Topic: Bitcoin price- If Tether (USDT) go down, will it be good for Bitcoin? (Read 902 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.
December 16, 2019, 11:26:13 AM
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.
December 16, 2019, 11:10:20 AM
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.
December 16, 2019, 10:20:36 AM
For a short term it would be very bad for bitcoin, there would be a lot of people who will lose money and there will be a lot of people who will want to recover that from bitcoin and withdraw their coins and basically be chaotic for a long time. However in the end we will have a more stable (ironically) and decent market after tether is gone. So I say long term having no tether at all would help us out.
After all we are talking about a corrupt company with a corrupt bank in Bahamas who is no longer supporting their currency 1 to 1 backed anymore, it is not helping us at all right now but slowly draining money away from the market via their company, if they are gone the short term could be horrible but the long term recovery would help many people out and the market as well.
After all we are talking about a corrupt company with a corrupt bank in Bahamas who is no longer supporting their currency 1 to 1 backed anymore, it is not helping us at all right now but slowly draining money away from the market via their company, if they are gone the short term could be horrible but the long term recovery would help many people out and the market as well.
December 16, 2019, 08:39:07 AM
I have no clue why people trusted it and it managed to last this long.
People will do anything for convenience and then they cry afterwards for the Nanny state to save them.
People will do anything for convenience and then they cry afterwards for the Nanny state to save them.
They trust it because it's lasted so long. Tether dodges every bullet. After 5 years, betting on them going down almost starts to feel like betting against Bitcoin.
The resilience of the dollar peg also shows that Tether redemptions are consistently flowing. If people panic sell their USDT, arbitrage traders who can redeem USDT just drive the market back towards $1. As a result, this stability gives confidence to the market. After all, as long as USDT stays pegged to $1 no one is losing value.
This is true even when they were printing and pumping they covered the fractional reserve selling the bubble and hired that law form to publicly announce they had full backing. That added alot of legitimacy to a peg that has ZERO transparency.
Even with the NY Attorney General going after them and their millions seized in that polish bank I think they are Teflon.
December 15, 2019, 05:43:53 PM
I have no clue why people trusted it and it managed to last this long.
People will do anything for convenience and then they cry afterwards for the Nanny state to save them.
People will do anything for convenience and then they cry afterwards for the Nanny state to save them.
They trust it because it's lasted so long. Tether dodges every bullet. After 5 years, betting on them going down almost starts to feel like betting against Bitcoin.
The resilience of the dollar peg also shows that Tether redemptions are consistently flowing. If people panic sell their USDT, arbitrage traders who can redeem USDT just drive the market back towards $1. As a result, this stability gives confidence to the market. After all, as long as USDT stays pegged to $1 no one is losing value.
This is true even when they were printing and pumping they covered the fractional reserve selling the bubble and hired that law form to publicly announce they had full backing. That added alot of legitimacy to a peg that has ZERO transparency.
Even with the NY Attorney General going after them and their millions seized in that polish bank I think they are Teflon.
December 15, 2019, 05:27:32 PM
The capital in Tether that's not withdrawn will be pumped back into Bitcoin because no one wants to hold a stablecoin for too long. There is just too much risk attached to holding it.
Risk to holding it and possibly other stable coins.. Traders may retract a little bit from using Tether but if this spread to other stable coins it may be harmful in a way or another to the actual trading system which may affect bitcoin/altcoins after all.. It is indeed hard to predict the damage that could be done but manipulations will make people think twice before joining cryptocurrencies world.
December 15, 2019, 04:48:19 PM
Perhaps short term we'll see a negative external shock, but in the long run, it barely matters.
I wouldn't say that. It's not easy to get something similar back where the capital remains inside the ecosystem. While fiat is being withdrawn, the outstanding Tethers can't be easily withdrawn because they're held by those not having a connection to Bitfinex. Throughout the whole bear market not much has been printed, but more importantly, not much has actually been withdrawn.
The capital in Tether that's not withdrawn will be pumped back into Bitcoin because no one wants to hold a stablecoin for too long. There is just too much risk attached to holding it.
December 15, 2019, 03:12:37 PM
And man, if the US government is giving Tether such a hard time, I very much doubt they're going to let Facebook proceed with Libra. Things are not looking good on that front.
It's mainly just the state of New York that's hassling Tether. In the scheme of things, they are rather impotent. I almost wonder if the NY AG is being used as a smoke screen to generate evidence for the federal government to build its cases.
The CFTC and DOJ did launch investigations into Bitfinex and Tether 1-2 years ago. For all we know they've been closed......or maybe the DOJ already has indictments under seal (like they did with BTC-e) and they are just waiting for the right moment to pounce. It's impossible to know.
December 15, 2019, 02:00:16 PM
However, if tether breaks and it turns out to be not backed up by USD
How would it break? And isn't it always backed by USD? I can't say I completely understand how the backing works, unless it's like how Libra is supposed to be, but it should always be pegged to the dollar. And if that's true, then I'm not even sure how it can go down in value unless the dollar does.earlier this year, outstanding tethers were only 74% backed by fiat equivalents. that's because bitfinex had a shitload of money seized by law enforcement and tether issued them a loan from customer deposits.
that's what the LEO token sale was all about---making tether solvent again.
USDT fluctuates both above and below $1 for multiple reasons. for example, when there is high demand from chinese traders, it trades at a premium. when there is high supply from tether FUD, it trades at a discount. but since it always returns to $1 we can assume arbitrage is in effect. if no one can get bank wires out of tether like in early 2017, arbitrage is impossible. during those times, USDT should trade at a significant discount.
December 15, 2019, 10:27:55 AM
However, if tether breaks and it turns out to be not backed up by USD
How would it break? And isn't it always backed by USD? I can't say I completely understand how the backing works, unless it's like how Libra is supposed to be, but it should always be pegged to the dollar. And if that's true, then I'm not even sure how it can go down in value unless the dollar does. That would actually create an arbitrage opportunity, because you could then buy Tether with dollars and wait until it stabilizes (I'm not an expert in arbitrage, but that's basically what currency traders do).And man, if the US government is giving Tether such a hard time, I very much doubt they're going to let Facebook proceed with Libra. Things are not looking good on that front.
December 15, 2019, 10:21:19 AM
Read an article on another lawsuit on Bitfinex controlled Stable coin Tether (USDT).
https://news.bitcoin.com/bitfinex-and-tether-receive-another-class-action-lawsuit-in-us-courts/
The operators of the cryptocurrency exchange Bitfinex and the stablecoin Tether have notified users that they were hit with another class action lawsuit in U.S. courts over market manipulation allegations that the companies are trying to frame as mercenary and baseless.
Now the question is, if Tether ever go down Will it affect the price of Bitcoin and the whole crypto ecosystem?
previously there is no relationship about USDT go down will affect with bitcoin price but its wrong, an another article show that USDT has relation with bitcoin. Tether used to pump bitcoin and both move together example in juli 2018 cryptocurrency go down at the same time USDT dropped toohttps://news.bitcoin.com/bitfinex-and-tether-receive-another-class-action-lawsuit-in-us-courts/
The operators of the cryptocurrency exchange Bitfinex and the stablecoin Tether have notified users that they were hit with another class action lawsuit in U.S. courts over market manipulation allegations that the companies are trying to frame as mercenary and baseless.
Now the question is, if Tether ever go down Will it affect the price of Bitcoin and the whole crypto ecosystem?
then in august 2019 bitcoin pump from $6000 to $7000 of course the USDT also increase price
December 15, 2019, 09:04:46 AM
I am quite sure bitcoin could handle this situation. Because if USDT were to be gone, people who rely on stable coins probably would dare to try getting shot at bitcoin, at least. Though on the other hand, as USDT act as bridge between crypto and trader/investor, the situation may turn out the least I expect.
