IMHO, I think the author has only expressed her opinion, But if we closely examine beyond that argument, Tether Ltd really looks suspicious, if the USDT was really back with I is to 1 ratio against the dollar, Tether Ltd should establish it with supported facts and evidence for the sake of that argument and remove any doubt.
But in terms of the Bitcoin price and value, if something happens on USDT and it will become zero, I think it will only temporarily affect Bitcoin price and eventually, it will return to normal asap. Just because USDT is just one of the many dollar-pegged cryptocurrencies in the market that's why it will not affect that much. But if that really happens the volume of USDT-Bitcoin pair will simply go to other Bitcoin- Dollar pegged pairs, like USDC, BUSD, Pax, etc.
Topic: USDT has broken the buck, once Tether goes to zero so does the real value of BTC (Read 214 times)
July 15, 2021, 05:37:12 AM
July 15, 2021, 04:19:06 AM
First of all, Tether won't go to zero. I don't like it at all, but if anything it's proven that it can survive regulations and for a company, it's actually too big to fail at the moment. Not that they can't get in trouble, but they can't go to zero without finding a replacement.
Secondly, when has the real value of BTC ever relied 100% on Tether? Or even the entire BTC market?
Literally, tether can go to zero because tether is a currency backed by reserves that resemble the value of USD which means tether holds the reserve assets for their tokens but we never know they actually hold reserves or they become something like fiat which are printing just paper and liquidating it into the market. Secondly, when has the real value of BTC ever relied 100% on Tether? Or even the entire BTC market?
July 14, 2021, 01:09:15 AM
We all know for a fact that tether is pegged to the dollar and here you say there is a possibility of it going to zero, that itself translates into fiat breaking which isn't possible atm because of several cash equivalents that form the basis of support of cash such as bonds, metals like gold and many others and not forgetting cash is a centralized asset so our governments can't allow fiat to crash..
July 13, 2021, 10:22:22 PM
Many investors choose to keep their savings in USDC and DAI. Do not store all your stablecoins in USDT alone.
USDC is gaining a lot in popularity because it has a fair audit, although the company can lock your coins in a wallet just like USDT.
DAI is the most decentralized stablecoin without blocking.
USDC is gaining a lot in popularity because it has a fair audit, although the company can lock your coins in a wallet just like USDT.
DAI is the most decentralized stablecoin without blocking.
A great percentage of DAI is backed by USDC and other centralized stablecoins so it carries some of the same risk as the alternatives. While DAI itself can't be frozen, it would be fairly easy for USDC issuers to freeze the collateral being used to back DAI if they were worried about illicit activity.
July 13, 2021, 09:02:21 AM
First of all, Tether won't go to zero. I don't like it at all, but if anything it's proven that it can survive regulations and for a company, it's actually too big to fail at the moment. Not that they can't get in trouble, but they can't go to zero without finding a replacement.
Secondly, when has the real value of BTC ever relied 100% on Tether? Or even the entire BTC market?
Secondly, when has the real value of BTC ever relied 100% on Tether? Or even the entire BTC market?
July 13, 2021, 05:24:57 AM
Well as people have been saying for months, Tether is crap, and the entire price of all crypto is traded in Tether, which just happens to have a CAP of $63Billion USD, but only has $2B of real assets ( aka cash )
So right now they just lost $3B ( now $60B ) that means if the first to leave already got their 'cash', then there is no cash left for the bag-holders ( HODLer's )
So right now they just lost $3B ( now $60B ) that means if the first to leave already got their 'cash', then there is no cash left for the bag-holders ( HODLer's )
There was always a lot of speculation and discussions going on about Tether since 2019 when they changed their wording from "every USDT is backed by a real USD" to "we have enough reserves to back every USDT with a real USD". I think that this change of wording really is a reason to be worried because the audits that bitfinex as the parent company of tether is presenting to prove that every USDT is still back 1:1 by a real dollar are not living up to traditional auditing standards.
What you are saying though that they only have 2B$ worth of assets but have 63B$ worth of UDST circulating would be extremly worrying if these would really turn out to be true.
I also switched from using USDT to USDC a while ago.
July 13, 2021, 05:11:00 AM
Many investors choose to keep their savings in USDC and DAI. Do not store all your stablecoins in USDT alone.
USDC is gaining a lot in popularity because it has a fair audit, although the company can lock your coins in a wallet just like USDT.
DAI is the most decentralized stablecoin without blocking.
USDC is nothing different from USDT but the only thing is it comes from reputed exchange and also BUSD is gaining the reputation in the recent days since Binance is forcing their customers to use BUSD for more perks so literally people are moving to other stable coins but as far as I know DAI is the best stable coin for long term since it backed by smart contracts of ethereum not any assets which we don't know that they are really exist or not.USDC is gaining a lot in popularity because it has a fair audit, although the company can lock your coins in a wallet just like USDT.
