Topic: Bitcoin price- If Tether (USDT) go down, will it be good for Bitcoin? (Read 908 times)
January 07, 2020, 12:18:35 AM
They must be paying heaps of taxes 🤷♂️
December 22, 2019, 04:29:47 AM
I really though Tether would be long gone by now. Full marks for their doggedness but I don't understand how crypto fans have allowed their market to be largely underpinned by a token that's much MUCH worse and more dangerous than regular fiat in every conceivable way.
I thought so too. Frankly, I thought the US government was going to take down Bitfinex and Tether 2-3 years ago. As more time goes on, I'm beginning to wonder if they are bulletproof, set up in ways where the US government can't touch them, aside from maybe nabbing the .com domain.
I really underestimated what the Chinese exchange ban would mean for Tether. It took me a long time to draw the connection between the China ban, Huobi, Okex, etc. setting up offshore USDT-based exchanges, and the explosion of Tether's market cap.
For Chinese people used to parking funds at shadow banks fronting as BTC exchanges, Tether may not look so risky.
December 21, 2019, 12:55:09 PM
If Tether (USDT) go down, will it be good for Bitcoin?
It should be good. So far people day trade. If there would be no stable coins then they would more hold then day trade. Since when selling Bitcoin would have to pay taxes. But. Tether is not the only stable coin. There are plenty and and more and more are coming. Libra soon, .... So when tether goes down will be no changes.
No it would not be good. I don't think tether will collapse but in the off chance that it actually did, then it would be disastrous and even if you hold Bitcoin, your Bitcoin value would most likely decrease anyways because it would turn out that tether ended up being some scam and many people would just get out all together and just invest their money in the stock market.
Libra isn't really going to be a tether competitor, its going to be centralized and who knows if it will actually go live. When they announced it many of the government bodies stopped in and tried to stop it. By the way these meetings go, it could be years before Libra is actually released.
Like tether is not centralised? Of course it is centralised it cant work without third party that takes your USD and securely store them and print tether. Or give you USD and burn tether for it. Yes Libra is at this point meant like a stable coin. It will for sure expand its usecase.
December 21, 2019, 07:25:05 AM
No, I think tether value will move to btc or other crypto
Tether vapourising means there's no value to move. It's all gone. A sudden giant hole has appeared in a vast number of exchanges and external balances. Even if those who were wiped out did want to stay in crypto they may have nothing to stay with.
I really though Tether would be long gone by now. Full marks for their doggedness but I don't understand how crypto fans have allowed their market to be largely underpinned by a token that's much MUCH worse and more dangerous than regular fiat in every conceivable way.
Even more bizarrely you see people parking value in it for a long term wait when there are exchange with real insured dollars waiting just a short transfer away. It kind of feels like yet another very hard lesson waiting to be ladled out.
December 21, 2019, 07:08:02 AM
If Tether goes down, 4 billion USDT becomes worth $0. What was previously $4 billion in value waiting to be pumped into crypto becomes $0. Meanwhile, tens of thousands traders and investors across the whole ecosystem will get burnt and lots of exchanges will lose all their liquidity. At the same time, the mainstream media will showcase unprecedented investor losses across dozens of exchanges to paint BTC investment as incredibly risky.
You believe this will be good for BTC prices?
You believe this will be good for BTC prices?
So you think all the tether will suddenly become worth Zero in one instant everywhere all at once?
I rather think it will be more like a bank run.
If fiat withdrawals stop flowing, we'll just see a temporary discount develop in USDT prices as people exit into crypto. This happened in March-April 2017 when Tether lost banking partners. Prices leveled out pretty quickly. I think this effect will be even more dampened next time around due to the strong OTC demand for Tether in China. When the Chinese are bullish, USDT tends to trade at a premium since OTC brokers source it from exchanges like Huobi and Okex. This demand should help mitigate supply from people selling based on fear of insolvency, etc.
But let's say the Department of Justice slaps a seizure notice on Tether's website, seizes a bunch of their bank accounts and servers, arrests executives. In that situation, I believe price will quickly fall near $0. We'll probably see some people buying at low prices betting on a long shot recovery through a court-approved process, but overall I would expect most of that $4 billion to disappear very quickly.
Yes, quickly not instantly as you stated before. all that capital will not evaporate into nothingness. There will be attempt to save it with walls and they will probably fail but during that time many will get divested at a huge loss. But that what you get when you trust, #NotyouKeys
December 21, 2019, 01:30:18 AM
If Tether goes down, 4 billion USDT becomes worth $0. What was previously $4 billion in value waiting to be pumped into crypto becomes $0. Meanwhile, tens of thousands traders and investors across the whole ecosystem will get burnt and lots of exchanges will lose all their liquidity. At the same time, the mainstream media will showcase unprecedented investor losses across dozens of exchanges to paint BTC investment as incredibly risky.
