Tether is centralized, is it worth holding

[feelideb]

Almost all stable coin are centralized and those that are not are backed by centralized asset. Usdt is the biggest stable coin and in spite of all the controversies surround it, it has done pretty well in the recent years. The aim of any stable is to serve as hedge against volatility of cryptocurrency. I believe bitcoin and other decentralized coin should be held instead of stable coin for long term!

[Refrumatrix]

Usdt is big despite been centralised it leads over every other stable coins in crypto space I wouldn't worry too much if I were you, if your fund is too big split them into two or three and store them using three different usdt wallet address

[The Cryptovator]

Why are you even wondering to hold a stable coin? Doesn't matter it's USDT or whatever. Holding USDT and keeping money in the bank is the same. Both are centralized. USDT is a controversial currency that isn't transparent about backed assets. So there would happen any problem at any time. If you strongly want to hold a stable coin you may hold DAI. They can't prevent you from using that anyway. But I am not a fan of holding the stable coin at all.

[isaac_clarke22]

Back in the days, I was thinking of holding some of my money to USDT before I attempt to buy my first Bitcoin. Turns out it is indeed a bad idea.
You should check out this thread, OP - https://bitcointalk.org/index.php?topic=5204055.0
DAI is being suggested to be hold instead of Tether.

[_act_]

It's common knowledge now that USDT is centralized. Worth holding? No. I only use it for short them trades. Fiat is no better but I would rather have it because I'd be dealing directly with my local bank than some private company (Tether) registered in another country

Fiat is better, not that you are only dealing with your bank, you are also dealing with your central bank of your country, unlike tether.

As a normal user, I don't expect your account to be frozen, but they can.

I am thinking of a way I am using a private key wallet but unknowingly make a deal with a scam that just sent USDT to me in a way tether company will see me who is innocent as the criminal and freeze my coin.

- USDC: It is centralized but better than Tether and is well listed in many exchanges.
 - DAI: Central currency but cannot be frozen and listed in some exchanges.
 - BUSD: many be better than Tether ?!

I will prefer to hold Dai with the good research I have done about the coin. I do not know why I still see BUSD suspicious but I may not be right.

[pealr12]

I have noticed USDT to be the dominant coin on exchanges and this help in having the highest marketcap of all the whole existing stable coins. I am thinking may be because tether is centralized has been the reason centralized exchanges have liked it because they are centralized too. Check this out, it is about a recent USDT that has been frozen by Tether company.

Tether freezes $150 million in USDT
https://shibastore.co/tether-freezes-150-million-in-usdt/

I am afraid one day tether is going to freeze my coin or anybody's coin, the reason the coin that was frozen this year was frozen has not be known but may be it is a good reason, but I am thinking not to use USDT ever again because it is centralized.

What do you think about tether company having the power or ability to freeze any USDT of their choice. Is it a good idea?

Those accounts were freeze because the authority authorised them to do so, it is centralized and may not be very ideal to hold funds for long term, there is no need to be afraid,  good thing there are more decentralized options out there, better to use other decentralized stablecoins put there instead

[Coyster]

Basically, the main purpose of hodling a coin is to make profit/ROI, except of course if you want to use the coin as a currency, and at the moment, Bitcoin is more or less the only digital coin whose demand as a currency continues to grow fast and is definitely headed for mainstream usage. Having said that, as far as Tether is concerned, there are a few other things to use it for than to consider hodling, I wouldn't hold it for no reason, as a matter of fact, I wouldn't hold a lot of coins, I keep it at Bitcoin and a few other projects that look bright and sustainable for the long period.

[magneto]

I think that it's all about Risk-Reward.

The deposit rates on Tether offered by major DeFi protocols may make it attractive to hold Tether in the short run, for instance I know plenty of pools offering 20%+ APR on Tether pairs.

But if you are merely holding it as a "savings account", you are doing it wrong. Not only does Tether not pay out any interest, they have fractional reserve issues, and obviously they are incredibly centralized and may make very arbitrary decisions regarding their tokens.

[magneto]

I don't think it's a problem, stable coins are more suitable for centralization so that whoever holds them never worries about losing money due to various reasons and problems with decentralization, in fact I prefer centralization so that anyone doesn't worry about transferring money to stable coins.

That's false.

As a stablecoin holder, you definitely need to be cognizant of the risks associated with a centralized reserve regime. Otherwise you are not only lending out your fiat for free to the provider, and taking on all the default risk of the stablecoin provider.

Tether is very risky to hold for the long run, and I would not hold it as I said unless I get some great APRs for doing so on some DeFi farming strategy. There is no point denying that.