DAI is the most decentralized stablecoin without blocking.
Apart from DAI what are the ither decentralized stable coin exists guys?
July 13, 2021, 02:18:01 AM
I have not really thought of that, the idea of what will happen to Tether if all the exchanges decided not to accept that coin anymore. Maybe that will be a bad thing that might have some consequences with Bitcoin also. Yah, we always say that Bitcoin is not affected with Tether and what ever happens with Tether will not affect Bitcoin in any way but also we have to think that every action with a big coin should have some temporary setback to Bitcoin as well. Especially with one that is being used by millions of traders and investors.
July 13, 2021, 01:17:37 AM
What's tether business with BTC? I think you are wrong mate and here is why
1. BTC is a standalone crypto coin
2. Satoshi Nakamoto never created tether
3. Tether isn't the only stable coin that's paired with BTC on exchanges, we have BUSD, USDC and others
4. Tether has the highest volume among stable coins and it wil surely affects the market but to things will recover later
1. BTC is a standalone crypto coin
2. Satoshi Nakamoto never created tether
3. Tether isn't the only stable coin that's paired with BTC on exchanges, we have BUSD, USDC and others
4. Tether has the highest volume among stable coins and it wil surely affects the market but to things will recover later
July 12, 2021, 11:43:50 PM
Gold, silver, oil, wheat, sugar, cotton, platinum, nagtural gas, corn, copper ... simply everything is traded in USD. USD "is crap" - 25% of supply was printed last year. Does that mean that all commodity that are being traded in USD will go to 0 together with USD crash? Or rather they will all moon in USD price ??
USD in particular and fiat currencies in general. It is not a new story about inflation, hyper inflation was created by the pandemic.Goods market (wheat, sugar, cotton, corn, etc.) was risen by the pandemic. Fear of lack of goods and money printing from governments help wheat, sugar, etc. grow a lot in value. It's a bubble
Quote
USDT was a big thread before 2020. Now stablecoins like USDC, BUSD, DAI, TUSD, PAX are getting stronger and stronger and have 70% of tether marketcap now. USDC has bigger volumes in main trading pairs on DEX exchanges. Tether failure and thether FUD is my dream come true scenario. We will see huge dump and great buing opportunity. Price will recover very fast.
Stable coins are affected by the assets they are pegged with. It can be affected by USD, GBP, gold, etc but if fiat currency and the world economy has great recession, stable coins will not be safe. 
July 12, 2021, 05:02:50 PM
Many investors choose to keep their savings in USDC and DAI. Do not store all your stablecoins in USDT alone.
USDC is gaining a lot in popularity because it has a fair audit, although the company can lock your coins in a wallet just like USDT.
DAI is the most decentralized stablecoin without blocking.
USDC is gaining a lot in popularity because it has a fair audit, although the company can lock your coins in a wallet just like USDT.
DAI is the most decentralized stablecoin without blocking.
USDC is also popular since it has a few big names behind it, Circle, Coinbase and a few others.
US based business that have a lot to loose if it goes bad so people feel safer with it.
On the flip side, people who are afraid of "big government intrusion" tend to like it less.
I don't like Tether but I am not worried about it.
-Dave
July 12, 2021, 04:34:14 PM
Many investors choose to keep their savings in USDC and DAI. Do not store all your stablecoins in USDT alone.
USDC is gaining a lot in popularity because it has a fair audit, although the company can lock your coins in a wallet just like USDT.
DAI is the most decentralized stablecoin without blocking.
USDC is gaining a lot in popularity because it has a fair audit, although the company can lock your coins in a wallet just like USDT.
DAI is the most decentralized stablecoin without blocking.
July 12, 2021, 04:06:58 PM
Well as people have been saying for months, Tether is crap, and the entire price of all crypto is traded in Tether, which just happens to have a CAP of $63Billion USD, but only has $2B of real assets ( aka cash )
So right now they just lost $3B ( now $60B ) that means if the first to leave already got their 'cash', then there is no cash left for the bag-holders ( HODLer's )
There is no debate about the crap sentiment of USDT, i am expecting the market to get a huge shock when everything started falling because the entire market was dominated by USDT for a long time and even if they are not trustworthy people are still trading with them and the volume is really high. My only wish is that i do not want to see the market burn because of USDT now, let them enjoy the perks for a while before it burns So right now they just lost $3B ( now $60B ) that means if the first to leave already got their 'cash', then there is no cash left for the bag-holders ( HODLer's )
.If it burns it will send waves to every corner of crypto and I don't think you will be spared as well, (IF) and if nothing happens or a minor scratch then people will carry on as usual, there are other trusted stable coins out there 5hat btc is paired with bur usdt seem to be the most traded of them all, there are other options but many people still use usdt more which I fail to understand.
