reasons why someone wants to pay in tether and not bitcoin?

[sima_sara]

What could be the reason for someone wanting to pay in Tether and not bitcoin? 

my understanding is that using bitcoin, you will not have to worry about your crypto being frozen.   

Could there be any reason for tether being advantageous in such transaction?

[Pmalek]

The person only has tether and not bitcoin could be one reason.
Maybe they are worried about short-term volatility if they are the ones receiving the coins. Bitcoin was worth $23.000/coin two days ago, but now it's only worth $21.000/coin. That's how a volatile asset behaves. Anyone who received BTC at $23k a few days ago have a 8-9% worse purchasing power right now. At the same time, USDT and USD hasn't changed much.

It is true that all centralized stablecoins can be frozen by their issuers no matter what address and wallet they are in. However, that doesn't happen to me and you. I have never heard a story of a guy getting his $200 USDT locked by Tether. It happened recently to addresses connected to the FTX scam exchange, and I am not going to shed one tear for them. I don't think normal holders need to worry about having their stablecoins frozen. Still, it's good to know that option exists. 

[dbshck]

The main reason is value stability as Tether is pegged to USD. Bitcoin, on the other hand, can be very volatile even in short period of time. Some people, especially businesses, prefer that stability over the risk of funds being frozen.

[bitmover]

The person only has tether and not bitcoin could be one reason.

I have a similar situation.

During last bull market  I sold some ethereum in a Defi, and traded them for stablecoins. I used defi for privacy reasons.

Now I have some stablecoins and from time to time I like to sell some.

Usually I prefer bitcoin payments, but it might be handy to pay using stablecoins in my situation

[Peanutswar]

It depends on the coin they have if you are using the tether most likely the fees are around ~5$ if they ignore the fee its more convenient to them than making another trade into bitcoin which consumes two times for the fees. So it depends on the user's preferences.  Today due to the low transaction fee of the bitcoin this is most likely what they are using nowadays.

Binance rate

Code:

mempool.space

[cryptoaddictchie]

What could be the reason for someone wanting to pay in Tether and not bitcoin? 

my understanding is that using bitcoin, you will not have to worry about your crypto being frozen.   

Could there be any reason for tether being advantageous in such transaction?

Possibly he is worried tha volatility of the bitcoin. Example his buying a property and if he bought it using it, possibly the value would decrease, and if you bought it using tether, its still the same with the curtent value, yes thats normal and it can be considered like normal. Thats what usually the observation of some wishes to use a fixed value in currency than volatile asset.

[Pmalek]

It depends on the coin they have if you are using the tether most likely the fees are around ~5$...

Those $5 or a bit less is not the network transaction fees. It's the withdrawal fee you pay to Binance, in this example, for the luxury of them sending the coins to the address you want. Half of it (or even less) is what Binance pays in transaction fees. The rest is their profit.

For example, take the Tron variant. With the most recent Tron governance update, you now pay approximately $1.20 to $1.40 (equivalent in TRX) in network fees if you don't have enough Energy in your account. The beautiful people from Binance charge you $2.60 for the same action. 

[julerz12]

What could be the reason for someone wanting to pay in Tether and not bitcoin? 

my understanding is that using bitcoin, you will not have to worry about your crypto being frozen.   

Could there be any reason for tether being advantageous in such transaction?

Price stability, at least that's what Tether promises. You pay/receive $100 in USDT, that would stay $100 for all eternity.
Unlike paying someone with $100 worth of BTC, if the price of BTC skyrockets, you'd regret letting go of that $100 worth of BTC that could've been now $200 worth.
And if you're on the receiving end, if BTC price goes down, your $100 worth of BTC might tank to just $50 worth. Though none of this would matter if you're a Bitcoin maximalist.

[Doan9269]

What could be the reason for someone wanting to pay in Tether and not bitcoin? 

my understanding is that using bitcoin, you will not have to worry about your crypto being frozen.   

