A Sudden Loss of Faith in Tether Would Pose Risk to Bitcoin, JPMorgan Says

[disconnectme]

There is no doubt it is a serious problem to the whole space, thank God Tether team came to their senses and decided to settle the case out of court, which is something I was discussion with some people the right way to go because anytime they are to appear in court the market will react, I just hope that now that the saga is over they can become more transparent about their operations and their accounting

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[TheGreatPython]

Just saw this article "A Sudden Loss of Faith in Tether Would Pose Risk to Bitcoin, JPMorgan Says."

https://www.coindesk.com/a-sudden-loss-of-faith-in-tether-would-pose-risk-to-bitcoin-jpmorgan-says

I don't think so, but what do you think?

(Maybe I am naive, but is there any direct connections between Tether and Bitcoin?)

On contrary if there was a sudden loss of faith in tether, that would mean people would sell their tether, why would anyone want to stay in something that they do not have any faith in? Which means we are going to see people running away from tether, and when they sell their tether what to do they buy with it? That's right, they would buy bitcoins with it.

This is why I think if tether lost all their customers, became a company with zero money in it, and every single USDT in the market was sold back to tether and all the money was taken back from them, we are going to see an insane and unbelievable increase in bitcoin. By comparison tesla bought 1.5 billion dollars worth of bitcoin and increased the market more than 10% higher, if we see 20+ billion USDT all switched to bitcoin we are going to see 2x easily for bitcoin all on first day.

[Webetcoins]

I think he meant the most famous stablecoin out there. There's no doubt about it since the majority of Bitcoin trades are traded in USDT, it even outshines altcoin trades.

Anyway, it's not like it's the end of Bitcoin when people suddenly lose trust on USDT. By far USDT is probably the most suspicious stablecoins out there because of lack of audits and reports on their assets so other predators (other famous stablecoins) will likely try to market their coins to replace the spot of USDT.

I don't think there's going to be any big problem since people have a lot of choices to make. Either use another stablecoin, withdraw their money from exchanges, or use altcoins just like the old days. Sure there's going to be FUD happening that will affect all cryptocurrency (since almost every altcoin is using USDT for trades) but that's only temporary.

Even with that in mind, it would not make any sense that crypto would fall, how could it fall? I mean shouldn't the idea be that people would want to sell their tether and get crypto instead? Shouldn't that cause the price to go up? I mean there is really no logic here where tether being worthless could hurt crypto, after all people who run away from crypto should be capable of actually increasing the value of bitcoin instead, that should be the case honestly.

Of course this doesn't mean that tether will suddenly go down soon, or it doesn't mean that people will lose hope right now, I just mean to say dude said crypto could be bought cheaper because most crypto would be pegged to USDT but I feel like just the opposite is more possible. In fact it would be great for bitcoin if USDT turns out to be something bad, at least people who hold USDT would exchange it for bitcoin no matter what the bitcoin price would be.

[sana54210]

Even with that in mind, it would not make any sense that crypto would fall, how could it fall? I mean shouldn't the idea be that people would want to sell their tether and get crypto instead? Shouldn't that cause the price to go up? I mean there is really no logic here where tether being worthless could hurt crypto, after all people who run away from crypto should be capable of actually increasing the value of bitcoin instead, that should be the case honestly.

Of course this doesn't mean that tether will suddenly go down soon, or it doesn't mean that people will lose hope right now, I just mean to say dude said crypto could be bought cheaper because most crypto would be pegged to USDT but I feel like just the opposite is more possible. In fact it would be great for bitcoin if USDT turns out to be something bad, at least people who hold USDT would exchange it for bitcoin no matter what the bitcoin price would be.

You guys are right, if tether loses any sort of credibility, that would mean great things for bitcoin, because people who leave USDT will go to other crypto, but we are not talking about just bitcoin here, because at this day you do not have just bitcoin as an option, like if they want to go to stable anyway they could turn their USDT into btc for a short while but go towards USDC or BUSD or DAI or anything they want something like that, because if they were in stablecoin they could turn that into crypto for a while but there was a reason why they were in stablecoin and that if that reason is still there, they could still end up using stablecoin easily, and price will not change too much for anything aside from USDT.

Maybe for a short while those other stablecoins could go up in price but people will use arbitrage to make a profit from that for sure.