July 12, 2021, 03:55:04 PM
There are a lot of different stablecoins now. Tether's market share is steadily declining and there is not so much dependence on it anymore. There are many decentralized exchanges where USDT is not the dominant stablecoin. Even if tether is not fully backed they still have enough reserves for it to not be worth zero.
July 12, 2021, 03:26:49 PM
Well as people have been saying for months, Tether is crap, and the entire price of all crypto is traded in Tether, which just happens to have a CAP of $63Billion USD, but only has $2B of real assets ( aka cash )
So right now they just lost $3B ( now $60B ) that means if the first to leave already got their 'cash', then there is no cash left for the bag-holders ( HODLer's )
There is no debate about the crap sentiment of USDT, i am expecting the market to get a huge shock when everything started falling because the entire market was dominated by USDT for a long time and even if they are not trustworthy people are still trading with them and the volume is really high. My only wish is that i do not want to see the market burn because of USDT now, let them enjoy the perks for a while before it burns So right now they just lost $3B ( now $60B ) that means if the first to leave already got their 'cash', then there is no cash left for the bag-holders ( HODLer's )
. 
July 12, 2021, 02:39:52 PM
This is absolutely illogical, the collapse of Tether (USDT) can not lead to the collapse of Bitcoin This is absolutely illogical There are a lot of other stablecoins that are traded vs Bitcoin in addition to the real dollar on some platforms, surely in the event of a Tether collapse it will be a huge loss and will be affected Bitcoin price and people will lose the money they put there but there will be no bitcoin crash. Simply bitcoin can be exchanged for any other stable coin.
Gold is exchanged for real dollars in global stock exchanges. If the dollar collapses, will this lead to the collapse of gold? Of course not, because gold carries its real value and can be exchanged for any currency and will not collapse with the collapse of the dollar or any other currency.
Gold is exchanged for real dollars in global stock exchanges. If the dollar collapses, will this lead to the collapse of gold? Of course not, because gold carries its real value and can be exchanged for any currency and will not collapse with the collapse of the dollar or any other currency.
July 12, 2021, 02:10:18 PM
You would be stupid if you kept that coin in a wallet and thought it was worth one dollar. T/B/XXX USDT/B/C/XXX is a number to stabilize profits or losses due to sharp fluctuations in the cryptocurrency market, and it should be nothing more than that.
Generally, this currency has no value outside the trading platforms, so there is no problem as long as those platforms keep providing the value of that currency and enable you to withdraw it to Bitcoin. The real problem is not the capacity of the currency market, but rather if the platforms decide not to accept it.
Generally, this currency has no value outside the trading platforms, so there is no problem as long as those platforms keep providing the value of that currency and enable you to withdraw it to Bitcoin. The real problem is not the capacity of the currency market, but rather if the platforms decide not to accept it.
July 12, 2021, 11:45:52 AM
Well as people have been saying for months, Tether is crap, and the entire price of all crypto is traded in Tether, which just happens to have a CAP of $63Billion USD, but only has $2B of real assets ( aka cash )
So right now they just lost $3B ( now $60B ) that means if the first to leave already got their 'cash', then there is no cash left for the bag-holders ( HODLer's )
So right now they just lost $3B ( now $60B ) that means if the first to leave already got their 'cash', then there is no cash left for the bag-holders ( HODLer's )
USDT is indeed like a hanging pole but that alone does not define the worth of bitcoin.
We have many other stable coins like BUSD, USDC, TUSD etc... Apart from that, even if USDT crashes then I don't think that will drain bitcoins overall value.
The market might dump a lot in the state of a panic but then the money would just flow from one coin to another.
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July 12, 2021, 11:33:22 AM
Answering from the topic of this thread, it's never going to happen, this is because before tether came into existence, bitcoin and other crypto coins that were available then has always had a usd value faired to them all, though what I do think is that if tether losses or turns zero, the only way its going to as little as possible affect the bitcoin or the market in general is due to panic sellers or those who don't understand what crypto fully stands for, this type of people might think that since tether has lost its value, that the whole market if going to crumble, and this misunderstanding might cause them to start panic selling for fiat, and this will only last for a little moment.
So my conclusion is that tether loosing it's value isn't going of any significance, affect bitcoin or the market generally because like I said before, before tether came into existence, bitcoin has always had a usd value.
So my conclusion is that tether loosing it's value isn't going of any significance, affect bitcoin or the market generally because like I said before, before tether came into existence, bitcoin has always had a usd value.
July 12, 2021, 11:05:15 AM
If (or when) the curtain gets pulled up so that we see what is really behind Tether, just hope you don't have any crypto in exchanges. It will be a blood bath. It will mostly decimate the value of Eth, but it will drag down everything with it. The main problem will be the exchanges the are suddenly insolvent. At this point Tether is too big to fail. And when I say that I don't mean governments will prop it up. I mean no one will ask the important questions because the the truth will be the end of it.
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