Topic: reasons why someone wants to pay in tether and not bitcoin? - page 5. (Read 684 times)
Very often the reason is that not all bitcoins pass aml checks, so some people find it easier to pay in USDT than in bitcoins. Another reason is that bitcoin commissions are sometimes off the charts and they are very slow. In some networks a USDT transfer can cost a couple of cents and transfer time will not take more than a couple of minutes. Bitcoin blockchain is slow and expensive. Now, because of increased volatility, bitcoin network commissions sometimes reach several dollars.
Guilt probably? Payong in Bitcoin is doubtful to most of the investors in this industry. Reason is simply profit potential. Hding will generate profit ofcourse, especially during market price increase. Which is why some users do prefer using dtable coins for transactions. In such they won't hesistate since they are simply paying the same amount of a certain value. This is also the reason why Bitcoin's emergence and adoption is being slowed nowadays. People would prefer using this chain as an investment because it is more beneficial. The tendencies of this technology being used for payments are probably on big transactions to avoid taxes across countries.
tether is traceable just like btc right? So there isn't anything involving that?
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What could be the reason for someone wanting to pay in Tether and not bitcoin?
Because Tether usdt is a stable coin. When you go for making a payment in bitcoin, you may have to queue for confirmation on the blockchain and sometimes it takes a lot of time. Since bitcoin is a volatile coin, its price fluctuates, so in most cases, tether became a choice for them to avoid this. After seeing your post I have visited coinmarket cap for seeing their both trading volume and I have seen that in 24h USDT volume is much bigger than Bitcoin. However, although the volume is high, the security of Bitcoin is much higher than Tether. So if you have lazy fund and you wanna hold in crypto bitcoin will be a best option for you. But you can use tether to avoid volatility for a transient transactions.
I have been using tether for some time now during my transactions because it is more stable if it is your wish to withdraw A.S.A.P.
I mean, Bitcoin is volatile and although one can make more gains during payouts rather than on the receiving end, the charges tether offer is low too. Other coins with lower volatility rates exist, tether has more customers in this side of the world.
I mean, Bitcoin is volatile and although one can make more gains during payouts rather than on the receiving end, the charges tether offer is low too. Other coins with lower volatility rates exist, tether has more customers in this side of the world.
Those who want to stay away from volatility would prefer stable currency over bitcoin. However, they are unaware of the possible dangers of receiving stable money. In the same way, people who want to pay with tether are ignorant of the danger of frozen funds. We could simply research the Terra stable coin drama. how a lot of money was lost by people. We must learn lessons from the past mistakes.
While majority of people have no idea that stablecoins can be frozen even if you hold them in your own non-custody wallet, certain amount of users are aware of the risks but they are using it nevertheless (the same goes for pro traders that are using CEX even though they know the risks). After all, using doesn't automatically mean that you are holding it for longer period of time and that's what is the most dangerous part. Btw not advocating for the use for stablecoins, just saying that if you use something doesn't automatically mean that you don't know the risks.
So it costs $1.7 on average at the current price to send them, it's certainly lower than the price you would need to pay to send a Bitcoin transaction on chain at the same speed today, that is to say a tx to be mined into the very next block.
It's not a fair comparison to start with. Bitcoin has a block time of 10 minutes on average, while Tron is 3-4 seconds. Despite the Bitcoin mempool being congested right now, I doubt you would have to pay more than $1 in total for an average-looking transaction involving Bech32 addresses for a quick confirmation (whenever that is). Multiple inputs and outputs is another think though.
Those who want to stay away from volatility would prefer stable currency over bitcoin. However, they are unaware of the possible dangers of receiving stable money. In the same way, people who want to pay with tether are ignorant of the danger of frozen funds. We could simply research the Terra stable coin drama. how a lot of money was lost by people. We must learn lessons from the past mistakes.
What could be the reason for someone wanting to pay in Tether and not bitcoin?
my understanding is that using bitcoin, you will not have to worry about your crypto being frozen.
Could there be any reason for tether being advantageous in such transaction?
Not having to worry about your bitcoin being frozen, a frozen account on a centralised exchanges as is tradition or customary to centralised systems while carrying out some sort of investigation is actually your whole coins be it bitcoin and what have you has been successfully frozen. Issuers are one thin and an advantage for bitcoin especially when having it deposited in a wallet.my understanding is that using bitcoin, you will not have to worry about your crypto being frozen.
Could there be any reason for tether being advantageous in such transaction?
One of the main reason why I feel has been the reason why people prefer being paid in Tether stablecoins and some other altcoins of value out there is the issue of fee and the time it takes to process. Same reason why some projects gets to anchor on all these other new blockchains.
Mostly Tron network(USDT TRC20) actually, so usually fees are the same as a Bitcoin transaction on average. Thus it's not anymore too much expensive to use Tether instead of Bitcoin.
Check my previous reply regarding the network prices. If you spend one native segwit UTXO and transfer your coins to another native segwit address at a time when the mempools are practically empty, you can get a quick confirmation for $0.05 or a bit more. You can't move USDT over Tron at those prices. You need 25-30 TRX, on average, for transaction fees. That's over $1.50 and closer to $2. More complex smart contract interactions cost up to 50 TRX in fees.
Last time I sent USDTs on Tron blockchain it was 10 days ago with Trust Wallet, and I've paid 26.3TRX/$1.68 according to Trust Wallet.
Currently from what I see on a Tron blockchain explorer it still costs 26 TRX on average to send USDT TRC20 while TRX costs $0.065 today. So it costs $1.7 on average at the current price to send them, it's certainly lower than the price you would need to pay to send a Bitcoin transaction on chain at the same speed today, that is to say a tx to be mined into the very next block.
https://tronscan.org/#/token20/TR7NHqjeKQxGTCi8q8ZY4pL8otSzgjLj6t
Mostly Tron network(USDT TRC20) actually, so usually fees are the same as a Bitcoin transaction on average. Thus it's not anymore too much expensive to use Tether instead of Bitcoin.
Check my previous reply regarding the network prices. If you spend one native segwit UTXO and transfer your coins to another native segwit address at a time when the mempools are practically empty, you can get a quick confirmation for $0.05 or a bit more. You can't move USDT over Tron at those prices. You need 25-30 TRX, on average, for transaction fees. That's over $1.50 and closer to $2. More complex smart contract interactions cost up to 50 TRX in fees.
There can be many reasons for that person not to pay you with bitcoin, or he doesn't have bitcoin to pay you.
Also maybe he doesn't want to pay you with bitcoin because the price is moving up and down too fast. So choosing a stable coin he thinks might be good for both of you.
Also maybe he doesn't want to pay you with bitcoin because the price is moving up and down too fast. So choosing a stable coin he thinks might be good for both of you.
It depends on the coin they have if you are using the tether most likely the fees are around ~5$ if they ignore the fee its more convenient to them than making another trade into bitcoin which consumes two times for the fees. So it depends on the user's preferences. Today due to the low transaction fee of the bitcoin this is most likely what they are using nowadays.
Binance rate
No you're wrong the $5 fee is only required if you are using the Ethereum network(USDT ERC20) or if you are using a dishonest exchange/platform charging high withdrawal fees but now most of platforms allow deposits from another network at least. Mostly Tron network(USDT TRC20) actually, so usually fees are the same as a Bitcoin transaction on average. Thus it's not anymore too much expensive to use Tether instead of Bitcoin. Binance rate
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What could be the reason for someone wanting to pay in Tether and not bitcoin?
my understanding is that using bitcoin, you will not have to worry about your crypto being frozen.
Could there be any reason for tether being advantageous in such transaction?
Tether is a centralized stablecoin and has low fees and faster transactionon time, aside from this feature I don't think there is any other reasonable reason why merchants will prefer tether to other coins. my understanding is that using bitcoin, you will not have to worry about your crypto being frozen.
Could there be any reason for tether being advantageous in such transaction?
But what about the banking systems with haven't
What could be the reason for someone wanting to pay in Tether and not bitcoin?
my understanding is that using bitcoin, you will not have to worry about your crypto being frozen.
Could there be any reason for tether being advantageous in such transaction?
It's only natural to send tether when that's what you only have. It is not possible to send Bitcoin when you don't have any Bitcoin at all. Bitcoin is indeed decentralized which means no person behind Bitcoin that is running and every person who runs a node will be a server if that's easy enough for you to understand. Let's say, I want to pay you tether but I don't have tether so I will pay using Bitcoin. The only thing that can frozen your Bitcoin funds is when you store it in a platform that is not decentralized like an exchange site. my understanding is that using bitcoin, you will not have to worry about your crypto being frozen.
Could there be any reason for tether being advantageous in such transaction?
Compared to banks USDT has lower chance of getting frozen, and you can send transactions to anywhere in the world relatively quick. The fees may be lower compared to banks, may be higher in the case of Ethereum which tends to have fee spikes.
So you could say that USDT is a middleground between Bitcoin and banks. You have more control and more freedom but not full freedom.
So you could say that USDT is a middleground between Bitcoin and banks. You have more control and more freedom but not full freedom.
What could be the reason for someone wanting to pay in Tether and not bitcoin?
my understanding is that using bitcoin, you will not have to worry about your crypto being frozen.
Could there be any reason for tether being advantageous in such transaction?
Whether you have tether or Bitcoin your assets can still be frozen especially when you save your coins on exchnages.my understanding is that using bitcoin, you will not have to worry about your crypto being frozen.
Could there be any reason for tether being advantageous in such transaction?
Speaking about the volatility of bitcoin, that is why people love to transact in tether and other stable coins than btc.
When btc slumps, it will still rise in the future, but as a business man, you may be on the negative lane when the money is needed by you and you will have any other choice than to sell at loss.
And if you're on the receiving end, if BTC price goes down, your $100 worth of BTC might tank to just $50 worth.
I don't disagree, but if you think like that, you will always find reasons why not to spend your bitcoins. The price is too low now, and I am sure it will be $30k soon. When it's $30k, it's still too low because it might go to $100k. I can keep going. Why should your fund got frozen with making payments in bitcoin...
That's not what OP said. Take another closer look:my understanding is that using bitcoin, you will not have to worry about your crypto being frozen.
OP is asking why someone would use tether (a centralized asset that can be frozen on any address) when they can use bitcoin which is censorship-resistant on a protocol level. 
Those $5 or a bit less is not the network transaction fees. It's the withdrawal fee you pay to Binance, in this example, for the luxury of them sending the coins to the address you want. Half of it (or even less) is what Binance pays in transaction fees. The rest is their profit.
For example, take the Tron variant. With the most recent Tron governance update, you now pay approximately $1.20 to $1.40 (equivalent in TRX) in network fees if you don't have enough Energy in your account. The beautiful people from Binance charge you $2.60 for the same action.
Binance and other centralized exchanges always do batch payments for their user withdrawals but they always charge same separated withdrawal fee on every user. By that I mean centralized exchanges earn a lot from processing withdrawals for their customers.For example, take the Tron variant. With the most recent Tron governance update, you now pay approximately $1.20 to $1.40 (equivalent in TRX) in network fees if you don't have enough Energy in your account. The beautiful people from Binance charge you $2.60 for the same action.
I see it unfair because I consider they already charge fees on tradings (taker, maker fees) and it does not makes sense to charge withdrawal fees because they need to secure their wallets (hot and cold), security, staffs, tools for those things. If they have a business, build an exchange, people join to use their service and pay fees for the service. Double charging many types of fee is unfair for customers.
What could be the reason for someone wanting to pay in Tether and not bitcoin?
my understanding is that using bitcoin, you will not have to worry about your crypto being frozen.
Could there be any reason for tether being advantageous in such transaction?
my understanding is that using bitcoin, you will not have to worry about your crypto being frozen.
Could there be any reason for tether being advantageous in such transaction?
Why should your fund got frozen with making payments in bitcoin when you're not sending on a wrong adreess or double spending, the only reason i cannsee to having this kind of preference for tether instead of bitcoin is when what you have is tether and you wouldn't want to have a drop in your balance to affect the rate you're sending due to transaction charges, so most people only prefer one coin against the other because of their charges fee when sending or converting them.
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