a lawsuit against in New York, it’s like a serious and I have been seeing questions popping up everywhere online on how this is going to affect the market if they happen to collapse. This is the best time to look for the coins that are reliable.
Obviously USDT is "unbacked USDT" in the eyes of law because there is nothing backing it up for real. It looks like Tether is backing it up but how many people actually gave USDT to tether to get USD in return? Not many I would say, not 20 billion dollars worth of check on them for sure. It means most people use it just to feel like it worths 1 USDT equals to 1 USD and thats probably the case, but without the real backing of it thats just a guess. Most people who want to cash out changes their USDT into bitcoin and then change it to dollars that way, not directly from USDT to USD at all. Which is why I would assume that it is unbacked until proven otherwise, I would personally need to see some sort of proof that someone turned their USDT into same amount of USD from Tether itself, and not a small amount neither, I would need millions of dollars proven as well, otherwise they just "say" that but how can we believe them?
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ene1980
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December 28, 2020, 12:59:28 PM |
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It's very much a "path of least resistance" kinda deal. Regardless of how shady it looks, traders want the liquidity. It's shortsighted and risky, but it's convenient. They'll keep using it until it blows up in their face.
Everyone knows that USDT will blow up and still there is no other choice and hence forced to trade using that. With SEC coming hard on Ripple we should expect more rulings to come in the near future and once the shady market is clamped we might see the entire market coming down. I am expecting the authorities to shut down USDT altogether like they did with Liberty Reserve.
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DooMAD
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December 28, 2020, 04:18:10 PM |
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I am expecting the authorities to shut down USDT altogether like they did with Liberty Reserve.
Maybe, but something tells me it won't end there. While it would definitely knock a fair amount of confidence out of the market, some people wouldn't give up at that point and would probably switch to a different pegged token. The implosion of Gox wasn't enough to put people off using exchanges, despite making the risks abundantly apparent, so the implosion of USDT probably won't be much different. Doesn't matter how many people get burned, it's seldom treated as a learning experience.
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Betwrong
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December 29, 2020, 09:44:49 AM |
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I think people have a bad feeling about it because it's not transparent, no? Centralization isn't inherently a bad thing. The thing that makes something untrustworthy is an inability to understand how it functions, whether it's centrally run or not. The fact that no one can verify USDT is backed by anything is what makes it risky.
Nobody can verify their BTC or USD balances are backed by anything at Coinbase or Bitstamp either. No audits have ever been done. Yet all the attention is on Tether. Funny, that! Just saying! ![Tongue](https://bitcointalk.org/Smileys/default/tongue.gif) The real issue is about avoiding third party risk, period. I'm afraid of Bitstamp for completely different reasons: I'm worried they'll freeze my money for months and maybe even send my information to the police. That's what they do, even if the balances they issue are fully backed. But they can do it only if really big amounts involved, like hundreds of thousands USD, right? Those are measures to prevent money laundering on a massive scale. Law-abiding citizens have nothing to worry about. Am I right or am I missing something?
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BITCOIN TO THE MOON ☾ ₿ ₿ ₿ ₿ ₿ ₿ ₿ ₿ ₿ ₿ ₿ ₿ ₿ ₿ ₿
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exstasie
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December 30, 2020, 08:05:08 AM |
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The real issue is about avoiding third party risk, period. I'm afraid of Bitstamp for completely different reasons: I'm worried they'll freeze my money for months and maybe even send my information to the police. That's what they do, even if the balances they issue are fully backed.
But they can do it only if really big amounts involved, like hundreds of thousands USD, right? Those are measures to prevent money laundering on a massive scale. In one years time, a single BTC might actually be worth hundreds of thousands USD, so this is relevant even to us little people. ![Wink](https://bitcointalk.org/Smileys/default/wink.gif) Be careful who you do business with. I wouldn't go anywhere near Bitstamp after the horror stories I've heard. Law-abiding citizens have nothing to worry about.
Famous last words......
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Untomabur
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December 30, 2020, 11:40:23 AM |
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Tether is indeed very popular as a stable coin in the cryptocurrency world, and is almost always used by all exchanges, but remember, stable coins are the same as centralized coins, meaning that because the supply of these coins is backed by fiat, of course there has been a lot of controversy for USDT, moreover. they are in the United States and soon the SEC is also eyeing the USDT.
