Topic: Could Tether Bring Down Bitcoin? (Read 824 times)
Reported today that Bitfinex used Tether reserves to mask missing $850 Million which sounds very shady.
The tether cannot take down Bitcoin because it is Stablecoin and it has a high degree of stability, so it is unable to compete with Bitcoin. Tether is a safe choice when the market falls so when the market is stable and growing there will not be any investors who want to hold Tether because it is not profitable for them.
How can Tether bring down or replace Bitcoin, when it is an entirely different type of asset. Tether is the online version of the United States Dollar and its value is exactly equivalent to the exchange rate of USD. On the other hand, Bitcoin is an independent currency, and its exchange rate doesn't have any connection with that of the USD.
I think a more logical question to ask would be: "Could Tether bring down credit cards?"
I think a more logical question to ask would be: "Could Tether bring down credit cards?"
there is no relationship between bitcoin and tether even though people associate it the 2017 bull run of bitcoin to be caused by some tether manipulations but this is not so. people just want find a common factor like tether that will seem to be the one responsible for bitcoin bull run. however, bitcoin value and price is not dependent on tether so it cant affect it.
I don't think tether has such big power to take Bitcoin down. Stable coin is not enough and if people are going to those fiat-based, I'm pretty sure there will be more fiat-based tokens and crypto space is nothing different with fiat space.
If a stable coin takes place of bitcoin in future then it literally meant to be the end of crypto era,so people who had thing though need to think why they need stable coins which is centralized and against the decentralized payment system.IMO,stable coins will not survive too long,they have high hope until the coins were traded when crypto comes for payment then exchanges and stable coins will lose its demand. 
I don't think tether has such big power to take Bitcoin down. Stable coin is not enough and if people are going to those fiat-based, I'm pretty sure there will be more fiat-based tokens and crypto space is nothing different with fiat space.
I always thought that Tether and Bitcoin are an alliance. Like, the first one helps to another.
So I don`t think that it will bring Bitcoin down. We are in the same boat.
If it was not for bitcoin then tether will not exist so tether and bitcoin do not have a relationship as equals, bitcoin does not need tether at all and if anything tether is slowing the adoption of bitcoin, the ones that need tether are people like traders and investors which do not like to hold bitcoin for the long term and like to get out of the market when the market gives them an indication that it will go down and at that point it is preferable for them to hold fiat or a coin like tether that mimics fiat. So I don`t think that it will bring Bitcoin down. We are in the same boat.
Tether is also a coin, but a stable coin. Some people buy it to withhold the value of their money, without any form of increase or decrease in amount. So I do not expect that there would be anyone who will intentional waste his money in order to risk pumping or dumping of bitcoin with what he has. As a matter of fact, an individual cannot get that done with his tether.
It's nothing like cryptocurrency, in my opinion, much like 99% of other coins and tokens are really just digital versions of normal money, backed by nothing of any real value, not even backed by security or decentralized values like Bitcoin.
No increase or decrease in amount? You should check USDT markets and see how "stable" it is. It loses value and keeps getting pumped and produced.
Tether is a stable coin, why will it bring down btc? I don't think that will ever occur, when there is a shake up in price of btc people preserve their hodlings using Tether and buy back when it is time, i see both tether and btc working simultaneously, btc is beginning of all crypto and will continue to maintain it's lead, btc has survived without tether around and even now will still continue to do so, stable coins are also important to have around just for one reason.
If Tether falls, what would happen? First, there will be a sell-off of Tether meaning people will buy whatever pairs with Tether - BTC (of course), ETH, XMR, DASH, XRP, etc. They will experience a brief spike in price. What's next? Nothing.... Crypto started without these stablecoins. It's just going to be harder to move crypto assets around but BTC and LTC will facilitate it once again.
The real danger is "banning fiat to exchange with cryptocurrencies."
The real danger is "banning fiat to exchange with cryptocurrencies."
I always thought that Tether and Bitcoin are an alliance. Like, the first one helps to another.
So I don`t think that it will bring Bitcoin down. We are in the same boat.
So I don`t think that it will bring Bitcoin down. We are in the same boat.
It is the most used stable coin which is backed by USD adding value to it. This isn't gonna bring down bitcoin for any reason. Bitcoin will be in the market same as now, it'll continue to face obstacles and it always has some solution overcoming the same. If there is some possibility for a fall down to USD, it happens only if the entire network gets shut for a longer time period which will never happen.
you're right, i think Tether's hopes of destroying bitcoin are too far away and almost impossible. i also think like you, bitcoin will be in the same market now or in the future.