You believe this will be good for BTC prices?
You believe this will be good for BTC prices?
So you think all the tether will suddenly become worth Zero in one instant everywhere all at once?
I rather think it will be more like a bank run.
If fiat withdrawals stop flowing, we'll just see a temporary discount develop in USDT prices as people exit into crypto. This happened in March-April 2017 when Tether lost banking partners. Prices leveled out pretty quickly. I think this effect will be even more dampened next time around due to the strong OTC demand for Tether in China. When the Chinese are bullish, USDT tends to trade at a premium since OTC brokers source it from exchanges like Huobi and Okex. This demand should help mitigate supply from people selling based on fear of insolvency, etc.
But let's say the Department of Justice slaps a seizure notice on Tether's website, seizes a bunch of their bank accounts and servers, arrests executives. In that situation, I believe price will quickly fall near $0. We'll probably see some people buying at low prices betting on a long shot recovery through a court-approved process, but overall I would expect most of that $4 billion to disappear very quickly.
December 20, 2019, 10:50:23 PM
No, I think tether value will move to btc or other crypto
December 20, 2019, 08:24:56 PM
The number of stablecoins available doesn't matter. What matters is the size of their markets. By market cap:
Tether $4,139,866,978
USDC $512,336,348
PAX $238,838,402
TUSD $156,266,743
BUSD $18,265,490
The latter 4 combined are only 22% of Tether's market. No matter how you look at it, Tether is a huge part of the crypto market. If it goes down and $4 billion in value gets wiped out, it'll be a massive blow to the ecosystem.
Tether $4,139,866,978
USDC $512,336,348
PAX $238,838,402
TUSD $156,266,743
BUSD $18,265,490
The latter 4 combined are only 22% of Tether's market. No matter how you look at it, Tether is a huge part of the crypto market. If it goes down and $4 billion in value gets wiped out, it'll be a massive blow to the ecosystem.
No it doesn't, what matters is the backing of the stablecoin. If its backed by a company that has Fed insurance then its safer than Tether.
We're not talking about what is "safer" than Tether. We're discussing what will happen to the crypto market if Tether collapses (from insolvency, law enforcement actions, etc).
Tether doesn't have deposit insurance but its market is 800% larger than the closest competitor. The bigger the market, the more risk exposure investors have = the worse the fallout will be when shit hits the fan.
What also matters is the fact that with all those options as well as alts and King Daddy BTC there is more than enough liquidity to bail out of Tether.
It will actually make BTC market cap larger and will show these retards to stop holding in an unbacked token.
It will actually make BTC market cap larger and will show these retards to stop holding in an unbacked token.
If Tether goes down, 4 billion USDT becomes worth $0. What was previously $4 billion in value waiting to be pumped into crypto becomes $0. Meanwhile, tens of thousands traders and investors across the whole ecosystem will get burnt and lots of exchanges will lose all their liquidity. At the same time, the mainstream media will showcase unprecedented investor losses across dozens of exchanges to paint BTC investment as incredibly risky.
You believe this will be good for BTC prices?
So you think all the tether will suddenly become worth Zero in one instant everywhere all at once?
I rather think it will be more like a bank run.
December 20, 2019, 03:29:47 PM
The number of stablecoins available doesn't matter. What matters is the size of their markets. By market cap:
Tether $4,139,866,978
USDC $512,336,348
PAX $238,838,402
TUSD $156,266,743
BUSD $18,265,490
The latter 4 combined are only 22% of Tether's market. No matter how you look at it, Tether is a huge part of the crypto market. If it goes down and $4 billion in value gets wiped out, it'll be a massive blow to the ecosystem.
Tether $4,139,866,978
USDC $512,336,348
PAX $238,838,402
TUSD $156,266,743
BUSD $18,265,490
The latter 4 combined are only 22% of Tether's market. No matter how you look at it, Tether is a huge part of the crypto market. If it goes down and $4 billion in value gets wiped out, it'll be a massive blow to the ecosystem.
No it doesn't, what matters is the backing of the stablecoin. If its backed by a company that has Fed insurance then its safer than Tether.
We're not talking about what is "safer" than Tether. We're discussing what will happen to the crypto market if Tether collapses (from insolvency, law enforcement actions, etc).
Tether doesn't have deposit insurance but its market is 800% larger than the closest competitor. The bigger the market, the more risk exposure investors have = the worse the fallout will be when shit hits the fan.
What also matters is the fact that with all those options as well as alts and King Daddy BTC there is more than enough liquidity to bail out of Tether.
It will actually make BTC market cap larger and will show these retards to stop holding in an unbacked token.
It will actually make BTC market cap larger and will show these retards to stop holding in an unbacked token.
If Tether goes down, 4 billion USDT becomes worth $0. What was previously $4 billion in value waiting to be pumped into crypto becomes $0. Meanwhile, tens of thousands traders and investors across the whole ecosystem will get burnt and lots of exchanges will lose all their liquidity. At the same time, the mainstream media will showcase unprecedented investor losses across dozens of exchanges to paint BTC investment as incredibly risky.
You believe this will be good for BTC prices?
December 20, 2019, 10:03:23 AM
Binance already lists at least 3 stablecoins so I'm not seeing this as being near as important as it would have been a few years ago. USDC and PAX are both available and I made a PAX Purchase and Withdrawal for testing and it only took hours. That is not an endorsement just an observation.
The number of stablecoins available doesn't matter. What matters is the size of their markets. By market cap:
Tether $4,139,866,978
USDC $512,336,348
PAX $238,838,402
TUSD $156,266,743
BUSD $18,265,490
The latter 4 combined are only 22% of Tether's market. No matter how you look at it, Tether is a huge part of the crypto market. If it goes down and $4 billion in value gets wiped out, it'll be a massive blow to the ecosystem.
No it doesn't, what matters is the backing of the stablecoin. If its backed by a company that has Fed insurance then its safer than Tether. What also matters is the fact that with all those options as well as alts and King Daddy BTC there is more than enough liquidity to bail out of Tether.
It will actually make BTC market cap larger and will show these retards to stop holding in an unbacked token.
December 19, 2019, 08:52:02 PM
Binance already lists at least 3 stablecoins so I'm not seeing this as being near as important as it would have been a few years ago. USDC and PAX are both available and I made a PAX Purchase and Withdrawal for testing and it only took hours. That is not an endorsement just an observation.
The number of stablecoins available doesn't matter. What matters is the size of their markets. By market cap:
Tether $4,139,866,978
USDC $512,336,348
PAX $238,838,402
TUSD $156,266,743
BUSD $18,265,490
The latter 4 combined are only 22% of Tether's market. No matter how you look at it, Tether is a huge part of the crypto market. If it goes down and $4 billion in value gets wiped out, it'll be a massive blow to the ecosystem.
It's really crazy how small the adoption of the other stable coins is. Tether is apparently the big player.
December 19, 2019, 04:46:51 PM
Binance already lists at least 3 stablecoins so I'm not seeing this as being near as important as it would have been a few years ago. USDC and PAX are both available and I made a PAX Purchase and Withdrawal for testing and it only took hours. That is not an endorsement just an observation.
The number of stablecoins available doesn't matter. What matters is the size of their markets. By market cap:
Tether $4,139,866,978
USDC $512,336,348
PAX $238,838,402
TUSD $156,266,743
BUSD $18,265,490
The latter 4 combined are only 22% of Tether's market. No matter how you look at it, Tether is a huge part of the crypto market. If it goes down and $4 billion in value gets wiped out, it'll be a massive blow to the ecosystem.
December 19, 2019, 03:24:10 PM
Now the question is, if Tether ever go down Will it affect the price of Bitcoin and the whole crypto ecosystem?
There is no doubt that any negative impact on the USDT market will have an negative influence on the BTCitcoin market, when the price was rallying in 2017 there were huge amounts of USDT created and circulated by the shady team and even now majority of the users are holding their profits in Tether and it is not a good sign considering their past history and their lack of complete transparency and if there is something that affects the USDT market it will affect the BTCitcoin market as well. December 18, 2019, 06:42:30 PM
Binance already lists at least 3 stablecoins so I'm not seeing this as being near as important as it would have been a few years ago. USDC and PAX are both available and I made a PAX Purchase and Withdrawal for testing and it only took hours. That is not an endorsement just an observation.
December 17, 2019, 03:25:24 PM
Tether isn't just an altcoin. People use it as a substitute for USD in the BTC markets and it has significant fiat inflows and outflows. People buy and sell BTC for it, so of course it affects BTC's supply and demand.
