Topic: Tether Seems like Sound money (Read 401 times)

Just remember: "What goes around, comes around". Tether's rise to glory could all come down to an end if something unexpected happens in the future. After all, empires don't last forever. Who would've thought a big and mighty exchange like FTX would go all the way down the drain in an instant? The same can happen with Tether in the long run. I'd proceed with caution, especially when Tether has been unable to prove its USD reserves. The company has been increasing USDT's supply without regular audits.

Since stablecoins aren't backed by the government (in this case, the US government), you can lose everything without being able to claim back your money. You're much safer saving money (Fiat) in a bank. Especially if you're an American citizen. Those living abroad would have no other option but to stick with Tether if they want the security and stability of the USD without crossing borders. The future is unpredictable, so I can only hope for the best.

This possibility is kinda expected, they had to do that to be allowed to operate. Otherwise, they'd face a lot of problems with governments.

USDT is a good stable coins and it's the best we have in the crypto space among so many that are trying to get more adoptions just the like the USDC. TEther is also investing part of their funds in Bitcoin and have backups in most of the firms. I know that anything can happen in the crypto market but that should not make us to tarnish a good project now thatbwe are seeing the adoption and features we have and that are available for us.

The tether is a structured digital fiat that's projected to scale the values of crypto Coins on stabilities.
So by which you can't have it in your pocket as the traditional usdt under the control of the government since it can't be printed, then it's all hope to be digital currency as well as other cryptocurrencies.

Only a government that has the thoughts of deflating inflations in their countries can implement to indulge in finding investing in the Crypto markets in other to backup the state by which their fiats such as the usd can be valuable and also promotes economy rates.

As already written above, the main problem of USDT is the possibility of freezing.
But this is not relevant for all blockchains.

It cannot be denied that Tether is the best investment of all time, where Tether is very stable and its value always follows USD movements, and Tether is an altcoin that can be a security for crypto assets, where if the crypto market is experiencing chaos or the price value is very unstable, then tether could be the best solution to be able to secure your crypto assets, namely by exchanging your assets to tether.

Well even with the shrinking market share Tether is reporting profits for quarter 1. The new record profit for the biggest Stablecoin was $4.52 Billion just in the first quarter.

This profit comes from US Treasury holdings. And gains from Bitcoin and gold investments. https://cryptoslate.com/tether-reports-record-4-52-billion-profit-in-q1-despite-shrinking-market-share/
 

Interesting. This could pave the way for a "New World Order". Maybe Tether invested in the biotech company to force people to pay with implants in the future? It could mark the end of wearables (smartphone wallet app, smartwatches) and credit/debit cards as we know them. Since Tether's main stablecoin is USD-backed, such a move would help prevent the US from losing superpower status. Only time will tell.

While Tether's moves regarding its USDT stablecoin are shady, no other competitor has been able to take down its place in the market yet. USDT is by far the largest and most trusted stablecoin in the world. As long as Tether complies with the regulators, nothing else matters. For true sound money, I'd suggest you consider BTC instead. Even though it's volatile, the cryptocurrency can't be debased or shut down by anyone. Wasn't the whole point about eliminating middlemen and becoming your own bank?

Well Tether has now invested $200 Million into a biotech firm called Blackrock Neurotech. It is now the majority owner of this start up company.
The company creates brain to computer interfaces. And it implants them to allow people to control computer and neuroprosthetics.
https://finance.yahoo.com/news/tether-makes-strategic-investment-200-041317766.html

Of course. Ripple will bring its own stablecoin to try to compete against Tether/USDT. But it won't succeed, especially when the latter has first-mover advantage. Tether will remain the "King of Stablecoins" until it goes all the way down the drain in an instant. We can't say it's "sound money" when it's backed by a private company. Without investor protections or guarantees of any kind, you're on your own.

At least, we have plenty of alternatives to choose from. As long as you refrain yourself from putting all of your life savings into stablecoins, there should be nothing to worry about. Who knows how regulations will shape the stablecoins industry in the future?

