Topic: Could Tether (USDT) be really called decentralized cryptocurrency? - page 4. (Read 807 times)
October 24, 2020, 01:51:30 AM
There are almost no real decenetrlization in crypto. Every project is centralized more or less. In terms of mining power or owners. And no, tether is not decentralized at all
October 24, 2020, 01:10:57 AM
Nothing is completely 100% decentralized on the market, more than 50% of the bitcoins have been stored in less than 100 wallet addresses, so decentralization is just an idea we would like to think that way but it's not happening, USDT is not decentralized and that is why the price could be stable around 1$, It wouldn't be like that if it was decentralized, like DIA!
October 24, 2020, 12:55:42 AM
I think Tether has both with a centralized and part decentralized function, But due to its larger USDT circulation Im already doubting that if it was really backed with $fiat (USD) with I is to 1 ratio, Because most of the fiat backed stablecoins has not more that 100 Million total supply thats why Tether should clarify that issue on their part because until it wasnt clear the doubt will still remain.
October 24, 2020, 12:55:00 AM
Tether will never become a decentralized entity. Tether has brought the fiat currency into the new form to be used to fix that volatility problem that has faced by so many people in the past. Tether has fully control over the contract and the company can freeze any tether that looks suspicious i.e stolen tether from the hacked exchange site.
It's just a dream and tether must also comply with the regulation to issue the digital currency backed by the fiat money.
It's just a dream and tether must also comply with the regulation to issue the digital currency backed by the fiat money.
October 24, 2020, 12:41:04 AM
in a more simple perspective USDT like what you said that Tether is like bank is kinda true. they basically own the whole USDT thing and the money to back it up reserved by them. But, what keeps USDT value is because it's backed by real money otherwise it will worth nothing. In the scenario above you mentioned, if all the usdt holders suddenly cash it out or exchange it to real money then it'll be worthless indeed. Except, tether still have some money reserve left and resulting excess USDT while at the same time destroy all the USDT that already exchanged to real $ then the price will be the same.
October 24, 2020, 12:29:07 AM
DAI is the only stable coins which is decentralized but USDT is centralized and more risky to hold than the fiat money. Value of tether can goes to zero anytime due to the inflation around it, people don't really realize how much tether are getting printed, if they comes to know then for sure they will move to other cryptos which will eventually make the tether to be worthless.
October 24, 2020, 12:25:03 AM
No person with even the most basic understanding of cryptocurrency would call Tether a decentralized cryptocurrency. Obviously, Tether the company is just being dishonest when they claim that the token is decentralized, they did that because "decentralized" was/is a very hyped thing. Of course they mean that it's decentralized because it exists on Ethereum network, so there's no middlemen when you move tokens, but the fact that the supply is created in a centralized way, the fact that the peg is maintained by a centralized company is enough to disqualify Tether from being decentralized.
October 23, 2020, 11:49:00 PM
No. A centralized company does not want to create a decentralized cryptocurrency (coin or token), never.
USDT is created by a centralized company and the company try to diversify the chains they use from Bitcoin (OMNI layer) to ERC20, TRC20, EOS chains the USDT has still been a centralized stable coin. Tether can not deny the fact.
USDT is created by a centralized company and the company try to diversify the chains they use from Bitcoin (OMNI layer) to ERC20, TRC20, EOS chains the USDT has still been a centralized stable coin. Tether can not deny the fact.
October 23, 2020, 01:30:24 PM
The first sentence in the white paper of Tether (USDT) says the following. A digital token backed by fiat currency provides individuals and organizations with a
robust and decentralized method of exchanging value while using a familiar accounting unit.
Now don't get me wrong. I use USDT a lot, in fact I love it. The fixed price of $1 while being a cryptocurrency makes crypto transactions for purchasing services easy and beautiful.
But I keep thinking of how original paper money was created. In history we had gold for trading. Then gold became inconvenient so bankers offered to hold gold for paper that verifies how much gold is owed to customers. Then this paper became more convenient and was used instead of gold with the trust that its backed by gold. Then this paper a long time later became a currency that isn't backed by gold anymore.
Could the same happen with USDT. If everyone decided to claim original $$$ with their USDT, would Tether Limited issue it all making the price worthless?
Anyway the point I am trying to make is that Tether (USDT) is centralized around the Tether Limited's will to keep it going. This company is basically like a bank too.
robust and decentralized method of exchanging value while using a familiar accounting unit.
Now don't get me wrong. I use USDT a lot, in fact I love it. The fixed price of $1 while being a cryptocurrency makes crypto transactions for purchasing services easy and beautiful.
But I keep thinking of how original paper money was created. In history we had gold for trading. Then gold became inconvenient so bankers offered to hold gold for paper that verifies how much gold is owed to customers. Then this paper became more convenient and was used instead of gold with the trust that its backed by gold. Then this paper a long time later became a currency that isn't backed by gold anymore.
Could the same happen with USDT. If everyone decided to claim original $$$ with their USDT, would Tether Limited issue it all making the price worthless?
Anyway the point I am trying to make is that Tether (USDT) is centralized around the Tether Limited's will to keep it going. This company is basically like a bank too.
Jump to: