Tether Seems like Sound money

[Mansory22022]

They buy btc to back up their currency USDT so that's what the money should be backed by btc. The digital gold.
Think about the fiat currencies every dollar bill in your pocket are debt the USDT seems much more reliable then fiat, USDT can and it should decouple of dollar If the dollar value don't go up.
Me and many others like to see one day USDT paper currency also. I rather hold new dollar (USDT) Then just the current dollar wich is debt structured.
The path to financial freedom comes first we need to get rid of the debt based economy so the real way Will be USDT backed by digital gold the btc and other digital currencies.
Goverments also can function better If they buy btc and whatever budget they need , for example to fix health care or to build up something then they might sell some part of their btc to get USDT instead of using debt and making inflation high they can use sound financial system.
So instead of taking the loan goverment can buy dca way BTC with tax payers money and If btc price goes up they can sell and with that funds they can a lot good things in society.
I don't know about USDC but USDT financial structure looking more solid.
USDT is best money out there right now because they backing up with btc reserves.
That's what the btc should be all about backing up the currency value for currency issuer.

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[Husires]

If the dollar is debt structured, then USDT is tied to the value of one dollar, but in reality it is tied to promises and there is not even 1% of the reserves from net deposits. USDT is very bad and you should not consider it as a long-term investment. If you want to invest in a stable currency, there are better projects than PYUSD USDC DAI.

[electronicash]

If the dollar is debt structured, then USDT is tied to the value of one dollar, but in reality it is tied to promises and there is not even 1% of the reserves from net deposits. USDT is very bad and you should not consider it as a long-term investment. If you want to invest in a stable currency, there are better projects than PYUSD USDC DAI.

aren't they all the same?
there were several reports about USDT being frozen so that's another issue but same with all these stablecoins, they can also be frozen. there is trust for the DAI to be decentralized though.

there is just convenience in using the stablecoins in trading that's why we are all relying on this and not BTC/Altcoin which makes sense for most of us to be using stablecoin. but if the hyperinflation scenario however is to be considered, I wouldn't put all my eggs in one basket.

[pooya87]

You've missed the point for USDT existing.

Tether or USDT is a tool, something that is created to satisfy a need. That is the need for something that has a stable value (as compared to cryptocurrencies otherwise there is nothing stable) that crypto traders can use to store their capital whenever they want to exit the market or something to use to quickly and cheaply transfer funds between exchanges.

Tether is just filling a gap. It is not supposed to and it can not ever be money. There are a couple of fundamental flaws that prevents it from becoming money. (1) it has no cap meaning it can never be store of value due to its inflation (2) it is pegged to a fiat that also has no limit and has inflation.

It also can not be pegged to bitcoin because it loses its whole purpose! In other words as long as bitcoin itself exists, you don't need something that is pegged to it 1:1 and has the same value. It would make no sense.

[Hispo]

If the dollar is debt structured, then USDT is tied to the value of one dollar, but in reality it is tied to promises and there is not even 1% of the reserves from net deposits. USDT is very bad and you should not consider it as a long-term investment. If you want to invest in a stable currency, there are better projects than PYUSD USDC DAI.

I personally like DAI, the way it uses Ethereum to over-collaterize their decentralized reserves and keep their peg without having to rely on the holding of FIAT or FIAt equivalents like Tether and USDC do.
I would personally use DAI more often, but the fees within the Ethereum Network does not allow someone like me to easily interact with smart contracts and send smalls amounts of money without having to pay for significant percentages of such value.

I have also taken a look at USDC, in comparison to Tether,.USDC seems to have more trust or seriousness on its backing and it is less exposed to lacks of liquidity. Which one is the best, mostly depends whom one asks, I guess.

I would not personally consider Tether to be some kinds of investment or store of value in the long term whatsoever.

[virasog]

If the dollar is debt structured, then USDT is tied to the value of one dollar, but in reality it is tied to promises and there is not even 1% of the reserves from net deposits. USDT is very bad and you should not consider it as a long-term investment. If you want to invest in a stable currency, there are better projects than PYUSD USDC DAI.