Could there be any reason for tether being advantageous in such transaction?

Why should your fund got frozen with making payments in bitcoin when you're not sending on a wrong adreess or double spending, the only reason i cannsee to having this kind of preference for tether instead of bitcoin is when what you have is tether and you wouldn't want to have a drop in your balance to affect the rate you're sending due to transaction charges, so most people only prefer one coin against the other because of their charges fee when sending or converting them.

[tranthidung]

Those $5 or a bit less is not the network transaction fees. It's the withdrawal fee you pay to Binance, in this example, for the luxury of them sending the coins to the address you want. Half of it (or even less) is what Binance pays in transaction fees. The rest is their profit.

For example, take the Tron variant. With the most recent Tron governance update, you now pay approximately $1.20 to $1.40 (equivalent in TRX) in network fees if you don't have enough Energy in your account. The beautiful people from Binance charge you $2.60 for the same action. 

Binance and other centralized exchanges always do batch payments for their user withdrawals but they always charge same separated withdrawal fee on every user. By that I mean centralized exchanges earn a lot from processing withdrawals for their customers.

• Old story. Exchanges get profits from users' withdrawal fees.

I see it unfair because I consider they already charge fees on tradings (taker, maker fees) and it does not makes sense to charge withdrawal fees because they need to secure their wallets (hot and cold), security, staffs, tools for those things. If they have a business, build an exchange, people join to use their service and pay fees for the service. Double charging many types of fee is unfair for customers.

[Pmalek]

And if you're on the receiving end, if BTC price goes down, your $100 worth of BTC might tank to just $50 worth.

I don't disagree, but if you think like that, you will always find reasons why not to spend your bitcoins. The price is too low now, and I am sure it will be $30k soon. When it's $30k, it's still too low because it might go to $100k. I can keep going. 

Why should your fund got frozen with making payments in bitcoin...

That's not what OP said. Take another closer look:

my understanding is that using bitcoin, you will not have to worry about your crypto being frozen.

OP is asking why someone would use tether (a centralized asset that can be frozen on any address) when they can use bitcoin which is censorship-resistant on a protocol level.

[KingsDen]

What could be the reason for someone wanting to pay in Tether and not bitcoin? 

my understanding is that using bitcoin, you will not have to worry about your crypto being frozen.   

Could there be any reason for tether being advantageous in such transaction?

Whether you have tether or Bitcoin your assets can still be frozen especially when you save your coins on exchnages.
Speaking about the volatility of bitcoin, that is why people love to transact in tether and other stable coins than btc.
When btc slumps, it will still rise in the future, but as a business man, you may be on the negative lane when the money is needed by you and you will have any other choice than to sell at loss.

[hatshepsut93]

Compared to banks USDT has lower chance of getting frozen, and you can send transactions to anywhere in the world relatively quick. The fees may be lower compared to banks, may be higher in the case of Ethereum which tends to have fee spikes.

So you could say that USDT is a middleground between Bitcoin and banks. You have more control and more freedom but not full freedom.

[nakamura12]

What could be the reason for someone wanting to pay in Tether and not bitcoin? 

my understanding is that using bitcoin, you will not have to worry about your crypto being frozen.   

Could there be any reason for tether being advantageous in such transaction?

It's only natural to send tether when that's what you only have. It is not possible to send Bitcoin when you don't have any Bitcoin at all. Bitcoin is indeed decentralized which means no person behind Bitcoin that is running and every person who runs a node will be a server if that's easy enough for you to understand. Let's say, I want to pay you tether but I don't have tether so I will pay using Bitcoin. The only thing that can frozen your Bitcoin funds is when you store it in a platform that is not decentralized like an exchange site.

[Ojima-ojo]

What could be the reason for someone wanting to pay in Tether and not bitcoin? 

my understanding is that using bitcoin, you will not have to worry about your crypto being frozen.   

Could there be any reason for tether being advantageous in such transaction?