Many governments do not legalize Bitcoin.  What else to buy bitcoins and use when needed!  They think that if they legalize Bitcoin, their country's currency will devalue and corrupt people will be able to easily convert their black money into white money.  Because of this, many governments do not want to recognize Bitcoin.  But it would be very good if the developing countries buy bitcoins with their reserve money instead of borrowing from other countries and sell it when the price of bitcoin rises and use it for the country's needs.  Because we know that during the bull run the price of bitcoin increases a lot.

We will have more of these stablecoins, it's reported that Ripple will also be launching their own stable coin so I don't know if that's the way for them to pump their own XRP coin as for sure there will be more buyouts of it to move the price just as what Tether did to BTC before.
Ripple to launch U.S. dollar stablecoin, taking on a $150 billion market dominated by Tether, Circle

Stablecoins are tied to the value of Fiat, so if the currency they're pegged to falls down in value, it's game over for "hodlers". In fact, stablecoins are much riskier than Fiat because there's no investor protections or guarantees of any kind. You're entrusting a private company with your funds instead of the government. I don't agree with OP's claims that Tether is "sound money". The issuing company has been shady from the start. No regular audits and constant addition of new USDT to the circulating supply (money printing) is a huge red flag for me.

Stablecoins are only useful for trading or when you want to protect yourself against short-term volatility. Did we forget what happened to Terra/LUNA's UST stablecoin? I hope there isn't another major collapse in the future, or investors will lose confidence in stablecoins for good. Lets move on, shall we?

Well yes I do agree with you. Tether is the best Stableoin to hold in your portfolio for alot of reasons.

They keep minting more of them. And have now just minted $2 Billion on the tron network. This is now $6 Million just in past month the Tether treasury has minted. 

https://crypto.news/tether-mints-billion-usdt-tron/

Thanks for stating the essence of stablecoins or tetter, as in the case study, their essence is just to fill a financial gap on the short term, as far as cryptocurrency goes, cryptos are converted to stablecoins to escape prices dump, so when they're in stablecoins, price dip will not affect the trader's capital. Capital is held on the short term in a stablecoins, pending when the owner wants to convert it for usage.

If a local currency is facing depreciation, instead of leaving money in the bank, where it's purchasing power will keep devaluing, a person can save his money by converting it to a stablecoin, to escape their currency devaluation, pending when he'll need to spend his money.

If stablecoins were truly-backed by USD reserves, they would've been a great option for those looking into USD alternatives. Especially people living in third world countries. But that's not really the case these days with most stablecoin issuers doing shady stuff behind the scenes (adding more units to circulating supply without regular audits). USDT is certainly not an option I'd consider to secure my money long-term. Competing stablecoin USDC can be trusted due to the company's regulatory compliance. Allowing customers to exchange 1 USDC to $1 USD when it lost its peg for a short time, was a great strategy to build trust within the stablecoin itself. I doubt Tether will do the same in the future.

Besides, the US national debt keeps increasing at an alarming rate. It won't be long before the real USD weakens until it loses its position as the world's reserve currency. Once that happens, you can say bye-bye to USDT and similar coins for good. Maybe it'll be time to move to Euro-backed stablecoins?

There are no reason to keep holding USDT for the long time as purposes of long term investment or other any reason. First of all no profits for it holding because it's stable coin, then if it's a centralized ecosystem so it will be risky to holding, specially i use it in P2P and sometimes to convert my altcoins that is my use cases in stable coin Tether.

Usdt is still the same thing as dollar,  it won't be a good decision for one to consider usdt as a good and longterm investment. Taking usdt as an investment is not really an investment,  it is just like keeping money in the bank not knowing that the money is losing value with time. I wont advice any one to keep  stable coin as an investment,  in cryptocurrency we have good investment like Bitcoin to be consider as a better investment outside cryptocurrency their are other good investment.

"Why not just sell your crypto directly to Fiat?"

Many people do not have that option, so Tether quickly caught on when most major exchanges offered it as a USD alternative. USDC started later, so Tether had a huge head start. I am really surprised the the big heap of rotting scam has not exploded yet.

Yes, USDC is a much safer bet.

Seriously? A stablecoin that constantly add new units into circulation without regular audits is considered "sound money"? Looks more like a scam to me. It won't be long before it all blows up. And when it does, expect market prices for major cryptocurrencies to go all the way down the drain in an instant. USDC is a much safer bet, since the company backing it is regulatory-compliant. Circle (the issuer of USDC) went as far as redeeming USDC to $1 USD for its customers even when the stablecoin lost the peg for a short amount of time. This helps build trust among investors and traders alike.

Tether/USDT won't provide proof of its USD reserves for some reason. I'd take it with a grain of salt, especially when we saw Terra/LUNA's stablecoin collapse in an instant. Why not just sell your crypto directly to Fiat? It's much safer this way.

We make decisions that doesn't affect us at the end. The prices of these projects will push to the moon whenever there's bull season, a home for these traders to rest their heads, only the patient ones will reap in good figures from the market. Stablecoins are very necessary in the market because it have played a major role in executing crucial tasks which other crypto have failed. When the market is currently in bear season, always advisable to swap your coins to stablecoine because that's the major means of been on the safer side.

I only use stable coins for emergencies like when the crypto market is congested and I can't seem to find any way to convert my bitcoins to fiat I might gonna ended up selling them later which gonna lower the price because the trend is over. I look for reliable stable coins and temporarily convert them so that I won't lose the original price when bitcoins reach its ATH at that time. This rarely happens to me anyway but my point is, this is the only thing I found stablecoins are useful because when it comes to investment, I rather choose to take the risk of investing in some traditional altcoins rather than these stablecoins which won't increase their price.

How will any agency protect stable coins with backing from the government?

When it comes to anything related to crypto, history has taught us anything is possible. Mixers getting seized, exchanges exit scamming, regulation, licences given/not given and many other things happening. Stable coins do not have the best reputation and the fact they can be seized (with or without legitimate concern) on the request of any agency means it is like money in the bank (which can be seized) but the opposite to cash in hand.

Why did you conclude governments will protect stable coins?

DAI did not maintain the price of one dollar continuously. The price of $0.97 continued for more than a day when there were problems with USDC. The price of DAI is linked to the price of USDC, which is linked to Circle and Coinbase, which means that if something happened to Coinbase, DAI would not be able to maintain the peg even if it diversified reserves of Bitcoin and Ethereum.

Voting in DAI makes it more decentralized compared to all stable currency pairs, which means it is difficult to freeze addresses compared to USDC and USDT, which is an advantage of DAI, but in terms of price, all stable currencies are almost similar in their need for the US dollar.

The question is whether it was really back up by dollar 1:1 as this was the point of contention, as Tether is running on fractional reserves and that's why everyone should be wary of it if they put all their crypto on USDT to somewhat stop the bleeding of Bitcoin and hedge it right now. And it's beyond our control, if they wanted to freeze your coins then they can do it. If they want to confiscate it for reasons only known to them, then they can and will do it. That's whey many or at least not on board with the whole stable coins market, and they might not be as 'stable' as we think as they are running on fractional reserves, which banks practices as well.

The thing is many have actually tagged it as a save heaven for their savings but just as others have said it is firstly not entirely pegged to the which makes it a bit baseless and if then it is, with the kind of economical challenges facing the dollar one should be rest assured that the USDT faces such risk also. Should the fiat dollar suffers inflation then so as the USDT. Holding it is just as holding the fiat just that it’s not in the bank.

You can actually not leave it on exchange but rather have it on your wallet, the problem will just be pegging it with another blockchain. For a long term hodl I will still go for bitcoin as a something that is an hedge against inflation

OP, i don't think you understand what USDT is and how it works, it is the same as the dollar because it is backed by it, but it is better you hodl the dollar because you cannot be sure of any USDT you have in your wallet, some of them are definitely not backed by anything but thin air. Having said that, another reason you should hold the dollar is that whatever you have of it in your bank account is insured up to a certain amount, but if something goes wrong for the issuers of USDT, you lose all your money; not to mention they can freeze your coins, lose their peg, and let's just leave it there, but you should know the better option now!

