Topic: Some of my personal thoughts about Tether and the roots of current problems. (Read 177 times)

I am rather sure that if countries would start to create their cryptos (like Venezuela, possibly Russia etc) they would start very soon to cheat themselves and have their cryptocurrency backed by absolutely nothing. Just like their fiat money.

Everyone already understands that Tether does not cope with the obligations. And you need to look for replacements. At the moment, there is simply no adequate replacement. Perhaps Japan this year will create a new coin and reinforce it with real money. Since I read in the news that they are planning it. Perhaps there will be some more tools. Of course, it would be easy for Ripple to create an alternative to Tether. But as we see, they do not seek stability, they do not need it, unfortunately.

There is a need to trade Bitcoin to a dollar, the real one. There is no need to invent a bicycle. It could be done if you will have a chance to send your USD from one exchange to another, to your wallet, card etc. Like a paypal for example. Tether is not printing dollars and never will. In the best case it will end up with a not stable price or all USDT holders just won't be able to grab their real dollars.

If tether will be erased ( 2$bln  MC by the way) by the government because of the shady actions it will pull the whole crypto market to the ground and traders will rotate their coins between exchanges in dogecoins lol.
That could be a very smart move from their side. The only thing that is needed is some sort of guarantees that the government  won't stop backing this currency because of any "unseen circumstances". Or they can create a crypto friendly payment system.

I disagree with you, there is need for Stable coin like Tether, the problem I have with the Tether team is now trying to be the central bank and printing money the way they like, the space has grown more than 1000% under a year and I believe the struggle to keep pace with this growth. I just hope there will be more transparency from tether as more news come to light

Who knows we might see Japan or some other big country to create a currency simmilar to tether, but this time it would be backed up by country. This can also have same result as with tether - to print more than there actually is. Although tether is just another company while if you have country bank behind particular crypto other people might look into using it more 

It's not only tether. Thing with USDT is that it is often taken as a metric for trading with fiat pairs since it is worth 1 dollar. There were other fud news like India banning btc and others as well as we have seen incredible raise last December which caused all of this. It was huge pump that occured within last few months so it is natural for situation to "calm down" by dumping the price. Manay manipulators as well.

I hardly doubt tether is the reason why the market crashed in the past few days. This dip was necessary, very necessary!

It is true that banks love to create problems for crypto-related projects, however if the solution which comes from the crypto-world is to create a currency, Tether, which is supposed to be one thing and the suspect then rises that it is entirely another thing, that we cannot blame banks any more, since there are more guilty culprits.

This is a bad idea from the very begining. Only USD is equal to USD with 1:1 parity. If you create a coun with a fixed price then you are risking to face deficiency if the demand will be higher then the supply that will cause the problem in trading (or people  will just create their own market where they will trade BTC/USDT with some extra fees). Also those coins should be backed 1:1 to the US dollar. Just take a look on all coins that are traded to USDT, if you combine their volume it is gona be insane! Looking backward to the uncontrolled printing of USDT makes me think that they don't have such big reserves (the number is by the way a bit over 2 billion $ for now).
I'm sure that the guys from Tether Limited and Bitfinex perfectly knew about that kind of things because they had this wonderfull point in their ToS untill they fased some serious problems:

The idea of having stable cryptocurrency is a great one, why? Well I do believe it could boost up wide acceptance and usage of cryptos, as now it is mainly used for people to play with and the feeling that if you pay for something today you might pay less or more in future for exact same thing.

Tether was able to make themselves as a standard to transfer your funds for "safe keeping usd value" and to get listed on many poplar exchanges which gives them value and volume. Thing is that it is much more complicated for crypto exchanges to add fiat, because there would need to comply with more rules and integrate their systems with banks etc. and since they already have built in platform for cryptos it is by far easier to simply put pegged crypto in.

Funny thing is you have a bot that somebody made which tweets every time tether "prints" money : https://twitter.com/tetherprinter lol

As it goes there are other cryptocurrencies that were made to be worth 1dollar but they all failed at least once since they don't have peg to them.

Those are Steem Dollars: the idea here was that community will trade it as 1dollar and all should work, but seems not since price started to behave like regular crypto.

Other ones are NuBits and bitShares which have some kind of collateral behind them, although these are not accepted in most places and surley won't be able to sustain stable value always.

I absolutely agree with you. Banks specifically create additional problems. Although it is just buying value. Now the US banks want to prohibit using their cards for operations with the crypto currency. But the banks do not interact with any of the altcoins. They simply carry out transactions to send dollars to the exchange and receive dollars from the exchange. What is not legal here? I do not understand.

Hey there! As the title says I would like to share my thoughts about Tether. I am not trying to FUD but in some places the whole story is undoubtedly negative.
Everyone probably already knows about the problems of USDT: uncontrolled printing, tether injections, problems with audit etc. For me the idea of creating a cryptocurrency  that will have a fixed price is a shitty idea by itself and it supposed to fail sooner or later. The question is Why is that coin appeared on the market? IMO the creating of Tether is a result of anti Bitcoin policy from the side of banks and traditional payment systems. Most of the crypto related transactions were either too slow or banks / payment systems were just refusing to deal with crypto related money. Meanwhile people had to trade BTC/USD, sell their BTC for USD during the hard times or just transfer their USD from one exchange to another. Most of the financial instruments are developed and work muck faster if they are able to work with each other and BTC is not an exception. Whats bad if Andrew will try to sell his BTC and get his money on his bank or PayPal account? No one no one has commited any crime. Commercial banks don't even have to cooperate with cryptocurrencies. The only thing they needed is to send real fiat money from party A to party B, that is their main duty. Just don't tell me that someone cared about the safety of your money, banks still deal with thousands of hyips, pyramides and other MLM structures. As a result of the pointless struggle with banks crypto community has to invent a bicycle and that was a Tether. My point is that these problems would not have appeared if banks didn't wanted to create them for us.
This is only my own view on the tiny part of the big problem. I moght be wrong somewhere so feel free to correct me or add your own thoughts.