Even the alternatives of USDT are not so reliable and we can trust on none of them for the long term. If I were to store my USDT at present i would still prefer USDT because the majority of the people trust it and the proof is that it has a market cap of over $100,000,000,000 and it is at number 3 in the coinmarketcap.   

After the Terra Luna crash, I do not trust the algorithmic stablecoins so putting everything in DAI is not a wise decision too. I think it is better to store your money in USD and not in the Crypto Stablecoins until there is some trusted better solution for a stablecoin. As a precaution, you can diversify your portfolio into different stable coins and not just in one stable coin.

[Upgrade00]

The path to financial freedom comes first we need to get rid of the debt based economy so the real way Will be USDT backed by digital gold the btc and other digital currencies.

USDT cannot be backed by Bitcoin or it losses the status of being a stable coin. It will also be unnecessary to use a coin which is backed by Bitcoin when you can simply buy Bitcoin.

As it is, Bitcoin cannot effectively replace fiat globally just yet and any country who wants to adopt it will be using it as an alternative currency and not the staple one.

USDT is best money out there right now because they backing up with btc reserves.

You can't at any point in time vouch for the status of the reserves, it's mostly a game of trusting a centralized system.

[JollyGood]

First the title with the obvious (some might say deliberate) grammatical error caught my eye. Then, after reading the OP I tried hard to understand it but failed. Even when I single out just a couple of sentences from the wall of text, I was unable to decipher it. One thing I understood is what I will comment on and this is USDT is not the best money/crypto/stable coin out there.

What on earth does this statement from you mean: "[USDT is best money out there right now because they backing up with btc reserves"

And what do you mean by this: "That's what the btc should be all about backing up the currency value for currency issuer."

USDT is best money out there right now because they backing up with btc reserves.
That's what the btc should be all about backing up the currency value for currency issuer.

[o48o]

They buy btc to back up their currency USDT so that's what the money should be backed by btc. The digital gold.
Think about the fiat currencies every dollar bill in your pocket are debt the USDT seems much more reliable then fiat, USDT can and it should decouple of dollar If the dollar value don't go up.
Me and many others like to see one day USDT paper currency also. I rather hold new dollar (USDT) Then just the current dollar wich is debt structured.
The path to financial freedom comes first we need to get rid of the debt based economy so the real way Will be USDT backed by digital gold the btc and other digital currencies.
Goverments also can function better If they buy btc and whatever budget they need , for example to fix health care or to build up something then they might sell some part of their btc to get USDT instead of using debt and making inflation high they can use sound financial system.
So instead of taking the loan goverment can buy dca way BTC with tax payers money and If btc price goes up they can sell and with that funds they can a lot good things in society.
I don't know about USDC but USDT financial structure looking more solid.
USDT is best money out there right now because they backing up with btc reserves.
That's what the btc should be all about backing up the currency value for currency issuer.

Are you trolling? In what way is pegged dollar better than actual dollar? It's literally just fiat money as synthetic asset. And usdt paper currency? What are you even talking about? If USD some day would crash, what value do you think usdt would have? Why would it matter if they can back that ustd value when all you are holding is usd value. Unless there is a tether bank run and they run out of that usd, so usdt would be worth even less then usd.

And democratic nation investing into most dangerous markets out there? How responsible will that look if btc crashes to ground? They are budjeting money that people's life is depending on. "Don't invest more then you can lose" is and advice most people give as an advice for noobs. Why would that not apply to any governments. Or is there a secret part of that budget that's for basically gambling? Who gave that a go ahead?

[MusaMohamed]

You've missed the point for USDT existing.

Tether or USDT is a tool, something that is created to satisfy a need. That is the need for something that has a stable value (as compared to cryptocurrencies otherwise there is nothing stable) that crypto traders can use to store their capital whenever they want to exit the market or something to use to quickly and cheaply transfer funds between exchanges.