Tether is used to buy more Bitcoin but if it's about btc reserves, no they don't because it is said that they're being backed by real USD in value.
Well, being a stable coin no doubt that many are using them but remember the USTC and Luna debacle? It's the same reasoning you are telling but they did it in actual until they've collapsed.

USDT has many years of avoiding a full audit to prove real reserve levels. This thread is full of misguided and ill-informed ideas, and/or shills looking for suckers to believe them. Don't let them get your money, USDT can be 100% avoided with several alternatives available.

USDT has large reserves & has many years of trust earned. I trust it enough to leave a moderate amount of money parked on an exchange with limit buy orders set to buy crypto with but like anything, don’t leave more than you can afford to lose on any third party exchange. I trust USDT more than most crypto.

That's why they push now the stablecoins regulations and that's good thing when stablecoin holders will be protected it's still wild west but slowly btc start backing the stablecoins USDT first then USDC, i know USDC are more solid stablecoin but USDT have very good structure and trusted many traders including me.

Anyone who say we can not trust USDT or USDC...i would say it's a end of the crypto then, but Im happy that instutions and goverments working together to get off the debt economy into cryptocurrency backed currency like USDT , USDC.

Everything going good way stablecoins are future btc can't be money never but let's not forget the btc purpose to be digital gold and why you need digital gold? You need it to back up currency at least some fractions with btc.

Not long to wait those days when finally fdci and FCA UK Will protect stablecoins owners when rates Will be even higher than now and good yield of USDT,USDC holding on bank wallet or exchangers.

The bigger the theater gets, the more concerning it becomes. So much influence over the whole stablecoin category can be catastrophic for the whole industry if something bad happens with it. In case if there is any news about any government crackdown or sanction that can harm the project or the whole market due to USDT dominance over the altcoin market. It would be better if USDT, USDC, DAI and a few other stablecoins shared a similar dominance over the market. This would be good for the overall market in the long run.

I think that's a very good approach to get out of the well that is being dug on the basis of economical stability. Everyone should get financial freedom and that's a very good approach to get that.
But the reality is that the powers that are holdings and controlling this world will never let that happen. Power is something that is more addictive than drugs so parties that control most of the things going out here in this world through their diplomacy and wealth will never want someone to get the financial freedom. It's a sad reality but you know we need to work on it. We need to give people more clarity about it and once people will be aware of their rights than it could have a greater impact. There is also some issue in USDT as you maybe aware that USDT could be stucked in your decentralized wallet as usdt owners have full control over it

I agree, we are talking about a currency that is "owned" by a company, the moment the government says "shut down your operations" they are fully gone. So why would I trust all of my money (100+ billion by people nowadays) to a company that can be closed over a single night? It's literally the situation they are in right now and there is nothing that we can do about it. We should realize that this isn't acceptable level of security risk we would take.

I have owned it before, but not for long, just for transactions, and for short period of time, I never held it more than 3 months I think, not sure but it's probably around that much time at most. I do not like to keep it, and try to put it all on bitcoin whenever I can, or altcoins.

What will the bitcoin be backed with? Well, except for faith in future growth.

But this “debt” is 100% anonymous, allowing you to track the movements of your funds.

But for me, it’s just the opposite. So what is the reliability of USDT? Fiat is at least backed by the state's economy.

Paper currency? Are you seriously? The whole world is slowly moving towards getting rid of paper money, and are you dreaming of USDT paper currency? Your dreams are unrealistic.

It seems to me that you have absolutely no idea about the functioning of the economy.

To me, none of USD's (USDC, USDT, USDshit and so on) financial structures look solid.

Money backed by other money? You haven't forgotten that bitcoin is already money (A Peer-to-Peer Electronic Cash System).

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.