December 15, 2019, 02:51:05 AM
I have no clue why people trusted it and it managed to last this long.
People will do anything for convenience and then they cry afterwards for the Nanny state to save them.
People will do anything for convenience and then they cry afterwards for the Nanny state to save them.
They trust it because it's lasted so long. Tether dodges every bullet. After 5 years, betting on them going down almost starts to feel like betting against Bitcoin.
The resilience of the dollar peg also shows that Tether redemptions are consistently flowing. If people panic sell their USDT, arbitrage traders who can redeem USDT just drive the market back towards $1. As a result, this stability gives confidence to the market. After all, as long as USDT stays pegged to $1 no one is losing value.
And cannot he charged by the govt, whereas tether is
December 15, 2019, 01:50:53 AM
I have no clue why people trusted it and it managed to last this long.
People will do anything for convenience and then they cry afterwards for the Nanny state to save them.
People will do anything for convenience and then they cry afterwards for the Nanny state to save them.
They trust it because it's lasted so long. Tether dodges every bullet. After 5 years, betting on them going down almost starts to feel like betting against Bitcoin.
The resilience of the dollar peg also shows that Tether redemptions are consistently flowing. If people panic sell their USDT, arbitrage traders who can redeem USDT just drive the market back towards $1. As a result, this stability gives confidence to the market. After all, as long as USDT stays pegged to $1 no one is losing value.
December 15, 2019, 01:05:31 AM
Will it be good? I highly doubt that given the influence that USDT currently has over the market.
However, I think that the detrimental effects that tether going down will have on the wider crypto market is overstated to an extreme degree at this point, because of the fact that USDT simply will not be the fundamentals underlying BTC's growth in the long run.
Perhaps short term we'll see a negative external shock, but in the long run, it barely matters.
However, I think that the detrimental effects that tether going down will have on the wider crypto market is overstated to an extreme degree at this point, because of the fact that USDT simply will not be the fundamentals underlying BTC's growth in the long run.
Perhaps short term we'll see a negative external shock, but in the long run, it barely matters.
December 14, 2019, 11:50:05 PM
The whole situation around USDT for me personally is very non-transparent and pretty much in some gray area. Someone tells you that something is backed by USD, then it is not fully backed, but it is not known with what is backed 26% of USDT...
Before the NYAG exposed the whole thing, Tether had changed their terms to this:
Quote
“Every tether is always 100% backed by our reserves, which include traditional currency and cash equivalents and, from time to time, may include other assets and receivables from loans made by Tether to third parties, which may include affiliated entities.”
In hindsight they were stating pretty clearly that USDT wasn't full backed by cash anymore, that "from time to time" its reserves would include loan receivables.
https://cointelegraph.com/news/cryptocurrency-community-eyes-tether-after-website-dilutes-usd-backing-claims
When it first came out they had a disclaimer that they would not be held responsible to redeem tether for currency.
I have no clue why people trusted it and it managed to last this long.
People will do anything for convenience and then they cry afterwards for the Nanny state to save them.
December 14, 2019, 11:29:52 PM
It will affect it a lot.
There is a positive side and also a negative.
It depends on how it will be done.
Take out Tether with a warning first then people will be buying bitcoin and altcoin which will cause a lot of demand.
Now, without a warning and all those money will be taken out with it. I think you know what will happen.
I do think it is not the right time anymore. We are far too late to take out that huge market that is keeping the traders alive.
There is a positive side and also a negative.
It depends on how it will be done.
Take out Tether with a warning first then people will be buying bitcoin and altcoin which will cause a lot of demand.
Now, without a warning and all those money will be taken out with it. I think you know what will happen.
I do think it is not the right time anymore. We are far too late to take out that huge market that is keeping the traders alive.