It is the most used stable coin which is backed by USD adding value to it. This isn't gonna bring down bitcoin for any reason. Bitcoin will be in the market same as now, it'll continue to face obstacles and it always has some solution overcoming the same. If there is some possibility for a fall down to USD, it happens only if the entire network gets shut for a longer time period which will never happen.
I am more cautious about Tether that it will crash one day as it is not fully audited and it is backed not only
with $ but with other assets as well.
with $ but with other assets as well.
In spite of the neverending hubbub surrounding Tether’s emission and unclear backing, it is these authors’ opinion that the threat it poses is vastly offset by the services it renders. Its solvency appears to no longer be in question, and while the public and the media are right to contemplate the possibility of authorities bringing USDT trading to a halt, they should not dread the aftermath. Certainly, in the short run Bitcoin price would be strongly affected, but there’s no reason why it should terminally spiral down.
It seems to survive every spiral down anyway, i'm not worried
In spite of the neverending hubbub surrounding Tether’s emission and unclear backing, it is these authors’ opinion that the threat it poses is vastly offset by the services it renders. Its solvency appears to no longer be in question, and while the public and the media are right to contemplate the possibility of authorities bringing USDT trading to a halt, they should not dread the aftermath. Certainly, in the short run Bitcoin price would be strongly affected, but there’s no reason why it should terminally spiral down.
The story of Tether to date has been one of success. Within two years it has grown from storing less than $10M to almost $2.8B in value. Being listed on virtually every exchange, it enjoys massive network effects and the market trust in its convertibility has remained quasi absolute throughout its history.
"Fiat-backed stablecoins are therefore rarely actual cryptocurrencies, which causes them to inherit their main characteristics and shortcomings from the centralised banking system. Ultimately, they function in the same manner as fiat, backed by what amounts to an IOU."
"There is a theory that stablecoins such as Tether have been used both to stabilise and manipulate Bitcoin’s price, especially during the 2017 Bitcoin bull run."
"What is important to remember, is that any asset may appear stable until it suddenly isn’t."
Really interesting read by crypto CEO = https://medium.com/@DDhopn/stablecoins-3b93b4f1ddc5
"There is a theory that stablecoins such as Tether have been used both to stabilise and manipulate Bitcoin’s price, especially during the 2017 Bitcoin bull run."
"What is important to remember, is that any asset may appear stable until it suddenly isn’t."
Really interesting read by crypto CEO = https://medium.com/@DDhopn/stablecoins-3b93b4f1ddc5
Tether is basically an IOU token, but if we believe they will pay, then it cannot be worth less than 1 US dollar. So chill.
Bitcoin is the main coin from which the whole cryptocurrency world began to be created. It is the basis and its fall can drop the entire crypto market down.
USDT is just a pathetic parody of the digital dollar. Which does not even guarantee to have a price equal to one dollar. Therefore, do not pay attention to it.
That's right, Bitcoin has a very important role in the Crypto region because the king and price developments affect all coins or markets. The USDT digital currency is still low but we don't know in the future so I just hope for the best, especially in the rise in Bitcoin prices which will stabilize market prices. USDT is just a pathetic parody of the digital dollar. Which does not even guarantee to have a price equal to one dollar. Therefore, do not pay attention to it.
bitcoin doesn't rely on Tether so no!
90% of bitcoin volume is coming from fiat exchanges with actual fiat currencies such as US dollar, Canadian dollar, Japanese Yen, Euro, CNY, ... and a small percentage of it is from Tether which is mostly people who are moving coins between exchanges to do arbitrage trading.
on the other hand 90% of the altcoin/fiat volume and about 40% of their total volume comes from Tether. so if anything the altcoins should take a huge hit.
of course the FUD of a shady coin like Tether going down is going to harm bitcoin even though bitcoin has nothing to do with it.
This, bitcoin is by far the leader of the market which means that whatever happens in other coins has very little effect on it however the opposite is true for altcoins, whenever something happens in bitcoin whether that is positive or negative altcoins find themselves severally affected by it, you just need to look a few weeks back when the price of bitcoin began to go up very rapidly and most altcoins that had not moved a lot during the last year immediately reacted to the movements of bitcoin and they began to go up as well. 90% of bitcoin volume is coming from fiat exchanges with actual fiat currencies such as US dollar, Canadian dollar, Japanese Yen, Euro, CNY, ... and a small percentage of it is from Tether which is mostly people who are moving coins between exchanges to do arbitrage trading.
on the other hand 90% of the altcoin/fiat volume and about 40% of their total volume comes from Tether. so if anything the altcoins should take a huge hit.
of course the FUD of a shady coin like Tether going down is going to harm bitcoin even though bitcoin has nothing to do with it.
Jump to: