USDT has broken the buck, once Tether goes to zero so does the real value of BTC

[iTradeChips]

I have not really thought of that, the idea of what will happen to Tether if all the exchanges decided not to accept that coin anymore. Maybe that will be a bad thing that might have some consequences with Bitcoin also. Yah, we always say that Bitcoin is not affected with Tether and what ever happens with Tether will not affect Bitcoin in any way but also we have to think that every action with a big coin should have some temporary setback to Bitcoin as well. Especially with one that is being used by millions of traders and investors.

[semobo]

Many investors choose to keep their savings in USDC and DAI. Do not store all your stablecoins in USDT alone.
USDC is gaining a lot in popularity because it has a fair audit, although the company can lock your coins in a wallet just like USDT.
DAI is the most decentralized stablecoin without blocking.

USDC is nothing different from USDT but the only thing is it comes from reputed exchange and also BUSD is gaining the reputation in the recent days since Binance is forcing their customers to use BUSD for more perks so literally people are moving to other stable coins but as far as I know DAI is the best stable coin for long term since it backed by smart contracts of ethereum not any assets which we don't know that they are really exist or not.

Apart from DAI what are the ither decentralized stable coin exists guys?

[Jackl87]

Well as people have been saying for months, Tether is crap, and the entire price of all crypto is traded in Tether, which just happens to have a CAP of $63Billion USD, but only has $2B of real assets ( aka cash )

So right now they just lost $3B ( now $60B ) that means if the first to leave already got their 'cash', then there is no cash left for the bag-holders ( HODLer's )

There was always a lot of speculation and discussions going on about Tether since 2019 when they changed their wording from "every USDT is backed by a real USD" to "we have enough reserves to back every USDT with a real USD". I think that this change of wording really is a reason to be worried because the audits that bitfinex as the parent company of tether is presenting to prove that every USDT is still back 1:1 by a real dollar are not living up to traditional auditing standards.
What you are saying though that they only have 2B$ worth of assets but have 63B$ worth of UDST circulating would be extremly worrying if these would really turn out to be true.
I also switched from using USDT to USDC a while ago.

[slaman29]

First of all, Tether won't go to zero. I don't like it at all, but if anything it's proven that it can survive regulations and for a company, it's actually too big to fail at the moment. Not that they can't get in trouble, but they can't go to zero without finding a replacement.

Secondly, when has the real value of BTC ever relied 100% on Tether? Or even the entire BTC market?

[FinneysTrueVision]

Many investors choose to keep their savings in USDC and DAI. Do not store all your stablecoins in USDT alone.
USDC is gaining a lot in popularity because it has a fair audit, although the company can lock your coins in a wallet just like USDT.
DAI is the most decentralized stablecoin without blocking.

A great percentage of DAI is backed by USDC and other centralized stablecoins so it carries some of the same risk as the alternatives. While DAI itself can't be frozen, it would be fairly easy for USDC issuers to freeze the collateral being used to back DAI if they were worried about illicit activity.

[Woodie]

We all know for a fact that tether is pegged to the dollar and here you say there is a possibility of it going to zero, that itself translates into fiat breaking which isn't possible atm because of several cash equivalents that form the basis of support of cash such as bonds, metals like gold and many others and not forgetting cash is a centralized asset so our governments can't allow fiat to crash..

[semobo]

First of all, Tether won't go to zero. I don't like it at all, but if anything it's proven that it can survive regulations and for a company, it's actually too big to fail at the moment. Not that they can't get in trouble, but they can't go to zero without finding a replacement.

Secondly, when has the real value of BTC ever relied 100% on Tether? Or even the entire BTC market?

Literally, tether can go to zero because tether is a currency backed by reserves that resemble the value of USD which means tether holds the reserve assets for their tokens but we never know they actually hold reserves or they become something like fiat which are printing just paper and liquidating it into the market.

[masterrex]

IMHO, I think the author has only expressed her opinion, But if we closely examine beyond that argument, Tether Ltd really looks suspicious, if the USDT was really back with I is to 1 ratio against the dollar, Tether Ltd should establish it with supported facts and evidence for the sake of that argument and remove any doubt.

But in terms of the Bitcoin price and value, if something happens on USDT and it will become zero, I think it will only temporarily affect Bitcoin price and eventually, it will return to normal asap. Just because USDT is just one of the many dollar-pegged cryptocurrencies in the market that's why it will not affect that much. But if that really happens the volume of USDT-Bitcoin pair will simply go to other Bitcoin- Dollar pegged pairs, like USDC, BUSD, Pax, etc.