What your intentions are? Risks - The potential cryptocurrency environment has no limit on value, but it also carries certain risks. Compared to the level of risk, Tether and altcoin are always more risky than bitcoin. However, Tether helps with market confidence and a favor for bitcoin value is certain. Stablecoin - It's impossible to break a trend for bitcoin. Although Tether started and dragged many stablecoins in tandem. But it cannot pose a threat to bitcoin, but on the contrary, bitcoin could be most valued because of that liquidity.
Topic: How risky is Tether to Bitcoin? (Read 432 times)
It's a huge risk for the cryptocurrency space. A lot of people don't realize how exposed they are, because so many transactions occur in tethers. If you removed those tethers, it would lead to a significant crash in cryptocurrency prices. It could cut across multiple exchanges.
@squatter. Are you referring to wash trading? I would argue that because of wash trading and with this, price and volume manipulation, I reckon the cryptospace market capitalization should be smaller than what it presently is.
Their stablecoin USDT is more than 50% of the volume of the whole cryptospace.
Are you referring to trading volumes on exchanges? Because some of the exchanges with the highest reported USDT trading volumes are accused of reporting fake data.
Is it possible that Tether's share of the overall market is being overstated?
@figmentofmyass. I assume you are talking about Bitfinex? The people behind this one exchange is being investigated by the NYAG for fraud. Their stablecoin USDT is more than 50% of the volume of the whole cryptospace. Much of it is underpinned by USDT. There is systemic risk.
If Tethers are actually 1:1 backed, then it's just as dangerous as the typical fiat USD.
If Tether's aren't actually 1:1 backed, then it's definitely a problem.
If Tether's aren't actually 1:1 backed, then it's definitely a problem.
people often repeat this but what's the problem, exactly?
not the philosophical problem of fractional reserve---that applies to the whole banking system and probably a bunch of crypto exchanges too. but how/why is this one exchange's USD balances such a problem for bitcoin?
worst case scenario, people holding USD balances with tether get screwed over---the same risk at literally any custodial exchange.
the amount of bitcoins held by coinbase (~1 million or 5-6% of the entire bitcoin supply) is much scarier to me. that could equate to massive political influence over bitcoin, especially as their coffers grow even larger.
They cannot be compared exactly. Tether is the most recognized cryptocurrency in the stablecoin family. It is known for having less volatility compared to Bitcoin. Therefore, it is chosen by risk-averse investors.
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Trying to figure out if all this news about tether being a scam/ticking time bomb is a black swan event threat to bitcoin or if it's FUD. Would love to hear your thoughts.
Actually, it is not only ether which other's thought that may be a threat to bitcoin. Thus still, that doesn't affect bitcoin's progress. Though the history of tether where it came from and how it became popular stable coin was controversial, at some point it can also affect bitcoin's price when tether is being manipulated by some whales or agencies.
Yeah since it's value was honored by all traders and exchange as an equivalent in fiat. All crypto will be heavily affected once tether become a scam because its the stable that gives the majority of the value of all crypto currency since there is no/few crypto to fiat pair in all exchange.
Trying to figure out if all this news about tether being a scam/ticking time bomb is a black swan event threat to bitcoin or if it's FUD. Would love to hear your thoughts.
Actually, it is not only ether which other's thought that may be a threat to bitcoin. Thus still, that doesn't affect bitcoin's progress. Though the history of tether where it came from and how it became popular stable coin was controversial, at some point it can also affect bitcoin's price when tether is being manipulated by some whales or agencies.
It's an immense danger to the space of the cryptocurrency. Many individuals don't understand how uncovered they are, on the grounds that in ties there are such countless exchanges. It would prompt a huge accident in cryptocurrency costs in the event that you eliminated those ties. It could slice through different trades.
Seems the people behind Tether certainly know nearly all the tricks.
Looks like this is how they've bought themselves considerable time.
I guess if big exchanges can't sell tether for usd, then they'll be forced to sell their btc instead.
Question is how hard and how long for?
Optimistic in me says that Mt Gox went down without causing catastrophe (okay it was pretty bad), but Mt Gox weren't in a position to have to sell btc to keep cover costs were they?
Are there any legitimate decentralised usd stablecoins?
How can they hold usd but be decentralised at the same time?
Looks like this is how they've bought themselves considerable time.
I guess if big exchanges can't sell tether for usd, then they'll be forced to sell their btc instead.
Question is how hard and how long for?
Optimistic in me says that Mt Gox went down without causing catastrophe (okay it was pretty bad), but Mt Gox weren't in a position to have to sell btc to keep cover costs were they?
Are there any legitimate decentralised usd stablecoins?
How can they hold usd but be decentralised at the same time?