USDT (or USDT-linked) markets like Binance, Bitfinex, Bittrex, Poloniex, Okex, Huobi, etc. provide huge amounts of liquidity to the market so I would say Tether has a significant effect on price discovery.
USDT (or USDT-linked) markets like Binance, Bitfinex, Bittrex, Poloniex, Okex, Huobi, etc. provide huge amounts of liquidity to the market so I would say Tether has a significant effect on price discovery.
I still don't see a direct relation to it being a crypto just to buy other cryptocurrencies which in turn can affect the price of Bitcoin directly. Using the same line of thinking if Tether is considered as a "substitute" for USD and it shut down then how can it directly affect the price of Bitcoin negatively when Tether itself cannot be used in the market?
Imagine a situation where several of the world's largest BTC exchanges all go down at once: billions of dollars in disposable capital waiting to enter the crypto markets disappears in a heartbeat. That's what Tether going down represents. If USDT goes to $0, that's $4 billion dollars in crypto trader/investor capital up in smoke, gone. A very large swathe of crypto investors/traders would have their disposable capital destroyed. That would have a huge negative effect on demand for BTC and crypto in general, not to mention the hugely negative effects on market sentiment.
December 17, 2019, 01:42:11 PM
As long as Bitcoin is not directly affected by the decision I don't see it being pulled down together with Tether since it is just an altcoin and has barely anything to do with Bitcoin's own demand and supply.
Tether isn't just an altcoin. People use it as a substitute for USD in the BTC markets and it has significant fiat inflows and outflows. People buy and sell BTC for it, so of course it affects BTC's supply and demand.
USDT (or USDT-linked) markets like Binance, Bitfinex, Bittrex, Poloniex, Okex, Huobi, etc. provide huge amounts of liquidity to the market so I would say Tether has a significant effect on price discovery.
I still don't see a direct relation to it being a crypto just to buy other cryptocurrencies which in turn can affect the price of Bitcoin directly. Using the same line of thinking if Tether is considered as a "substitute" for USD and it shut down then how can it directly affect the price of Bitcoin negatively when Tether itself cannot be used in the market? Yes if they have given them time to liquidate their Tether then we might even see other cryptocurrencies benefit from it since we will see Tether's market share go to other cryptocurrencies which I think the biggest beneficiary for it will be Bitcoin. Tether and any other stable coins just acts as a safe haven and a tool for them to transfer their money back to another crypto so there is really no way it has a direct affect on Bitcoin negatively.
December 16, 2019, 04:37:04 PM
As long as Bitcoin is not directly affected by the decision I don't see it being pulled down together with Tether since it is just an altcoin and has barely anything to do with Bitcoin's own demand and supply.
Tether isn't just an altcoin. People use it as a substitute for USD in the BTC markets and it has significant fiat inflows and outflows. People buy and sell BTC for it, so of course it affects BTC's supply and demand.
USDT (or USDT-linked) markets like Binance, Bitfinex, Bittrex, Poloniex, Okex, Huobi, etc. provide huge amounts of liquidity to the market so I would say Tether has a significant effect on price discovery.
December 16, 2019, 03:39:37 PM
Now the question is, if Tether ever go down Will it affect the price of Bitcoin and the whole crypto ecosystem?
I think that the best way to answer your question is for you to answer this question. Is Tether the market leader in the crypto market at present? We all know that the market leader is the one that influences the prices and the ones below it technically has minor to no influence whatsoever with the one leading the market. As long as Bitcoin is not directly affected by the decision I don't see it being pulled down together with Tether since it is just an altcoin and has barely anything to do with Bitcoin's own demand and supply.
December 16, 2019, 03:02:39 PM
If Tether (USDT) go down, will it be good for Bitcoin?
It should be good. So far people day trade. If there would be no stable coins then they would more hold then day trade.
people wouldn't stop trading. they would just hedge using regular fiat on exchanges instead. that's what everyone did before. they just used exchanges like mt gox, bitstamp, and btc-e instead of all the tether-backed exchanges (like binance) that exploded in popularity years later.
the genie is out of the bottle. if tether goes down, stablecoins aren't going away.
December 16, 2019, 11:44:38 AM
It's a stalemate at the moment. If USDT disappeared due to some major fuckup by bitfinex, the price of BTC and other altcoins would take a plunge. At the same time there's no way to simply erase it without causing a disturbance on the markets. It's ok while it works, but if something happens to it the price will go down.
I'd really prefer if it was never made, but since we have it we have to live with it for as long as possible.
I'd really prefer if it was never made, but since we have it we have to live with it for as long as possible.
Jump to: