Explain to me how this isn't the biggest scam in crypto

>Tether (USDT) is pegged to the dollar. 1USDT = 1USD
>The company guarantees to always sell you a Tether for a dollar but their website states that they won't buy them back so there's a price ceiling of 1 dollar but no price floor
What happens when people lose confidence and stops buying it or everyone decides to sell more than the market can absorb? Am I missing something here? This seems like a giant ponzi scheme waiting to implode.

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This is exactly why I am scared shitless of USDT

It's not only based on "confidence". The company actually exchanges USDT for dollars in your bank account. People do arbitrage and that's why the USDT price is close to the real USD value.

>won't buy them back

What

Honestly I have no idea how people on this fucking board can hate on shit like litecoin and ethereum when tether is literally fucking retarded.

What the fuck is the purpose of something that -might- stay even with the value of a dollar, but is guaranteed to never rise above it, but potentially could drop beneath it?

JUST FUCKING SIT ON USD INSTEAD

TETHER IS FUCKING STUPID

if they won't buy them back how is it "pegged" to it?

From their website tether.to/legal/

"There is no contractual right or other right or legal claim against us to redeem or exchange your Tethers for money. We do not guarantee any right of redemption or exchange of Tethers by us for money. There is no guarantee against losses when you buy, trade, sell, or redeem Tethers."

Veeky Forums is full of brainlets who don't understand that if USDT wasn't backed by anything, it would get pumped and dumped like some crazy shitcoin. Because by its nature, USDT is not some special coin embedded by exchanges, it functions like an ordinary cryptocurrency, and its price is formed by buy and sell orders.

Veeky Forums is full of brainlets who don't understand that Tether could close up shop and not have to exchange anything for these shit coins

Sell on a fiat exchange where there is USD that is FDIC-insured, like Coinbase

>usdt becomes the certified cryptocurrency
>literally every other coin drops to 0 in value because theres no reason for them to exist
now im scared, it's literally the perfect cryptocurrency

If you're in crypto, you must be ready to take risks. Any major exchange might collapse tomorrow, or we might see a major, totally unseen crash, or some new draconian regulations pop up. Also, I'm not sure if Coinbase holds any obligation to non-American citizens.

You should realize that most exchanges hold no contractual right or legal claim to exchange your bitcoins for altcoins or guarantee their safety either. Yet they do it somehow.

ITT: People who are too fucking new to remember when tether was 90 cents each just a few months ago.

exchanges like bittrex don't support USD, they use USDT instead

Why the fuck would I want a crypto thats worth 1 decaying fiat currency? The idea is to upgrade to money not turn your inflated shitty dollar in to digital. I could just get a credit car for that.

Who the fuck would buy this shit other than 80 IQ niggers and roasties?

>Who the fuck would buy this shit other than 80 IQ niggers and roasties?

Those who do not want to convert back into FIAT and pay that hefty tax.

So you would put your money in to thether which would never gain value thus you get to avoid paying 35% tax on it and forgo the possible 65% profit you could have gotten.

All they are doing is created counterfeit money and selling it. These people have scammed hundreds of millions of dollars from people.

It's an incredible bubble that's going to burst once the first crypto-futures-contract-based pegged USD tokens hit the scene.

With tether, there is no guarantee you can unload the bag on someone else. With the token approach, you are always GUARANTEED to get $1 usd worth of crypto back.

With better alternatives, tether is going to explode and people will wonder why we ever used it at all.

This.
Tether is a scam inside the bigger scam of letting shady exchanges avoid legal liabilities that come with USD trading.

That's simply a practical currency for trading, most platform don't allow you to go back in dollar and when they do it is for huge fees, that's where USDT ccomes.

No it isn't you dumbfuck.

Because every tether has been created with a little more than an actual dollar behind.
It's a very easy way to make money for them.

It's inherent risk you have when you play on such a pioneer market, now tell me why would they do that in a market with such perspective of growth ? USDT has a golden spot in crypto.

I would also point out that this would be like buying a gold backed currency where they tell you outright you can never cash your coin in for your actual gold.

I use it solely to trade between Tether and Bitcoin on Bittrex. It's a really stable coin to trade BTC with as far as I'm concerned. In the end if I want to cash out I'll just take my BTC and transfer it back over to Coinbase.

I hold 1000 tethers

when can I expect this to moon?

Think of it this way: just because something "works" doesn't mean it's a good idea.

You could drive to work at 50 mph over the speed limit and say "hey look, I got to work a lot quicker, this works!"

But keep it up long enough and eventually you'll get slaughtered.

Yeah I get it's not safe and essentially the value of Tether is just being here up by everyone else treating Tether like it's real money, but you can see for yourself just how many people have confidence in Tether's purpose. Millions of dollars worth of Bitcoin are changing hands in an imagined 1:1 ratio with USD seamlessly. Will it last forever? Probably not. Like people here have said all it would take is a big bank run to topple Tether, but I think it's safe to use right now while everyone else trusts in it.

>There are people that unironically use Tether instead of BitUSD