What happens if USDT falls down? | Bitcointalksearch.org

Abiky

legendary

Activity: 3220

Merit: 1363

www.Crypto.Games: Multiple coins, multiple games

Quote from: Biznesmen on October 02, 2023, 02:13:33 PM

At least in all these years of trading in the crypto market, you know it's not dependent on one coin, so I am sure even USDT's fall will have some impact on investors but not the whole market. And also, USDC and USDT are fine. There is a lot of fud out there; USDT did a lot of sketchy things, but I will say USDT has a bigger market cap than USDC. There are a lot of people trying to take out your USDT, and maybe in the future it dies, but right now I don't think it's that big of a deal. I think a lot of it is a fud. But what I will say is that you can't short the market without usdt on the platforms that I use, so I am cool with holding usdt right now. In the future, that might change, but yeah, just don't get caught in the fud.

Not the "whole market"? Nearly every cryptocurrency has a USDT trading pair. I'm pretty sure a USDT crash will have long-lasting repercussions on the crypto market. Such an event will cause huge distrust among mainstream investors and traders alike. USDT has been holding well so far, but it's not guaranteed to last forever.

It's advised to cash out to Fiat (USD) whenever possible. No one knows when "the time bomb" will explode. Just avoid putting all of your life savings into USDT, and there should be nothing to worry about. Wink

Biznesmen

sr. member

Activity: 532

Merit: 251

Leading Crypto Sports Betting & Casino Platform

Quote from: EFS on August 05, 2023, 05:59:20 PM

If USDT goes, another stablecoin will take its place. Stablecoins are something that is necessary in this market and there's already a big competition in this field. Whichever firm actually issues a 1:1 backed stablecoin and publishes it with live proof, they are more reliable. While stablecoins were just emerging, there were groups that wanted to take advantage of it, but people have become more cautious after recent scams.
Don't fully rely on stablecoins, but choose only the best when using them in times of need. I also hold some USDT but the amount is nothing in my whole portfolio.

At least in all these years of trading in the crypto market, you know it's not dependent on one coin, so I am sure even USDT's fall will have some impact on investors but not the whole market. And also, USDC and USDT are fine. There is a lot of fud out there; USDT did a lot of sketchy things, but I will say USDT has a bigger market cap than USDC. There are a lot of people trying to take out your USDT, and maybe in the future it dies, but right now I don't think it's that big of a deal. I think a lot of it is a fud. But what I will say is that you can't short the market without usdt on the platforms that I use, so I am cool with holding usdt right now. In the future, that might change, but yeah, just don't get caught in the fud.

Abiky

legendary

Activity: 3220

Merit: 1363

www.Crypto.Games: Multiple coins, multiple games

Quote from: ShinyStarPrincess on September 16, 2023, 12:56:07 PM

If Binance or USDT crash, will be the Worst Blackswan of Crypto era, and a lot of altcoins will never recover of that

That's certainly true, mate. After all, USDT helps keep market liquidity afloat. BTC may be the reserve currency of crypto, but USDT is the one that manipulates everything. A collapse would lead market prices all the way down to "rock bottom". It will be a huge opportunity for new buyers, but a complete disaster for long-term holders. There's nothing we can do to prevent this.

Cashing out to Fiat (particularly the USD) beforehand might be the only way to minimize risks of loss as much as possible. You can never trust a stablecoin with shady practices. Who knows if a USDT collapse would be the "last straw" for investors to stop trusting stablecoins altogether? Just my thoughts Grin

jostorres

hero member

Activity: 2618

Merit: 586

Quote from: kevinzxz on September 16, 2023, 05:38:58 AM

In my opinion, if USDT falls, then investors will not believe in using stable coin anymore, but for cryptocurrency it will not have a big impact (in my opinion), because the one that influences cryptocurrency the most is Bitcoin, so as long as Bitcoin still survives and remains popular, then cryptocurrency will survive too, therefore I am more interested to investing in Bitcoin for the long term, because Bitcoin is safer and will definitely give me a lot of profit in the future.

The market might move with Bitcoin but that doesn't mean that there will be no effects if the most used stablecoin loses its peg. The market was even affected when UST lost its peg which made LUNA crash and the project went to zero in no time. So, the market will surely be affected because of that and there will be a lot of FUD and a lot of things going on because a lot of people will lose a lot of money because of it if the price of USDT goes down.

UST was not as popular as USDT, and it wasn't held by as many people as USDT but there were still millions of dollars that were lost when it depegged and if the same happens with USDT, we can't even imagine how much money will be lost and the market will totally shake because of this incident.

coinerer

hero member

Activity: 1484

Merit: 608

Vave.com - Crypto Casino

Quote from: Cornia on September 17, 2023, 09:12:54 AM

Quote from: Princess_Devi on August 05, 2023, 12:06:15 PM

We know that USDT is coming back from the most horrific situations from the past. But I want you to answer this, what do you do if someday without any signs USDT falls back to 0.1-0.2$? What do you do? Can you survive in this situation? What do you do if you put all your assets in USDT?

USDT is the most used and trusted stablecoin. If this stablecoin ever crashes, many people will suffer huge losses. Because many prefer to convert their assets to USDT. So I think instead of just converting assets to USDT, they should also keep them in BUSD, USDC and DAI.

BUSD and USDC will be the most popular stable coins if USDT fails. But for this huge amount of people will lose huge amount. Because USDT is held by many people. People lost billions of dollars due to UST crash, but if USDT crashes, people will lose trillions of dollars and with it people's trust in stablecoins will go away. And at the same time the price of other cryptocurrencies including Bitcoin will rise.

Cornia

full member

Activity: 1526

Merit: 110

Quote from: Princess_Devi on August 05, 2023, 12:06:15 PM

We know that USDT is coming back from the most horrific situations from the past. But I want you to answer this, what do you do if someday without any signs USDT falls back to 0.1-0.2$? What do you do? Can you survive in this situation? What do you do if you put all your assets in USDT?

USDT is the most used and trusted stablecoin. If this stablecoin ever crashes, many people will suffer huge losses. Because many prefer to convert their assets to USDT. So I think instead of just converting assets to USDT, they should also keep them in BUSD, USDC and DAI.

Godday

sr. member

Activity: 1610

Merit: 406

PredX - AI-Powered Prediction Market

Quote from: decodx on August 05, 2023, 03:20:36 PM

For me, USD serves as a transitional currency between fiat money and cryptocurrencies. I really don't see any compelling reason to hold a significant part of my portfolio in USDT or any other so-called stablecoin. Wouldn't fiat be a safer option in that case?

I also agree with you. And here I want to give my opinion that it seems like USDT will not fall because it will always be a popular coin that is needed for the transition between cryptocurrencies and FIAT money. And as several members here have explained, many people don't actually store their assets in USDT.

Macoach

member

Activity: 64

Merit: 32

I've never recommended or found a reason for anyone to hold stablecoins for an extended period. Personally, I prefer selling or converting them into other assets rather than holding onto them. However, if a widely used stablecoin like USDT were to collapse, it could indeed have a significant impact on the crypto market and create fear among investors. Fortunately, there are alternative stablecoins available, so it might not be a catastrophic event.

JeffBrad12

hero member

Activity: 3010

Merit: 538

Leading Crypto Sports Betting & Casino Platform

Quote from: cute nmp on September 16, 2023, 01:51:02 PM

Most of my savings in cryptocurrency are in usdt and Bitcoin, until now I never knew that the value of usdt can drop thought it will always remain stable forever. If Any Usdt crash ever happen then a lot of people will go bankrupt cause most don't know about this . let's hope it never does.

its more likely that if usdt is ever gonna be crashing its definitely gonna be caused by the fact that it got depegged after some people figure out something is wrong with the reserve, but its currently is all normal and safe though so don't really think about USDT falls down too much because I don't think it will.
the thing with USDT is that, the reserve are quite transparently disclosed to the public its also audited, so I don't think there will be any implications in the future.
added with the fact that many pictured USDT to be too big to fail though I don't believe such words but I guess it make little sense.

serjent05

legendary

Activity: 3052

Merit: 1281

Get $2100 deposit bonuses & 60 FS

Quote from: woez on September 14, 2023, 10:07:54 PM

Digital currencies are known to be more volatile than people think usually goes like this If USDT goes down BTC goes up, if BTC goes down USDT goes up Yes. prices for altcoins are soaring but maybe now it could be something else USDT is going up BTC is also going up and the word volatility is for the same reason.

USDT is pegged to dollar so it is not the USDT that goes down but the dollar itself. And when that happened since Bitcoin price is invesrsely proportional to US dollar, it is an obvious expectation that Bitcoin will goes up if US dollar has less purchasing power.

But if the USDT is depegged from the US dollar and keeps on crashing then the amount of USDT to buy Bitcoin will really increase.

Wiwo

hero member

Activity: 1260

Merit: 765

Top Crypto Casino

Quote from: Princess_Devi on August 05, 2023, 12:06:15 PM

We know that USDT is coming back from the most horrific situations from the past. But I want you to answer this, what do you do if someday without any signs USDT falls back to 0.1-0.2$? What do you do? Can you survive in this situation? What do you do if you put all your assets in USDT?

Just curious to know your answer. Don't say reasons that it won't happens, because I want to know if something this kind of thing happens in future what will you do?

