Topic: Tether Seems like Sound money - page 3. (Read 459 times)

Tether USDT is a stable coin, in cryptocurrency and use blockchain technology but it is another existent type of fiat currency. Like CBDC, if deployed by government and central bank, will be another existent type of fiat currency but they are all similar in no caps, inflationary scheme and can not be an investment choice.

Store of value can be temporarily but in long term and even short term like some months after pandemic, fiat currencies can lose their purchasing power a lot.

Tether is more risky than fiat currency, as it can depeg. It can be seized in your Tether wallet address but if you have fiat currency, in cash, no one can seize it except if they arrest you.

PSA: Most Stablecoins Can Be Frozen, Even in Your Own Wallets
Stablecoins: A Deep Dive into Valuation and Depegging

Are you trolling? In what way is pegged dollar better than actual dollar? It's literally just fiat money as synthetic asset. And usdt paper currency? What are you even talking about? If USD some day would crash, what value do you think usdt would have? Why would it matter if they can back that ustd value when all you are holding is usd value. Unless there is a tether bank run and they run out of that usd, so usdt would be worth even less then usd.

And democratic nation investing into most dangerous markets out there? How responsible will that look if btc crashes to ground? They are budjeting money that people's life is depending on. "Don't invest more then you can lose" is and advice most people give as an advice for noobs. Why would that not apply to any governments. Or is there a secret part of that budget that's for basically gambling? Who gave that a go ahead?

First the title with the obvious (some might say deliberate) grammatical error caught my eye. Then, after reading the OP I tried hard to understand it but failed. Even when I single out just a couple of sentences from the wall of text, I was unable to decipher it. One thing I understood is what I will comment on and this is USDT is not the best money/crypto/stable coin out there.

What on earth does this statement from you mean: "[USDT is best money out there right now because they backing up with btc reserves"

And what do you mean by this: "That's what the btc should be all about backing up the currency value for currency issuer."

USDT cannot be backed by Bitcoin or it losses the status of being a stable coin. It will also be unnecessary to use a coin which is backed by Bitcoin when you can simply buy Bitcoin.

As it is, Bitcoin cannot effectively replace fiat globally just yet and any country who wants to adopt it will be using it as an alternative currency and not the staple one.

You can't at any point in time vouch for the status of the reserves, it's mostly a game of trusting a centralized system.

Even the alternatives of USDT are not so reliable and we can trust on none of them for the long term. If I were to store my USDT at present i would still prefer USDT because the majority of the people trust it and the proof is that it has a market cap of over $100,000,000,000 and it is at number 3 in the coinmarketcap.   

After the Terra Luna crash, I do not trust the algorithmic stablecoins so putting everything in DAI is not a wise decision too. I think it is better to store your money in USD and not in the Crypto Stablecoins until there is some trusted better solution for a stablecoin. As a precaution, you can diversify your portfolio into different stable coins and not just in one stable coin.

I personally like DAI, the way it uses Ethereum to over-collaterize their decentralized reserves and keep their peg without having to rely on the holding of FIAT or FIAt equivalents like Tether and USDC do.
I would personally use DAI more often, but the fees within the Ethereum Network does not allow someone like me to easily interact with smart contracts and send smalls amounts of money without having to pay for significant percentages of such value.

I have also taken a look at USDC, in comparison to Tether,.USDC seems to have more trust or seriousness on its backing and it is less exposed to lacks of liquidity. Which one is the best, mostly depends whom one asks, I guess.

I would not personally consider Tether to be some kinds of investment or store of value in the long term whatsoever.

You've missed the point for USDT existing.

Tether or USDT is a tool, something that is created to satisfy a need. That is the need for something that has a stable value (as compared to cryptocurrencies otherwise there is nothing stable) that crypto traders can use to store their capital whenever they want to exit the market or something to use to quickly and cheaply transfer funds between exchanges.

Tether is just filling a gap. It is not supposed to and it can not ever be money. There are a couple of fundamental flaws that prevents it from becoming money. (1) it has no cap meaning it can never be store of value due to its inflation (2) it is pegged to a fiat that also has no limit and has inflation.

It also can not be pegged to bitcoin because it loses its whole purpose! In other words as long as bitcoin itself exists, you don't need something that is pegged to it 1:1 and has the same value. It would make no sense.

aren't they all the same?
there were several reports about USDT being frozen so that's another issue but same with all these stablecoins, they can also be frozen. there is trust for the DAI to be decentralized though.

there is just convenience in using the stablecoins in trading that's why we are all relying on this and not BTC/Altcoin which makes sense for most of us to be using stablecoin. but if the hyperinflation scenario however is to be considered, I wouldn't put all my eggs in one basket.

If the dollar is debt structured, then USDT is tied to the value of one dollar, but in reality it is tied to promises and there is not even 1% of the reserves from net deposits. USDT is very bad and you should not consider it as a long-term investment. If you want to invest in a stable currency, there are better projects than PYUSD USDC DAI.

They buy btc to back up their currency USDT so that's what the money should be backed by btc. The digital gold.
Think about the fiat currencies every dollar bill in your pocket are debt the USDT seems much more reliable then fiat, USDT can and it should decouple of dollar If the dollar value don't go up.
Me and many others like to see one day USDT paper currency also. I rather hold new dollar (USDT) Then just the current dollar wich is debt structured.
The path to financial freedom comes first we need to get rid of the debt based economy so the real way Will be USDT backed by digital gold the btc and other digital currencies.
Goverments also can function better If they buy btc and whatever budget they need , for example to fix health care or to build up something then they might sell some part of their btc to get USDT instead of using debt and making inflation high they can use sound financial system.
So instead of taking the loan goverment can buy dca way BTC with tax payers money and If btc price goes up they can sell and with that funds they can a lot good things in society.
I don't know about USDC but USDT financial structure looking more solid.
USDT is best money out there right now because they backing up with btc reserves.
That's what the btc should be all about backing up the currency value for currency issuer.