reasons why someone wants to pay in tether and not bitcoin? - page 6.

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Quote from: sima_sara on February 11, 2023, 07:12:27 AM

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?

Price stability, at least that's what Tether promises. You pay/receive $100 in USDT, that would stay $100 for all eternity.
Unlike paying someone with $100 worth of BTC, if the price of BTC skyrockets, you'd regret letting go of that $100 worth of BTC that could've been now $200 worth.
And if you're on the receiving end, if BTC price goes down, your $100 worth of BTC might tank to just $50 worth. Though none of this would matter if you're a Bitcoin maximalist.

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Quote from: Peanutswar on February 11, 2023, 08:34:27 AM

It depends on the coin they have if you are using the tether most likely the fees are around ~5$...

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.

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Quote from: sima_sara on February 11, 2023, 07:12:27 AM

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?

Possibly he is worried tha volatility of the bitcoin. Example his buying a property and if he bought it using it, possibly the value would decrease, and if you bought it using tether, its still the same with the curtent value, yes thats normal and it can be considered like normal. Thats what usually the observation of some wishes to use a fixed value in currency than volatile asset.

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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.

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Quote from: Pmalek on February 11, 2023, 07:22:32 AM

The person only has tether and not bitcoin could be one reason.

I have a similar situation.

During last bull market I sold some ethereum in a Defi, and traded them for stablecoins. I used defi for privacy reasons.

Now I have some stablecoins and from time to time I like to sell some.

Usually I prefer bitcoin payments, but it might be handy to pay using stablecoins in my situation

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The main reason is value stability as Tether is pegged to USD. Bitcoin, on the other hand, can be very volatile even in short period of time. Some people, especially businesses, prefer that stability over the risk of funds being frozen.

Pmalek

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The person only has tether and not bitcoin could be one reason.
Maybe they are worried about short-term volatility if they are the ones receiving the coins. Bitcoin was worth $23.000/coin two days ago, but now it's only worth $21.000/coin. That's how a volatile asset behaves. Anyone who received BTC at $23k a few days ago have a 8-9% worse purchasing power right now. At the same time, USDT and USD hasn't changed much.

It is true that all centralized stablecoins can be frozen by their issuers no matter what address and wallet they are in. However, that doesn't happen to me and you. I have never heard a story of a guy getting his $200 USDT locked by Tether. It happened recently to addresses connected to the FTX scam exchange, and I am not going to shed one tear for them. I don't think normal holders need to worry about having their stablecoins frozen. Still, it's good to know that option exists.

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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?

Topic: reasons why someone wants to pay in tether and not bitcoin? - page 6. (Read 673 times)