December 14, 2019, 11:29:34 PM
I doubt not? Tether isn't even 100% backed by USD, and even if it was, there are a lot of other stable coins out there that could replace it. In the short run, market price may scuffle a bit because of tether going down, but it isn't a damage that can't be repaired by time. Rather, a few months should be enough for traders to adjust to the disappearance of tether and move on and about with their trades just as usual.
If however a lot of changes occur, damages may remain in the long term. Tether going down joined up with several famous coins suddenly having issues and the like.
If however a lot of changes occur, damages may remain in the long term. Tether going down joined up with several famous coins suddenly having issues and the like.
December 14, 2019, 09:30:23 PM
Tether is basically a token backed by your own money.
It’s a a contract like any other, but people buy it for a dollar, with some fees for the tx, it’s basically your own money that backs it. The biggest thing question is will they use people funds to cover there losses if there is any
It’s a a contract like any other, but people buy it for a dollar, with some fees for the tx, it’s basically your own money that backs it. The biggest thing question is will they use people funds to cover there losses if there is any
December 14, 2019, 01:30:10 PM
The whole situation around USDT for me personally is very non-transparent and pretty much in some gray area. Someone tells you that something is backed by USD, then it is not fully backed, but it is not known with what is backed 26% of USDT...
Before the NYAG exposed the whole thing, Tether had changed their terms to this:
Quote
“Every tether is always 100% backed by our reserves, which include traditional currency and cash equivalents and, from time to time, may include other assets and receivables from loans made by Tether to third parties, which may include affiliated entities.”
In hindsight they were stating pretty clearly that USDT wasn't full backed by cash anymore, that "from time to time" its reserves would include loan receivables.
https://cointelegraph.com/news/cryptocurrency-community-eyes-tether-after-website-dilutes-usd-backing-claims
December 14, 2019, 10:58:26 AM
Well, based on the article it just pretty much said about how the lawsuit is filled with accusations, and accusations only. Assuming it is true, and Tether goes down, I doubt it could impact Bitcoin price in the long run. Sure, FUD may happen/occur when Tether goes down, but BTC price shouldn't generally be affected by it. Unlike the past, Tether isn't really the only stable coin available out there, and I really doubt stable coins could impact BTC price that much.
December 14, 2019, 10:23:35 AM
The whole situation around USDT for me personally is very non-transparent and pretty much in some gray area. Someone tells you that something is backed by USD, then it is not fully backed, but it is not known with what is backed 26% of USDT... I find stable coins useful in some situations, but there must be strict controls so anyone can not print as much as they want and to claim that everything is backed by fiat.
figmentofmyass scenario 2 really looks pretty ugly, and I hope it never happens because the USDT has really become something most take for granted without thinking about the risks it carries with it.
figmentofmyass scenario 2 really looks pretty ugly, and I hope it never happens because the USDT has really become something most take for granted without thinking about the risks it carries with it.
December 14, 2019, 05:42:12 AM
We already know that Tether actually is backed by USD since it turned out they were only backed by 66% of reserves, hence the reason for the LEO launch. The 33% or so was basically frozen by some banks due to the Crypto Capital scandals, and since it was frozen there is a good chance they will recover it.
They were backed 74% by cash at the time. The LEO offering made them solvent, right?
I think it's doubtful they'll recover the money. It was in the custody of unlicensed money transmitters and commingled with Colombian drug cartel money. I'm not sure how Polish jurisdiction works (I think that's where most of the funds were seized) but in the US I feel like the police would just take it using civil asset forfeiture.
I think this tether mess is way over blown, every few months or so there is some tether fud. And yet many exchanges like Binance or Kraken have large volumes in tether related transactions. Looking at the USDT/USD rate its still pegged to 1:1, so most investors aren't worried.
Yep, but things could change quickly if (for example) the US government seized some more bank accounts and withdrawals stopped flowing.
December 14, 2019, 05:24:09 AM
Now the question is, if Tether ever go down Will it affect the price of Bitcoin and the whole crypto ecosystem?
Ofc it will not be good.