Everyone should read this article and know more about Tether. Everyone's lack of research and knowledge is showing and it is quite upsetting. In any case, this is an introduction on the history of Tether, the controversy behind it and the questions that we should be asking.
https://bennettftomlin.com/2020/12/08/an-introduction-to-the-tether-bitfinex-controversy/
https://bennettftomlin.com/2020/12/08/an-introduction-to-the-tether-bitfinex-controversy/
Tether is the most popular stablecoin is crytocurrency and also one of top 3 coins in coinmarketcap rank. It is backed by Gold and USD value with 1:1 ratio. It is the most trusted stablecoin although it has some issues but still it is fair enough. So i don't find any problem to use USDT when you think market is volatile. Stable coins like USDT is very essential in volatile market like few days ago, who have perked their assets in USDT or stablecoins, now already saved almost 20% of their assets in USD value in the small correction period.
Trying to figure out if all this news about tether being a scam/ticking time bomb is a black swan event threat to bitcoin or if it's FUD. Would love to hear your thoughts.
Tether is an alternative storage for traders and users who want to stock their asset without thinking of big loss and big gain. All the crypto currencies have a risk and you should be aware of that, not only Tether and bitcoin as they can just explode anytime like they will get a no value at all if in case all the governments will decide to banned the usage of crypto currencies.
And Tether will not be a threat to bitcoin and to all crypto that are not stable currencies because the investors will surely to look for a way in order to profit and stablecoin is not an option for them therefore they need to buy a crypto that are not stable in order to achieve their goal which to profit. That is a very simple way to eliminate the threat of stable currencies.
Trying to figure out if all this news about tether being a scam/ticking time bomb is a black swan event threat to bitcoin or if it's FUD. Would love to hear your thoughts.
your name is spelled LongTimeAgo and yet you didnt know that this news wasnt new ? how come .
tether is always being accused as a scam like every other stable coins for ex. ripple but that was a clear fud because if that was true stable coins like tether and ripple are now long gone on this world of crypto but sadly no they still exist happily on this space .
imho tether is not risky because once you swap your btc to tether you will have acquired a the power of stability . tether is safe if i were to ask
If anything this will be used as a tool to drop bitcoin price so the wealthy can get a deal at the expense of retail...
Who do you think are selling?Institutions got in between 5-10k and when it gets too risky then they are the first to sell. That's just how it is.
Is the fear that Bitcoin is only being propped up by USDT? If that's true, and USDT explodes, why would BTC price necessarily go down with it? The theory is that USDT has propped up Bitcoin enough for it to be the new equilibrium price.
The price would fall because several exchanges and Tether bought Bitcoin for free. People would get scared and sell - liquidity will take a heavy hit (Tether provides a really high percentage of liquidity). High buy orders would get bought up/cancelled fast, people who hold Tether cannot exchange it to anything anymore.
Is the fear that Bitcoin is only being propped up by USDT? If that's true, and USDT explodes, why would BTC price necessarily go down with it? The theory is that USDT has propped up Bitcoin enough for it to be the new equilibrium price.
If anything this will be used as a tool to drop bitcoin price so the wealthy can get a deal at the expense of retail...
Tether is also having a RICO charge and a missing funds accusation thrown at them.
https://www.google.com/url?sa=t&source=web&rct=j&url=https://www.courtlistener.com/recap/gov.uscourts.nysd.524076/gov.uscourts.nysd.524076.154.0.pdf&ved=2ahUKEwjA84Ty75PuAhUG_CoKHZG-Ay0QFjANegQIBxAB&usg=AOvVaw0v_A9CdhZrtYaDNF3xMeNO
Tether has to provide documentation to NYAG on 15.01.2021
https://www.google.com/url?sa=t&source=web&rct=j&url=https://www.courtlistener.com/recap/gov.uscourts.nysd.524076/gov.uscourts.nysd.524076.154.0.pdf&ved=2ahUKEwjA84Ty75PuAhUG_CoKHZG-Ay0QFjANegQIBxAB&usg=AOvVaw0v_A9CdhZrtYaDNF3xMeNO
Tether has to provide documentation to NYAG on 15.01.2021
Tether is good to me, though. But nothing last forever, especially when there are too many shady activities related to tether. As you see, Bitfinex is responsible for this currency because they claim that each tether is backed by a dollar. However, up to now, there is not much evidence about this. Moreover, it is centralized by an exchange. And this exchange can go bankrupt or collapse in a month or even a day.
It is always risky to hold on to something. Right now, most of the people use tether as a main currency of many popular pair. I hope they can continue to support tether so as it wont turn into ashes.
It is always risky to hold on to something. Right now, most of the people use tether as a main currency of many popular pair. I hope they can continue to support tether so as it wont turn into ashes.
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