Tether FUD

[brainactive]

What are your thoughts on the Tether FUD? Is it something to be concerned about? Could it possibly bring down Bitcoin if Tether implodes? Even Vitalik has expressed concerns about Tether and he doesn't fuck around

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[Oshosondy]

Bitcoin is not a fiat-pegged currency, tether is a fiat pegged currency, bitcoin is not pegged with anything and remain bitcoin. What does tether has to do with bitcoin in comparison?

Know that fiat are depreciative which makes tether to be depreciative.

[mk4]

Idk, but wouldn't it make more sense for bitcoin to go up in price if ever something goes bad with Tether? I mean, holders of Tether would be pretty much forced to trade their USDT for either real USD, or BTC.

But idk, negative sentiment has existed for years now. And thankfully, other less-shady stablecoins like USDC are slowly but surely gaining more traction.

[brainactive]

Bitcoin is not a fiat-pegged currency, tether is a fiat pegged currency, bitcoin is not pegged with anything and remain bitcoin. What does tether has to do with bitcoin in comparison?

Know that fiat are depreciative which makes tether to be depreciative.

The concern is that Tether's reserves are not backed and they are essentially running a Ponzi like scheme. Wouldn't surprise me since it's run by dodgy Bitfinex people.

Over half of BTC trades are for USDT so if people lose faith in Tether, could lead to a severe liquidity shock for Bitcoin market

[Oshosondy]

The concern is that Tether's reserves are not backed and they are essentially running a Ponzi like scheme. Wouldn't surprise me since it's run by dodgy Bitfinex people.

Over half of BTC trades are for USDT so if people lose faith in Tether, could lead to a severe liquidity shock for Bitcoin market

I read this like some weeks or a month ago:

Tether discloses full reserve breakdown for the first time

I am not still concerned about the reserves that was decleared, but there is nothing tether has to do with bitcoin, most bitcoiners know what you are talking about, including the whales, this will not be a shock if tether crash. But I do not see tether to crash though, but bitcoin is bitcoin, its price is not controlled by any other cryptocurrency.

Tether is not the only fiat-pegged coin, also many people will prefer the option to convert to fiat directly instead of fiat-pegged coins like tether. 

[brainactive]

Idk, but wouldn't it make more sense for bitcoin to go up in price if ever something goes bad with Tether? I mean, holders of Tether would be pretty much forced to trade their USDT for either real USD, or BTC.

But idk, negative sentiment has existed for years now. And thankfully, other less-shady stablecoins like USDC are slowly but surely gaining more traction.

Not quite, I think you are underplaying it. Say you're a whale who trades regularly. You've just traded 1000 BTC for $30m USDT. News breaks out that Tether is done. Market loses faith, value of USDT goes to 0. You're just lost $30m.

Given half of BTC market trades for USDT (and not fiat) we are looking at multi billions of dollars completely dissipated into thin air. Bitcoin price is not gonna rise unless people put in more money which is difficult after a severe liquidity shock like I described above

[mk4]

Not quite, I think you are underplaying it. Say you're a whale who trades regularly. You've just traded 1000 BTC for $30m USDT. News breaks out that Tether is done. Market loses faith, value of USDT goes to 0. You're just lost $30m.

Given half of BTC market trades for USDT we are looking at multi billions of dollars completely dissipated into thin air. Bitcoin price is not gonna rise unless people put in more money which is difficult after a severe liquidity shock like I described above

You're probably right about the part that I might not realize the dire consequences(because I haven't really thought of this topic deeply), but the value of USDT on exchanges doesn't just magically go to zero the moment bad news gets released. It goes to zero actually by the USDT being heavily sold in exchange for BTC or other assets.

[BlackHatCoiner]

Can we have a thread that contains the "ether" without "Vitalik"? It'd be nice.

Whether an altcoin has success or not, it can only do good to Bitcoin. I believe that most of the people have understood that Bitcoin is what we all want after all. Any other crypto isn't ever going to be same like adopted. The majority of those coins out there make all these promises by the belief that they'll be globally adopted.

Why I said the above? Because, Tether has a small relation with each crypto through the provided easiness of each trade. All the traders end up on Tether when they're done with their earnings.

Could it possibly bring down Bitcoin if Tether implodes?

Why would it bring down Bitcoin if a stablecoin imploded? Oh and by the way, how can an IOU of $1 implode? Don't you see the irony?

Its value of Teher is unique and stable because it is a Stabecoin

Question of the day: One bitcoin is valuable. Will one piece of paper saying that I owe you one bitcoin be valuated same? Or: Does it have any reason to be valuated?

[BIN-BIN]

One can not compare Bitcoin with tether because they both have different contexts while tether is strong centralized crypto which is tied to the dollar and bitcoin being decentralized and not controlled or tied to any Centralized currency.