Tether is a tool to buy and trade bitcoin and other cryptocurrencies.
THere are other stable coins already, which is good. As the whole cryptocurrency ecosystem doesn't rely only on tether.
However, if tether breaks and it turns out to be not backed up by USD, a lot of fear will dominate the market and bitcoin price will fall down in the short term.
But in long term it doesn't affect the whole scheme of things
We already know that Tether actually is backed by USD since it turned out they were only backed by 66% of reserves, hence the reason for the LEO launch. The 33% or so was basically frozen by some banks due to the Crypto Capital scandals, and since it was frozen there is a good chance they will recover it.
I think this tether mess is way over blown, every few months or so there is some tether fud. And yet many exchanges like Binance or Kraken have large volumes in tether related transactions. Looking at the USDT/USD rate its still pegged to 1:1, so most investors aren't worried.
December 14, 2019, 03:34:46 AM
Of course it will be good short term as all the usdt will flee and guess where its going to go?
there are 2 scenarios.
1. there's regulatory actions, bank account freezes/seizures, insolvency---but tether and bitfinex remain operational and able to meet day-to-day liquidity requirements
2. the FBI and USAO come after tether and bitfinex---domains and servers seized, personnel arrested, banks continuing to work with them become criminal accessories, etc
scenario #1 is what we've already seen for years. it's the classic "tether FUD". people panic buy bitcoin/altcoins to get out of tether, which drives market prices upwards.
we've never seen scenario #2. i reckon if that happened, all USDT markets would quickly fall to $0 and it would have severely negative effects on the entire crypto market. not only would bitfinex and tether customers be crushed, but so would USDT holders at binance, bittrex, poloniex, okex, and other major exchanges, OTC traders......it would be ugly. a lot of capital would go up in smoke. it would be a much bigger, uglier version of the mt gox collapse.
December 14, 2019, 02:59:35 AM
Imho it would be good. At least on long term.
Imho USDT, being not truly backed by anything, is the key of the Bitcoin price manipulation.
And trading will not die off because USDT will be gone, no. There are other stable coins, properly backed and audited, ready to take the place.
Imho USDT, being not truly backed by anything, is the key of the Bitcoin price manipulation.
And trading will not die off because USDT will be gone, no. There are other stable coins, properly backed and audited, ready to take the place.
December 14, 2019, 01:30:25 AM
Now the question is, if Tether ever go down Will it affect the price of Bitcoin and the whole crypto ecosystem?
Ofc it will not be good.
Tether is a tool to buy and trade bitcoin and other cryptocurrencies.
THere are other stable coins already, which is good. As the whole cryptocurrency ecosystem doesn't rely only on tether.
However, if tether breaks and it turns out to be not backed up by USD, a lot of fear will dominate the market and bitcoin price will fall down in the short term.
But in long term it doesn't affect the whole scheme of things
We already know that Tether actually is backed by USD since it turned out they were only backed by 66% of reserves, hence the reason for the LEO launch. The 33% or so was basically frozen by some banks due to the Crypto Capital scandals, and since it was frozen there is a good chance they will recover it.
I think this tether mess is way over blown, every few months or so there is some tether fud. And yet many exchanges like Binance or Kraken have large volumes in tether related transactions. Looking at the USDT/USD rate its still pegged to 1:1, so most investors aren't worried.
December 14, 2019, 12:51:01 AM
Now the question is, if Tether ever go down Will it affect the price of Bitcoin and the whole crypto ecosystem?
the answer is obviously yes it will affect the entire market negatively.
but the less obvious part is the reason for it. the reason has nothing to do with relationship between tether and bitcoin, despite what most FUDs want you to believe. the only reason would be the fact that many big exchanges such as bitfinex itself rely heavily on tether and a lot of traders are already lulled into a false sense of security while using this centralized altcoin. its downfall (which in my opinion is inevitable) will cause panic and that panic will be the reason for price drops.
additionally i think altcoins will take the biggest hit from this since for example if 1 out of 10 bitcoin exchanges has tether, 9 out of 10 altcoin exchanges have ONLY tether and nothing else.