Tether is a centralized stablecoin and has low fees and faster transactionon time, aside from this feature I don't think there is any other reasonable reason why merchants will prefer tether to other coins.

But what about the banking systems with haven't

[Saint-loup]

It depends on the coin they have if you are using the tether most likely the fees are around ~5$ if they ignore the fee its more convenient to them than making another trade into bitcoin which consumes two times for the fees. So it depends on the user's preferences.  Today due to the low transaction fee of the bitcoin this is most likely what they are using nowadays.

Binance rate

Code:

mempool.space

No you're wrong the $5 fee is only required if you are using the Ethereum network(USDT ERC20) or if you are using a dishonest exchange/platform charging high withdrawal fees but now most of platforms allow deposits from another network at least. Mostly Tron network(USDT TRC20) actually, so usually fees are the same as a Bitcoin transaction on average. Thus it's not anymore too much expensive to use Tether instead of Bitcoin.

[drwhobox]

There can be many reasons for that person not to pay you with bitcoin, or he doesn't have bitcoin to pay you.
Also maybe he doesn't want to pay you with bitcoin because the price is moving up and down too fast. So choosing a stable coin he thinks might be good for both of you.

[Pmalek]

Mostly Tron network(USDT TRC20) actually, so usually fees are the same as a Bitcoin transaction on average. Thus it's not anymore too much expensive to use Tether instead of Bitcoin.

Check my previous reply regarding the network prices. If you spend one native segwit UTXO and transfer your coins to another native segwit address at a time when the mempools are practically empty, you can get a quick confirmation for $0.05 or a bit more.

You can't move USDT over Tron at those prices. You need 25-30 TRX, on average, for transaction fees. That's over $1.50 and closer to $2. More complex smart contract interactions cost up to 50 TRX in fees.

[Saint-loup]

Mostly Tron network(USDT TRC20) actually, so usually fees are the same as a Bitcoin transaction on average. Thus it's not anymore too much expensive to use Tether instead of Bitcoin.

Check my previous reply regarding the network prices. If you spend one native segwit UTXO and transfer your coins to another native segwit address at a time when the mempools are practically empty, you can get a quick confirmation for $0.05 or a bit more.

You can't move USDT over Tron at those prices. You need 25-30 TRX, on average, for transaction fees. That's over $1.50 and closer to $2. More complex smart contract interactions cost up to 50 TRX in fees.

If you are not aware of that, Bitcoin mempool is no longer empty since Ordinals are congesting low mining fee transactions, and the mempool will certainly not be empty anymore unless Ordinals die unfortunately. https://jochen-hoenicke.de/queue/#BTC,4d,weight

Last time I sent USDTs on Tron blockchain it was 10 days ago with Trust Wallet, and I've paid 26.3TRX/$1.68 according to Trust Wallet.
Currently from what I see on a Tron blockchain explorer it still costs 26 TRX on average to send USDT TRC20 while TRX costs $0.065 today. So it costs $1.7 on average at the current price to send them, it's certainly lower than the price you would need to pay to send a Bitcoin transaction on chain at the same speed today, that is to say a tx to be mined into the very next block.
https://tronscan.org/#/token20/TR7NHqjeKQxGTCi8q8ZY4pL8otSzgjLj6t

[Smartvirus]

What could be the reason for someone wanting to pay in Tether and not bitcoin? 

my understanding is that using bitcoin, you will not have to worry about your crypto being frozen.   

Could there be any reason for tether being advantageous in such transaction?

Not having to worry about your bitcoin being frozen, a frozen account on a centralised exchanges as is tradition or customary to centralised systems while carrying out some sort of investigation is actually your whole coins be it bitcoin and what have you has been successfully frozen. Issuers are one thin and an advantage for bitcoin especially when having it deposited in a wallet.

One of the main reason why I feel has been the reason why people prefer being paid in Tether stablecoins and some other altcoins of value out there is the issue of fee and the time it takes to process. Same reason why some projects gets to anchor on all these other new blockchains.