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South Park
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December 30, 2020, 07:50:31 PM |
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I am expecting the authorities to shut down USDT altogether like they did with Liberty Reserve.
Maybe, but something tells me it won't end there. While it would definitely knock a fair amount of confidence out of the market, some people wouldn't give up at that point and would probably switch to a different pegged token. The implosion of Gox wasn't enough to put people off using exchanges, despite making the risks abundantly apparent, so the implosion of USDT probably won't be much different. Doesn't matter how many people get burned, it's seldom treated as a learning experience. It is quite simple actually people never think it is going to happen to them so instead of taking the best approach which is to learn from the mistakes of others they have to learn by being burned themselves but while there are instances in which this can be the best way to really learn something there are many instances in which it is the most painful way to learn and unfortunately many people never think about that possibly until it is too late for them to do anything about it.
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inoes
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December 30, 2020, 11:17:49 PM |
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I was scrolling through cmc and I didn't realise until now that tether has the 4th highest market cap at ~$20bn. This feels like a really high risk asset and that's probably reflected in it having a 5x market cap daily trading volume.
It's probably just something to take note of that if it isn't physically backed and we see massive volatile moves then don't trust it to peg the dollar especially if it keeps getting a higher and higher pool of funds that are thought to control it (its a shame a lot of sites use it in futures).
whatever you say maybe all of it is true. why can Usdt have such a market cap? This is natural because Tether controls many Erc20, Trc20, Bep2, Omni, Bsc blockchains. so it's natural that many people find it benefit, especially if the transfer uses the Trc20 network which is completely free.
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mindrust
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January 01, 2021, 01:32:41 PM |
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It's very much a "path of least resistance" kinda deal. Regardless of how shady it looks, traders want the liquidity. It's shortsighted and risky, but it's convenient. They'll keep using it until it blows up in their face.
Everyone knows that USDT will blow up and still there is no other choice and hence forced to trade using that. With SEC coming hard on Ripple we should expect more rulings to come in the near future and once the shady market is clamped we might see the entire market coming down. I am expecting the authorities to shut down USDT altogether like they did with Liberty Reserve. Question is... what are they waiting for? Will they do it after everybody buy bitcoin from $100k? Why did they wait for ripple to become that big for years before they decided to shut it down? How many thousands of people were scammed by ripple? Do they want the same thing for tether&bitcoin?
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exstasie
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January 02, 2021, 11:02:30 AM |
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Everyone knows that USDT will blow up and still there is no other choice and hence forced to trade using that. With SEC coming hard on Ripple we should expect more rulings to come in the near future and once the shady market is clamped we might see the entire market coming down.
I am expecting the authorities to shut down USDT altogether like they did with Liberty Reserve.
Question is... what are they waiting for? The matter of jurisdiction raises interesting questions, doesn't it? On paper, Tether doesn't serve US customers, doesn't issue them USDT, and doesn't transmit money for them since users send it peer-to-peer over blockchains themselves. If they don't do business in the US, what authority does the US government have to shut them down? The CFTC would argue they have jurisdiction if Tether is being used to manipulate a CFTC-regulated market, such as Bitcoin futures. And that's why they probed Tether starting in late 2017. But the fact that we are now here in 2021 and nothing has come of it......doesn't that suggest they have no case? Why did they wait for ripple to become that big for years before they decided to shut it down? How many thousands of people were scammed by ripple? Do they want the same thing for tether&bitcoin?
Touche. They do take forever to build up these airtight federal cases. Maybe that's what is happening. I have a working theory that New York's case against Tether is really all about the discovery process. They want to hand evidence to federal investigators showing, for example, that Tether continued serving US customers long after they claim to have stopped.
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DooMAD
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January 02, 2021, 01:08:59 PM |
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Question is... what are they waiting for? The matter of jurisdiction raises interesting questions, doesn't it? On paper, Tether doesn't serve US customers, doesn't issue them USDT, and doesn't transmit money for them since users send it peer-to-peer over blockchains themselves. If they don't do business in the US, what authority does the US government have to shut them down? The CFTC would argue they have jurisdiction if Tether is being used to manipulate a CFTC-regulated market, such as Bitcoin futures. And that's why they probed Tether starting in late 2017. But the fact that we are now here in 2021 and nothing has come of it......doesn't that suggest they have no case? Why did they wait for ripple to become that big for years before they decided to shut it down? How many thousands of people were scammed by ripple? Do they want the same thing for tether&bitcoin?