Tether is just filling a gap. It is not supposed to and it can not ever be money. There are a couple of fundamental flaws that prevents it from becoming money. (1) it has no cap meaning it can never be store of value due to its inflation (2) it is pegged to a fiat that also has no limit and has inflation.

It also can not be pegged to bitcoin because it loses its whole purpose! In other words as long as bitcoin itself exists, you don't need something that is pegged to it 1:1 and has the same value. It would make no sense.

Tether USDT is a stable coin, in cryptocurrency and use blockchain technology but it is another existent type of fiat currency. Like CBDC, if deployed by government and central bank, will be another existent type of fiat currency but they are all similar in no caps, inflationary scheme and can not be an investment choice.

Store of value can be temporarily but in long term and even short term like some months after pandemic, fiat currencies can lose their purchasing power a lot.

Tether is more risky than fiat currency, as it can depeg. It can be seized in your Tether wallet address but if you have fiat currency, in cash, no one can seize it except if they arrest you.

PSA: Most Stablecoins Can Be Frozen, Even in Your Own Wallets
Stablecoins: A Deep Dive into Valuation and Depegging

[m2017]

They buy btc to back up their currency USDT so that's what the money should be backed by btc. The digital gold.

What will the bitcoin be backed with? Well, except for faith in future growth.

Think about the fiat currencies every dollar bill in your pocket are debt

But this “debt” is 100% anonymous, allowing you to track the movements of your funds.

the USDT seems much more reliable then fiat

But for me, it’s just the opposite. So what is the reliability of USDT? Fiat is at least backed by the state's economy.

Me and many others like to see one day USDT paper currency also.

Paper currency? Are you seriously? The whole world is slowly moving towards getting rid of paper money, and are you dreaming of USDT paper currency? Your dreams are unrealistic.

The path to financial freedom comes first we need to get rid of the debt based economy so the real way Will be USDT backed by digital gold the btc and other digital currencies.
Goverments also can function better If they buy btc and whatever budget they need , for example to fix health care or to build up something then they might sell some part of their btc to get USDT instead of using debt and making inflation high they can use sound financial system.
So instead of taking the loan goverment can buy dca way BTC with tax payers money and If btc price goes up they can sell and with that funds they can a lot good things in society.

It seems to me that you have absolutely no idea about the functioning of the economy.

I don't know about USDC but USDT financial structure looking more solid.

To me, none of USD's (USDC, USDT, USDshit and so on) financial structures look solid.

USDT is best money out there right now because they backing up with btc reserves.
That's what the btc should be all about backing up the currency value for currency issuer.

Money backed by other money? You haven't forgotten that bitcoin is already money (A Peer-to-Peer Electronic Cash System).

[jaberwock]

--snip

I agree, we are talking about a currency that is "owned" by a company, the moment the government says "shut down your operations" they are fully gone. So why would I trust all of my money (100+ billion by people nowadays) to a company that can be closed over a single night? It's literally the situation they are in right now and there is nothing that we can do about it. We should realize that this isn't acceptable level of security risk we would take.

I have owned it before, but not for long, just for transactions, and for short period of time, I never held it more than 3 months I think, not sure but it's probably around that much time at most. I do not like to keep it, and try to put it all on bitcoin whenever I can, or altcoins.

[God bless u]

I think that's a very good approach to get out of the well that is being dug on the basis of economical stability. Everyone should get financial freedom and that's a very good approach to get that.
But the reality is that the powers that are holdings and controlling this world will never let that happen. Power is something that is more addictive than drugs so parties that control most of the things going out here in this world through their diplomacy and wealth will never want someone to get the financial freedom. It's a sad reality but you know we need to work on it. We need to give people more clarity about it and once people will be aware of their rights than it could have a greater impact. There is also some issue in USDT as you maybe aware that USDT could be stucked in your decentralized wallet as usdt owners have full control over it

[Sophokles]

The bigger the theater gets, the more concerning it becomes. So much influence over the whole stablecoin category can be catastrophic for the whole industry if something bad happens with it. In case if there is any news about any government crackdown or sanction that can harm the project or the whole market due to USDT dominance over the altcoin market. It would be better if USDT, USDC, DAI and a few other stablecoins shared a similar dominance over the market. This would be good for the overall market in the long run.

