USDT

Is there any reason to avoid using Tether? I've heard mixed opinions.

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It's quite literally a Ponzi scheme

USDT is, at some point, going to implode. When it does, expect it to trigger a seriously bad situation for crypto (like, -75% bad)

This is conservative. Gox peak was -85%. This is worse, it involves a chain of exchanges that will go down with it. I see a -95%

You guys are nuts

when will this fucking shitcoin do anything
I've been holding for 2 years already

Hello Mr.finex

Someone explain where I am wrong.

USDT has a fixed price at $1.00. So for every $1.00 that a USDT exchange is funded, they will credit an account 1 tether. So as more and more people and money get into crypto then exchanges require more tether to credit to account holders. So the supply of tether naturally has to go up. Where is the issue?

Hahahaha discord.gg/JDS4tcX

Anyone?

you cant cash out tethers

The problem is that they are SUPPOSED to buy these USD to fund the USDT. But they act, with reason, like a bank, they don't own 1 USD for each tether generated. Same problem as with a bank, if everyone goes at the same time for a withdraw, everyone is fucked.

>But they act, with reason, like a bank, they don't own 1 USD for each tether generated.

I see the risk. I would ask how do we know this is what they're doing?

>Buy a non existent bank-fiat to support your non existent crypto-fiat

They don't want to release an audit proving they have the funds to back it up (and really who would fund them over a billion dollars?), what they did release wasn't proof of anything, also their fine print states that they have the right not to redeem your USDT for USD as they see fit, people have asked tether to redeem large amounts of USDT and they refused. Maybe no USDT were ever redeemed, there is only one USDT/USD trading pair on kraken with low volume, if you tried to cash out there even a fraction of a million you would send the price to the ground

Holy shit it's just dawned on me... Tether IS the big banks. The good ol' trojan horse.
And they're gonna ram it up our anus the moment crypto pose a real threat to thier rule

cant they just switch it to Eth or BTC and then cash out? realistically nobody fucking cashes out tether. I dont even know a fiat exchange that does. it's a placeholder at best. But i woupd like a minimum reserve ratio pinned to them. Though some of the most stable currencies in the world don't have this.

Yes that's the way to go obviously, but that kind of defeats the purpose of a fait-mirroring currency, doesn't it?

Probably this. If Tether was the only cash out route i would have been really worried, but btc/eth/ltc are all there

this is why the risk is so low. They can say fuck off to any attempted run. Tether is 99.99% used as a placeholder. So it's not a risk. If someome tries to cash out a bajillion of them, they can say fuck off. They sell it for eth and cash out with that instead. Even if they have to dump it at a discount to the point real price takes a jit,they just have to buyback the small amount that stabilizes the price and then small clients can cash out.
sometimes I set sell orders in tether, so I can asess the situation the next day, for example if I want to sell something if the price goes up, but BTC/Eth or whatever I have it paired to somehow tanks I dont want a sale. or hodl if I think the whole market will dump.
Most coins I hold dont even have a usd pairing to cash out so I dont see how it is different.

Corecucks are getting desperate. They don't want people switching to Tether as BTC crashes.

Of course, I also use Tether because there's no way around it. Still, I'm not comfortable with it. As with many other cryptos, there's not much value to back it up

read this newfags and stfu medium.com/@bitfinexed/the-bitfinex-dilemma-blow-up-now-or-try-a-hail-mary-to-retain-in-business-10b9d989359f

the market cap keeps increasing so I bought in, but my coins are still worth the same
what do?

People sell their cryptos for tether because they believe they are backed by real dollars, what if suddenly everyone agrees that tethers are worthless? Then would try to buy back cryptos like btc or eth in order to cash out, but almost no one would want their usdt anymore, so there would be maybe 1 eth trading for 10,000 usdt, and as soon as they would have bought back the crypto they would dump it for real fiat, or maybe they would be stuck with their worthless tethers no one want to buy any

Imagine what dumping 1 billion dollars on btc and eth woud look like, it would crash the whole market

no. This is stupid because.
A) this is true of literally any crypto or hell any fiat. If nobody thinks its worth anything it isnt. Yet somehow this problem only exists under absolutely terrible banking controls.
B)the broomstick effect. If people start deciding a tether is worth less than a USD they can buyback with openmarket operations to increase the price.
C) people buy tether as a placeholder not because they are normies thinking they can cash it out. Hell no one stupid enough to think that would be able to cash out tether.

>
You mean it would increase BTC price? If everyone buys, price goes up....

>people buy tether as a placeholder not because they are normies thinking they can cash it out. Hell no one stupid enough to think that would be able to cash out tether.
They buy tether because the btc/usdt eth/usdt .. trading pairs keeps the same price as the btc/usd eth/usd ... trading pairs, because bots and daytraders arbitrage between the pairs so as to keep the price the same, and they do that because they believe 1 usdt is worth 1 usd, if everyone stops believing that then no more arbitraging to keep the price the same, people would try to get rid of their tethers, sending the usdt pairs to the sky and dumping the usd pairs to the ground, until no one wants to buy their tethers anymore and they're stuck with worthless tokens

Yea sure same goes with bank notes, they only have value because people believe they do, but bank notes rest on an infrastructure widespread in the whole of society, not on one shady company

It would increase the BTC/USDT price, but not the BTC/USD price.

Right now the two pairs are kept at the same level because people believe they ought to be at the same level. If they stop believing that, then people holding USDT will try to buy back cryptos (say BTC) and people holding BTC will stop wanting to sell their BTC for USDT, so BTC/USDT would shoot to the sky. And the people who were holding USDT will likely want to go back in fiat, so they would buy on BTC/USDT and then sell on BTC/USD, everyone would be selling BTC/USD not buying.

1+ billion USDT in circulation so probably tens or hundreds of millions of USD worth would be dumped, and the rest will be stuck with worthless USDT no one wants anymore

I bought around 28k BZC, how fucked am I?