What happens if USDT falls down?

[Princess_Devi]

We know that USDT is coming back from the most horrific situations from the past. But I want you to answer this, what do you do if someday without any signs USDT falls back to 0.1-0.2$? What do you do? Can you survive in this situation? What do you do if you put all your assets in USDT?

Just curious to know your answer. Don't say reasons that it won't happens, because I want to know if something this kind of thing happens in future what will you do?

If you ask my replay to this, I can say I will ok with it. Because I put my 20% into USDT right now. Why? because you know guys there is an Old saying Never put your all eggs in the same basket. 

[Coyster]

What do you do if you put all your assets in USDT?

The thing is, one shouldn't put all of their assets in USDT, it might be called a stable coin but it can be depegged and people hodling it will lose all of their money. USDT should held for only for a short time and afterwards it is much safer to either liquidate it to fiat or convert it to cryptocurrency that you have some control over, like Bitcoin.

Don't say reasons that it won't happens, because I want to know if something this kind of thing happens in future what will you do?

Of course it is something that can happen, other stable coins have been depegged in the past, and it can definitely happen to USDT in the future. As for what i'd do, i don't hodl USDT like i said already and i don't think it is safe for one to hodl it for too long.

[decodx]

If you ask my replay to this, I can say I will ok with it. Because I put my 20% into USDT right now. Why? because you know guys there is an Old saying Never put your all eggs in the same basket. 

For me, USD serves as a transitional currency between fiat money and cryptocurrencies. I really don't see any compelling reason to hold a significant part of my portfolio in USDT or any other so-called stablecoin. Wouldn't fiat be a safer option in that case?

[goaldigger]

These are the things that we cannot control and the only way to survive is to deal with it. Diversification is indeed a key for you to be more safe but if USDT will reach that level again, I’m sure there will be panic and the market will go down again since USDT seems to be the basis of many. The market is unpredictable, you can also include the pressure from the government so if this will happen, just be ready for it.

[Jating]

We know that USDT is coming back from the most horrific situations from the past. But I want you to answer this, what do you do if someday without any signs USDT falls back to 0.1-0.2$? What do you do? Can you survive in this situation? What do you do if you put all your assets in USDT?

Just curious to know your answer. Don't say reasons that it won't happens, because I want to know if something this kind of thing happens in future what will you do?

Of course it will put a dent on the market, as we all know stable coins are pegged 1:1 and we used it as hedge when the price is going down. And if the price of USDT is not pegged then it's going to be a concern for us as it will be very negative for investors. Not saying that the market will collapse, but there is a huge repercussions.

If you ask my replay to this, I can say I will ok with it. Because I put my 20% into USDT right now. Why? because you know guys there is an Old saying Never put your all eggs in the same basket. 

So are you ok losing value when it goes like 1 USDT to .098$?

Obviously, your 20% is going down in value as well. And one more thing, USDT is not crypto that is used for investment, so your saying is not applicable here.

[JeromeTash]

One thing I know is crypto market won't stay down forever. I know Bitcoin price will drop alongside many other alternative currencies, but it will rise back up again. Most of my holdings are in Bitcoin are not USDT

I only have USDT in my derivatives trading account. Probably around only 10%. So I believe I will survive that catastrophe.

[o48o]

We know that USDT is coming back from the most horrific situations from the past. But I want you to answer this, what do you do if someday without any signs USDT falls back to 0.1-0.2$? What do you do? Can you survive in this situation? What do you do if you put all your assets in USDT?

Just curious to know your answer. Don't say reasons that it won't happens, because I want to know if something this kind of thing happens in future what will you do?

If you ask my replay to this, I can say I will ok with it. Because I put my 20% into USDT right now. Why? because you know guys there is an Old saying Never put your all eggs in the same basket. 

Funny thing is that those USDT:s would probably be in a safer position then your other cryptos. As if USDT falls, everything falls like a rock. Bitcoin might be only coin that doesn't care that much, but everything else would be a in pure chaos.

You would eventually get paid for your USDT:s because law would be on your side, but everything else you had would be dropping like flies in the charts, and i doubt we would see new bull run in a long time.

Could i survive it? At the moment yes as i don't have that much in cryptos anyway. But i doubt that whole cryptocurrency scene would do that well as this would be worst thing to overall trust that's ever happened.

[albon]

We know that USDT is coming back from the most horrific situations from the past. But I want you to answer this, what do you do if someday without any signs USDT falls back to 0.1-0.2$? What do you do? Can you survive in this situation? What do you do if you put all your assets in USDT?
Just curious to know your answer. Don't say reasons that it won't happens, because I want to know if something this kind of thing happens in future what will you do?