December 13, 2019, 11:11:22 PM
Regarding the legal problem, I don't think that will prosper, Bitfinex is an Exchange that has many traders who have placed their full trust there, and in my personal experience I have seen that most Exchanges are guided by the price of Bitfinex.
It's a classic movement that some traders do, especially the whales, but if so, it smells really good, we could see a beautiful bullish rebound, maybe that's what it takes to cheer up this Christmas.
Now the question is, if Tether ever go down Will it affect the price of Bitcoin and the whole crypto ecosystem?
It's a classic movement that some traders do, especially the whales, but if so, it smells really good, we could see a beautiful bullish rebound, maybe that's what it takes to cheer up this Christmas.
December 13, 2019, 10:23:48 PM
Of course it will be good short term as all the usdt will flee and guess where its going to go?
December 13, 2019, 10:10:59 PM
Read an article on another lawsuit on Bitfinex controlled Stable coin Tether (USDT).
https://news.bitcoin.com/bitfinex-and-tether-receive-another-class-action-lawsuit-in-us-courts/
The operators of the cryptocurrency exchange Bitfinex and the stablecoin Tether have notified users that they were hit with another class action lawsuit in U.S. courts over market manipulation allegations that the companies are trying to frame as mercenary and baseless.
Now the question is, if Tether ever go down Will it affect the price of Bitcoin and the whole crypto ecosystem?
https://news.bitcoin.com/bitfinex-and-tether-receive-another-class-action-lawsuit-in-us-courts/
The operators of the cryptocurrency exchange Bitfinex and the stablecoin Tether have notified users that they were hit with another class action lawsuit in U.S. courts over market manipulation allegations that the companies are trying to frame as mercenary and baseless.
Now the question is, if Tether ever go down Will it affect the price of Bitcoin and the whole crypto ecosystem?
It will have an effect but I think it will not really cause a massive dump in the prices of Bitcoin and altcoins. In fact I think the opposite is true. It will somehow expand the market cap of Bitcoin and altcoin. There are so many crypto traders who are choosing or trading USDT against other cryptocurrencies because it is stable. But if it will go down, these traders will be forced to take their money from USDT and transfer them into Bitcoin or altcoins. The trade will be much better this way rather than vs the USDT.
December 13, 2019, 09:47:42 PM
Now the question is, if Tether ever go down Will it affect the price of Bitcoin and the whole crypto ecosystem?
Ofc it will not be good.
Tether is a tool to buy and trade bitcoin and other cryptocurrencies.
THere are other stable coins already, which is good. As the whole cryptocurrency ecosystem doesn't rely only on tether.
However, if tether breaks and it turns out to be not backed up by USD, a lot of fear will dominate the market and bitcoin price will fall down in the short term.
But in long term it doesn't affect the whole scheme of things
December 13, 2019, 09:06:44 PM
Read an article on another lawsuit on Bitfinex controlled Stable coin Tether (USDT).
https://news.bitcoin.com/bitfinex-and-tether-receive-another-class-action-lawsuit-in-us-courts/
The operators of the cryptocurrency exchange Bitfinex and the stablecoin Tether have notified users that they were hit with another class action lawsuit in U.S. courts over market manipulation allegations that the companies are trying to frame as mercenary and baseless.
Now the question is, if Tether ever go down Will it affect the price of Bitcoin and the whole crypto ecosystem?
https://news.bitcoin.com/bitfinex-and-tether-receive-another-class-action-lawsuit-in-us-courts/
The operators of the cryptocurrency exchange Bitfinex and the stablecoin Tether have notified users that they were hit with another class action lawsuit in U.S. courts over market manipulation allegations that the companies are trying to frame as mercenary and baseless.
Now the question is, if Tether ever go down Will it affect the price of Bitcoin and the whole crypto ecosystem?
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