[nurilham]

The FUD will be always influencing once we are still in trading because many have their own goals that make us hate or like something else. And out the FUD or bad news of Tether, let's we are patient with the wording will always say that Tether will have also some FUD several weeks ago and this is not rising up because of the down market. But how can the FUD end? Will never.
I currently always use Tether USDT in order to trade, because this is the most FOMO and we can handle and use

[poodle63]

i'm really concerned about this and have converted my usdt holding to DAI stablecoin atleast it's decentralized and can't vanish into thin air like tether but i'm still holding some portion in usdt anyway
although some people keep saying that tether is too big to be gone like that but everything is possible better safe than sorry I guess although DAI has significantly lower market listing but its not lacking the market either.
and I also planning to diversify stablecoin holding to various stablecoins as well.
if people stop centralizing their capital to just one stablecoin more specifically a private owned stablecoin i think it could mitigate the market from something like massive dumping due to tether's "time bomb" which hopefully
not happening

[JeffBrad12]

forget it and tether FUD will give only a temporary impact and we have experienced that so many times tether got FUD. tether FUD will be affecting the market as the stable coin has become the main gateway for the new money to enter into the crypto market but remember that if we will also recover again.
The crypto market was not easy to be dumped by the FUDers. FUW will always still exist dude.

[TheUltraElite]

Could it possibly bring down Bitcoin if Tether implodes?

Depends on your perspective of what "bringing down" means. It is not a war of currencies out there but they are all trying to coexist and they will coexist with time because this is a democracy and not an autocracy. Currently the only use I see for tether and other stablecoins is that they can be an intermediary for dollar-cost-averaging when trading at market highs or lows.

Other than that it is a fiat-pegged currency created to be a stablecoin. If there any future in it? Possible if their devs can think of something new to do with it.

Even Vitalik has expressed concerns about Tether and he doesn't fuck around

Completely your own choice to believe in it or not. Like I said, free speech is allowed and you have to use your own knowledge to determine risks and rewards.

[dhemasm]

What are your thoughts on the Tether FUD? Is it something to be concerned about? Could it possibly bring down Bitcoin if Tether implodes? Even Vitalik has expressed concerns about Tether and he doesn't fuck around

Well, the Blockchain Community is very solid and prioritizes transparency so basically it's not FUD but a fact that really happened. We need to be concerned about this because Tether is one of the most widely used Fiat in the global market today and it is very worrying that as far as I have read that USDT/Tether is not backed up by real assets (less than 10% on balance sheet) and the rest only commercial paper or fictitious assets. It's possible that this will have an impact on the Bitcoin market, Well let's see because this has been going on for a long time.

[danherbias07]

Bring down Bitcoin? It never existed when Bitcoin was on the path of gaining a higher value. Then, it's like a mushroom that popped out of nowhere.
If there will be an effect, it will be Bitcoin, Ethereum, and XRP that would gain more value when USDT is out.
Investor will not try to withdraw them but rather put them in a different investment like the names that was said above.

We might go back old school on how the market fluctuates if ever stable coins are brought down.

[Bitcoinjheta]

there is nothing to worry about the tether coin when it rose to 3rd spot of coinmarketcap. USDT is a fiat pegged currency and stablecoin it cannot bring down with the value of bitcoin. Btc is highly volatile with the value equivalent to dollar is so high while usdt has only $1 value in the market.

[Jackl87]

What are your thoughts on the Tether FUD? Is it something to be concerned about? Could it possibly bring down Bitcoin if Tether implodes? Even Vitalik has expressed concerns about Tether and he doesn't fuck around

The thing with tether and i guess the main reason why people have concerns about it is the fact that we can not be 100% sure anymore that every USD-T that is minted is still backed by a real USD. In 2019 they changed their official wording from "every USD-T is backed 1:1 by real USD" to "we have enough reserves to cover every USD-T that is printed and from that point on people started to raise questions. I for myself am also using more and more USDC now instead of USD-T because USDC is made by coinbase and therefore regularly audited so you can be sure that here every USDC is really backed 1:1 by a real dollar.
If Tether should really implode than i think the effects on the whole crypto market will be huge. Tether is the 3rd biggest coin in terms of market cap and if it will go down i can easily see the total market cap going down by 50% or even 75%. So let's hope that Tether will stay stable.

[leea-1334]

Tether FUD is as old as Tether itself. Just like Ripple. So here is the deal,,, if you think they actually got away with a small fine and now this means they actually can still operate, then you are fine. But if you think that all their shady dealings mean that it is going to one day be a rug pull (like I do), then you better pull out of USDT asap.

[Beparanf]

there is nothing to worry about the tether coin when it rose to 3rd spot of coinmarketcap. USDT is a fiat pegged currency and stablecoin it cannot bring down with the value of bitcoin. Btc is highly volatile with the value equivalent to dollar is so high while usdt has only $1 value in the market.

Marketcap of USDT is not the consider but the issue behind the accountability of there fiat reserved in the bank. Bitcoin will be heavily affected by USDT if ever it will turn scam since the majority of paring of BTC is in USDT and everyone will be panic sold once pairing was halted due to issue. Total chaos on crypto will occur.

[mindrust]

What are your thoughts on the Tether FUD? Is it something to be concerned about? Could it possibly bring down Bitcoin if Tether implodes? Even Vitalik has expressed concerns about Tether and he doesn't fuck around

Vitalik is a clueless fool. Tether is as solid as a rock. If you are not caught up with the latest news, let me tell you. Tether is being audited by the New York Attorney General every 3 months or something. If NYAG says Tether is OK, then it is OK. Therefore you shouldn't worry about it. Vitalik is doing concern trolling on Bitcoin. He should focus on his own home-project instead.