[Mansory22022]

You've missed the point for USDT existing.

Tether or USDT is a tool, something that is created to satisfy a need. That is the need for something that has a stable value (as compared to cryptocurrencies otherwise there is nothing stable) that crypto traders can use to store their capital whenever they want to exit the market or something to use to quickly and cheaply transfer funds between exchanges.

Tether is just filling a gap. It is not supposed to and it can not ever be money. There are a couple of fundamental flaws that prevents it from becoming money. (1) it has no cap meaning it can never be store of value due to its inflation (2) it is pegged to a fiat that also has no limit and has inflation.

It also can not be pegged to bitcoin because it loses its whole purpose! In other words as long as bitcoin itself exists, you don't need something that is pegged to it 1:1 and has the same value. It would make no sense.

That's why they push now the stablecoins regulations and that's good thing when stablecoin holders will be protected it's still wild west but slowly btc start backing the stablecoins USDT first then USDC, i know USDC are more solid stablecoin but USDT have very good structure and trusted many traders including me.

Anyone who say we can not trust USDT or USDC...i would say it's a end of the crypto then, but Im happy that instutions and goverments working together to get off the debt economy into cryptocurrency backed currency like USDT , USDC.

Everything going good way stablecoins are future btc can't be money never but let's not forget the btc purpose to be digital gold and why you need digital gold? You need it to back up currency at least some fractions with btc.

Not long to wait those days when finally fdci and FCA UK Will protect stablecoins owners when rates Will be even higher than now and good yield of USDT,USDC holding on bank wallet or exchangers.

[DeathAngel]

USDT has large reserves & has many years of trust earned. I trust it enough to leave a moderate amount of money parked on an exchange with limit buy orders set to buy crypto with but like anything, don’t leave more than you can afford to lose on any third party exchange. I trust USDT more than most crypto.

[420 Seeds]

USDT has many years of avoiding a full audit to prove real reserve levels. This thread is full of misguided and ill-informed ideas, and/or shills looking for suckers to believe them. Don't let them get your money, USDT can be 100% avoided with several alternatives available.

[terrific]

USDT is best money out there right now because they backing up with btc reserves.

Tether is used to buy more Bitcoin but if it's about btc reserves, no they don't because it is said that they're being backed by real USD in value.
Well, being a stable coin no doubt that many are using them but remember the USTC and Luna debacle? It's the same reasoning you are telling but they did it in actual until they've collapsed.

[Coyster]

OP, i don't think you understand what USDT is and how it works, it is the same as the dollar because it is backed by it, but it is better you hodl the dollar because you cannot be sure of any USDT you have in your wallet, some of them are definitely not backed by anything but thin air. Having said that, another reason you should hold the dollar is that whatever you have of it in your bank account is insured up to a certain amount, but if something goes wrong for the issuers of USDT, you lose all your money; not to mention they can freeze your coins, lose their peg, and let's just leave it there, but you should know the better option now!

[Zaguru12]

USDT has large reserves & has many years of trust earned. I trust it enough to leave a moderate amount of money parked on an exchange with limit buy orders set to buy crypto with but like anything, don’t leave more than you can afford to lose on any third party exchange. I trust USDT more than most crypto.

The thing is many have actually tagged it as a save heaven for their savings but just as others have said it is firstly not entirely pegged to the which makes it a bit baseless and if then it is, with the kind of economical challenges facing the dollar one should be rest assured that the USDT faces such risk also. Should the fiat dollar suffers inflation then so as the USDT. Holding it is just as holding the fiat just that it’s not in the bank.

You can actually not leave it on exchange but rather have it on your wallet, the problem will just be pegging it with another blockchain. For a long term hodl I will still go for bitcoin as a something that is an hedge against inflation