I can't do anything except for the Tether team to return the price of USDT to 1 dollar again through the reserves they have, USDT has been depegged many times in the past, and its price fell from the price of 1:1, but this did not continue, and the price of USDT returned again. if this happens again in the future, all I will do is wait patiently. It is a big mistake to rush and sell what I have in USDT at the time of the catastrophe of the price collapse and the dollar depeg.

If you ask my replay to this, I can say I will ok with it. Because I put my 20% into USDT right now. Why? because you know guys there is an Old saying Never put your all eggs in the same basket. 

Frankly, I agree entirely with you. Diversifying stable coins is an excellent decision. It is worth mentioning that CZ Binance resembles Tether as a black box due to the risks that arise around it, that it lacks transparency because an audit report has not been submitted about it yet, and that his team is in the process of establishing an algorithmic stablecoin and supports more new stablecoins to determine what will survive organizational matters.

[nelson4lov]

We know that USDT is coming back from the most horrific situations from the past. But I want you to answer this, what do you do if someday without any signs USDT falls back to 0.1-0.2$? What do you do? Can you survive in this situation? What do you do if you put all your assets in USDT?

Just curious to know your answer. Don't say reasons that it won't happens, because I want to know if something this kind of thing happens in future what will you do?

If you ask my replay to this, I can say I will ok with it. Because I put my 20% into USDT right now. Why? because you know guys there is an Old saying Never put your all eggs in the same basket. 

.

I have experienced this before with UST when the Terra Luna crash happened. I had some UST deposited into anchor protocol from the juicy rewards but I couldn't sell immediately because there was an unstaking period so I ended up losing money from a token that was supposed to be stable at all time. I learnt my lesson and let my greed take control. With USDT right now, I'm playing it more careful. It has to be a piece of everything at this point.

- USDT: Centralized and depegged a few times but always returned to peg. Sketchy team.

- USDC: Have had huge controversy this year and depegged a lot.
- DAI: Decentralized but DeFi is still riskkkyyy.

[EFS]

If USDT goes, another stablecoin will take its place. Stablecoins are something that is necessary in this market and there's already a big competition in this field. Whichever firm actually issues a 1:1 backed stablecoin and publishes it with live proof, they are more reliable. While stablecoins were just emerging, there were groups that wanted to take advantage of it, but people have become more cautious after recent scams.
Don't fully rely on stablecoins, but choose only the best when using them in times of need. I also hold some USDT but the amount is nothing in my whole portfolio.

[livingfree]

It has a huge share to the trades that are happening in the entire crypto market so one that will be affected is the price of Bitcoin.

Aside from that, I've seen some weak stable coins that have dropped down in value and they never recovered. Maybe for Tether if it will fall, the recovery will be different.

Who knows? But I am not curious to wait and see it happens because IMHO that it will create a domino impact to the market.

[wxa7115]

We know that USDT is coming back from the most horrific situations from the past. But I want you to answer this, what do you do if someday without any signs USDT falls back to 0.1-0.2$? What do you do? Can you survive in this situation? What do you do if you put all your assets in USDT?

Just curious to know your answer. Don't say reasons that it won't happens, because I want to know if something this kind of thing happens in future what will you do?

If you ask my replay to this, I can say I will ok with it. Because I put my 20% into USDT right now. Why? because you know guys there is an Old saying Never put your all eggs in the same basket. 

At that point whatever amount of money you invested in that coin will be lost for the most part and there is nothing you can do about it, USDT is the stable coin with the most volume and such a catastrophic fall will destroy all the confidence in it and it will affect the market of stable coins and the market in general as well.

So unless you were ready to sell all your coins and get fiat in return then you will suffer some losses, even if you did not held any USDT, now how likely is for that scenario to happen? No one knows, but I would not call it impossible as I think the governments are going to begin to attack stable coins with everything they have so they can try to force people to adopt CBDCs.

[Supianto]

Well, the market would crash and perhaps BTC would be really close to $10k after that. I find it interesting that you're investing in USDT. I mean, it's a stablecoin, you're not gonna get anything from it. But if you just want a part of your portfolio to be safe and stable that's fine. Everyone has different strategies and goals.

[nakamura12]

If the USDT falls down then there's nothing you can do because you can't control its price. If USDT falls then there will be another stable coin to take its place. As you can see, there are more than one stable coins and as of now, USDT is what people used when they want a coin that is stable for some reason. I don't think that USDT will fall or even the price decrease and there are lots of trades going on the market.