Touche. They do take forever to build up these airtight federal cases. Maybe that's what is happening. I have a working theory that New York's case against Tether is really all about the discovery process. They want to hand evidence to federal investigators showing, for example, that Tether continued serving US customers long after they claim to have stopped. My assumption has always been that their preference would be that private companies are not issuing tokens which are tied to the national currency. Libra/Diem still hasn't been given the all-clear yet and they're doing everything they possibly can to jump through regulatory hoops. What if they simply want to avoid the likely game of whack-a-mole that would ensue? Imagine they squash Tether, so users immediately switch to a different stablecoin and the whole sordid affair starts anew. Maybe they're planning to launch an assault on all stablecoins in one fell swoop? As the expression goes: " When your quarry goes to ground, leave no ground to go to." I'm probably giving them too much credit by suggesting they possess that much foresight, though. ![Grin](https://bitcointalk.org/Smileys/default/grin.gif) So yeah, it's probably the discovery thing.
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fullhdpixel
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January 04, 2021, 10:09:23 AM |
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Tether is indeed very popular as a stable coin in the cryptocurrency world, and is almost always used by all exchanges, but remember, stable coins are the same as centralized coins, meaning that because the supply of these coins is backed by fiat, of course there has been a lot of controversy for USDT, moreover. they are in the United States and soon the SEC is also eyeing the USDT.
Stablecoins are not even profitable so they are worse than the centralized coins. 1 USDT will always worth 1 USD so there is no way of making any profit at all by buying usdt, whereas let's say XRP is centralized that much we already know and has been proven in the last week, we could profit from it, buy xrp and if price goes up you earned some profit from it. Basically it is not the same thing but at least it is a bit closer to what the reality is. Hence I believe it is quite useless to use stablecoins because they are both centralized and very dangerous and risky, while also not profitable neither, which makes them as useless as it gets. So long story short, use things like DAI if you want stablecoin, do not use ones that are centralized, I have heard talks about decentralized ones that will be also profitable to hold as well for interest rates, those will be the real earners.
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Beerwizzard
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January 04, 2021, 10:27:49 AM |
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Stablecoins are not even profitable so they are worse than the centralized coins. 1 USDT will always worth 1 USD so there is no way of making any profit at all by buying usdt, whereas let's say XRP is centralized that much we already know and has been proven in the last week, we could profit from it, buy xrp and if price goes up you earned some profit from it. Basically it is not the same thing but at least it is a bit closer to what the reality is.
Tether was created by Bitfinex which had to provide a trading pair to US dollar which was not possible back on that days. Even now to trade crypto to fiat you have to pass KYC and not all countries are eligable to trade like this. Instead, we have stablecoins that allow us to trade without any extra difficulties. On binance you don't even have to verify your account. On that case traders got a stable trading paid while exchange is getting a huge trading volume that increase their profit.
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Shasha80
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January 04, 2021, 01:56:07 PM |
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USDT does have a large market cap and is now in 3rd position and has succeeded in replacing XRP's position. This happens because USDT is indeed the most popular stable coin and is widely used by investors. In fact USDT is listed on almost all exchanges, so it is only natural that USDT trades volume over Bitcoin. I myself don't really believe in USDT, but I keep the profit from trading on USDT, because USDT is easiest to find on any exchanges. But I also never kept large funds in USDT.
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bryant.coleman
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January 05, 2021, 05:19:10 AM |
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USDT does have a large market cap and is now in 3rd position and has succeeded in replacing XRP's position. This happens because USDT is indeed the most popular stable coin and is widely used by investors. In fact USDT is listed on almost all exchanges, so it is only natural that USDT trades volume over Bitcoin. I myself don't really believe in USDT, but I keep the profit from trading on USDT, because USDT is easiest to find on any exchanges. But I also never kept large funds in USDT.
Whenever the volatility increases, the demand for USDT also increases. So of the traders go by their logic of "buy low, sell high". But this logic is not very easy to implement in the cryptocurrency market. Those who converted their BTC to USDT three months back, when the prices reached $12,000-$15,000 per coin would be regretting about their decision now.
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