It's all guesswork. I'm sure there would be some volatility, but it's hard to tell which direction it would go. It might also depend how abrupt the collapse is. I suppose if it was a gradual collapse and people had time to get out of USDT, it might temporarily increase prices if people dump USDT in favour of BTC while considering which competing stablecoin they would use as a substitute. A more sudden implosion would likely cause a loss of faith in crypto by many speculators and that might lead them to exit in the direction of their national currency, causing a price drop.
Topic: IF USDT would collapse what do you think will happen to the BTC price? - page 7. (Read 1487 times)
December 13, 2020, 07:06:17 AM
December 13, 2020, 06:59:29 AM
This is something that isn't sufficiently discussed anywhere. Well, Tether and the exchange BitFinex have the same parent company. Most of the trades in bitcoin happen through tether (after customers turn their fiat into that). Yet, that time has gone when Tether or Bitfinex was a matter of concern for just bitcoin. Bitcoin has a diversified set of trading participants which include OTC trading desks and traditional banks getting in to offer BTC to customers. Then there are companies like Paypal. You can safely assume that even if Tether were to face some kind of regulation/ bans; bitcoin would survive as demand will quickly eclipse the supply (after maybe a dump).
What is more at risk are the plethora of ERC-20 tokens and their trading which has been linked to USDT since it moved to cross platform support. If that happens, these Alt-coins and the DeFi platform will quickly become unviable.
What is more at risk are the plethora of ERC-20 tokens and their trading which has been linked to USDT since it moved to cross platform support. If that happens, these Alt-coins and the DeFi platform will quickly become unviable.
December 13, 2020, 06:19:11 AM
Hey Guys
New here but not in the Space.
What's always annoying me about the whole Tether discussion is the fact that everybody that talks about the topic mostly assumes that if usdt collapses (not saying that it will) bitcoin would dump harder than ever before. While I can see that a lot of volume is through tether ( I would say its the majority) the collapse would by no mean be a small event. If you look back tho to end of 2018 when the whole Crypto Capital saga took place and usdt "dumped" into the .80s the only thing that really happened was that btc immediately spiked by a good amount simply because if you price btc/usdt if one collapses the other rises. So let's just assume that the day when tether would collapse actually comes and it's not just a few days of uncertainty. What side would win. A) everybody just want's to flee usdt (into btc) or B) everybody want's to flee crypto as a whole (through btc into "real usd" / coinbase)
New here but not in the Space.
What's always annoying me about the whole Tether discussion is the fact that everybody that talks about the topic mostly assumes that if usdt collapses (not saying that it will) bitcoin would dump harder than ever before. While I can see that a lot of volume is through tether ( I would say its the majority) the collapse would by no mean be a small event. If you look back tho to end of 2018 when the whole Crypto Capital saga took place and usdt "dumped" into the .80s the only thing that really happened was that btc immediately spiked by a good amount simply because if you price btc/usdt if one collapses the other rises. So let's just assume that the day when tether would collapse actually comes and it's not just a few days of uncertainty. What side would win. A) everybody just want's to flee usdt (into btc) or B) everybody want's to flee crypto as a whole (through btc into "real usd" / coinbase)
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