[jasonjm]

We know that USDT is coming back from the most horrific situations from the past. But I want you to answer this, what do you do if someday without any signs USDT falls back to 0.1-0.2$? What do you do? Can you survive in this situation? What do you do if you put all your assets in USDT?

Just curious to know your answer. Don't say reasons that it won't happens, because I want to know if something this kind of thing happens in future what will you do?

If you ask my replay to this, I can say I will ok with it. Because I put my 20% into USDT right now. Why? because you know guys there is an Old saying Never put your all eggs in the same basket. 

The situation will be much worse than UST (Terra USD). If you have savings in USDT, you should convert them to dollars (paper currency) or BTC for security. You should only have limited stock in USDT for trading purpose. Because if the de-pegging of USDT happened, it will create havoc in the market as it has a market cap of $84 Billion. 

[adaseb]

These days you don’t really have that many options. Besides keeping USD on your exchange which is real fiat and not a stable coin you are having to deal with counterparty risk.

So your options are USDT and USDC pretty much. Since DAI is mostly USDC and BUSD no longer mints and TUSD and the rest seem way too risky to use at the moment. So just split your stablecoins across Tether and USDC.

[Blitzboy]

USDT at 0.1-0.2$? That would be, like, a crazy thing to happen, right? But since you raised the question, here is my response: No way would I convert all my money into USDT. Thats just foolishness, and I prefer to avoid danger whenever possible.

Surviving that condition would be like finding a needle in a haystack without the haystack. Still, I'd be doing everything I could to keep my head above water, and I might even rethink my investment strategy and look into gold or vintage goods. Diversifying your portfolio at any time is always a good idea. You know the old adage: "Never put all your eggs in one basket." Just like you said, and I agree with you, 100% or maybe even 110%.

[d5000]

Funny thing is that those USDT:s would probably be in a safer position then your other cryptos. As if USDT falls, everything falls like a rock. Bitcoin might be only coin that doesn't care that much, but everything else would be a in pure chaos.

You would eventually get paid for your USDT:s because law would be on your side, but everything else you had would be dropping like flies in the charts, and i doubt we would see new bull run in a long time.

I disagree here. If USDT goes down to 0.20 or 0.10, then this means that there would be serious problems with that equation. If Tether goes bankrupt but investors really can expect to be paid out eventually, the peg would fail but most likely the dump would stop somewhere near 0.50 or even 0.70. People would prefer to wait 5 years and get full value, than to get less than 50% now.

Even as MtGox had terminally collapsed, the "MtGox coins" still were around 50% worth from the original value, as far as I remember -- because the investors knew that they could expect to get at least something back, and this happened finally.

Big altcoins, and of course Bitcoin -- like you already wrote -- should drop also in the case of an USDT catastrophic peg fail, but probably mid-term not more than 50%. A panic dump of 70% or so could happen, but would be recovering as a new leading stablecoin emerges.

But i doubt that whole cryptocurrency scene would do that well as this would be worst thing to overall trust that's ever happened.

It's likely that what you write won't be far from reality - I also expect a massive altcoin drop if USDT's peg fails catastrophically. But it would be somewhat paradoxical: Cryptocurrencies have been created to cut out all middlemen of finance. A centrally managed cryptocurrency would have collapsed, which means that there were some middlemen involved. Thus "middlemen" would have pulled down the "no-middlemen" finance concept ...

Due to this, I expect that Bitcoin would be strengthened mid/long term, but centrally managed cryptocurrencies and stablecoins would probably lose a lot of trust. I expect Bitcoin Dominance in this event to go again up to 70 or 80%.

[leonair]

We know that USDT is coming back from the most horrific situations from the past. But I want you to answer this, what do you do if someday without any signs USDT falls back to 0.1-0.2$? What do you do? Can you survive in this situation? What do you do if you put all your assets in USDT?

If USDT suddenly crashes like UST, it will have a huge effect on the market as USDT occupies a large part of the market. And many may suffer greatly.  USDT is trusted by many people and many hold huge money through usdt. If i say my personal thing i use usdt but don't hold all my money in usdt.  I hold about 2-5% of my total assets in crypto and  keep 25-30% of that in USDT from this budget  and rest is other coins.  So even if USDT crashes, I have no chance of major losses.

[I_RodimusPrime]

Yooooooo, this makes me scared and opens a new way to think. I thought it will be stable. I think I should also move some USDT to other assets or investments. Thanks for making this kind of post here. It's truly helpful for newbies like us