If you ask my replay to this, I can say I will ok with it. Because I put my 20% into USDT right now. Why? because you know guys there is an Old saying Never put your all eggs in the same basket. Wink

Well to be honest with you, it won't effects the price of any coin and if you are holding Bitcoin at the time of USDT dropped as per say in the op, you still be at an advantage since the total amount of USDT vs Bitcoin will differs significantly, but if you are holding USDT as at the time of the crisis, that will be a devastating situation.

But then I believe we shouldn't hold so much of a particular coin if not bitcoin as far as cryptocurrencies are concerned.

Huppercase

hero member

Activity: 980

Merit: 559

Quote from: woez on September 14, 2023, 10:07:54 PM

Digital currencies are known to be more volatile than people think usually goes like this If USDT goes down BTC goes up, if BTC goes down USDT goes up Yes. prices for altcoins are soaring but maybe now it could be something else USDT is going up BTC is also going up and the word volatility is for the same reason.

Is it that simple mate? I don't think so my friend. People always says this but so far, so bad. It's the opposite of its that usually happens. Take a review look at UST, the tragedy will remain a mark on some peoples skin and a memory that will be difficult to forget, trust me. Even when some people are saying bitcoin crash due to the fact that UST was backed by some portion of bitcoin and other coins but what about that day USDC depeg? It wasn't and is not back by btc but when that happened, bitcoin was crashing during the weekend not until monday before they make an announcement of using some insurance funds to cover the loss before the depeg fully pegged back to the original value.

I don't wish to see USDT collapse but if that eventually happens, mehn some altcoins will die, many coins will not recover again, top altcoins will be lifeless and bitcoin will suffer the most but it wouldn't happen. However, that's not a guarantee actually, we should always look out for potential threats and deal with it before they turn to bigger problems that will result to investment losses.

cute nmp

jr. member

Activity: 1890

Merit: 3

Most of my savings in cryptocurrency are in usdt and Bitcoin, until now I never knew that the value of usdt can drop thought it will always remain stable forever. If Any Usdt crash ever happen then a lot of people will go bankrupt cause most don't know about this . let's hope it never does.

ShinyStarPrincess

newbie

Activity: 70

Merit: 0

Quote from: Princess_Devi on August 05, 2023, 12:06:15 PM

We know that USDT is coming back from the most horrific situations from the past. But I want you to answer this, what do you do if someday without any signs USDT falls back to 0.1-0.2$? What do you do? Can you survive in this situation? What do you do if you put all your assets in USDT?

Just curious to know your answer. Don't say reasons that it won't happens, because I want to know if something this kind of thing happens in future what will you do?

If you ask my replay to this, I can say I will ok with it. Because I put my 20% into USDT right now. Why? because you know guys there is an Old saying Never put your all eggs in the same basket. Wink

If Binance or USDT crash, will be the Worst Blackswan of Crypto era, and a lot of altcoins will never recover of that

ichsan ardi

full member

Activity: 672

Merit: 100

Tontogether | Save Smart & Win Big

Quote from: Princess_Devi on August 05, 2023, 12:06:15 PM

We know that USDT is coming back from the most horrific situations from the past. But I want you to answer this, what do you do if someday without any signs USDT falls back to 0.1-0.2$? What do you do? Can you survive in this situation? What do you do if you put all your assets in USDT?

Just curious to know your answer. Don't say reasons that it won't happens, because I want to know if something this kind of thing happens in future what will you do?

If you ask my replay to this, I can say I will ok with it. Because I put my 20% into USDT right now. Why? because you know guys there is an Old saying Never put your all eggs in the same basket. Wink

alright maybe if USDT touches 0.2$-0.5$ I won't panic. My total assets in USDT are only 10-15%, the rest is in the form of gold and Bitcoin, especially Bitcoin, because I keep my assets in BTC, all in a cold wallet. because I know that if I put it in USDT it will only make our money go somewhere or even go down, but what can we do, we still need it for transactions in other countries.

kevinzxz

full member

Activity: 1470

Merit: 105

👉bit.ly/3QXp3oh |🔥Launchpad on TON

In my opinion, if USDT falls, then investors will not believe in using stable coin anymore, but for cryptocurrency it will not have a big impact (in my opinion), because the one that influences cryptocurrency the most is Bitcoin, so as long as Bitcoin still survives and remains popular, then cryptocurrency will survive too, therefore I am more interested to investing in Bitcoin for the long term, because Bitcoin is safer and will definitely give me a lot of profit in the future.

aseprebel

full member

Activity: 630

Merit: 100

cogwise.io

Quote from: woez on September 14, 2023, 10:07:54 PM

Digital currencies are known to be more volatile than people think usually goes like this If USDT goes down BTC goes up, if BTC goes down USDT goes up Yes. prices for altcoins are soaring but maybe now it could be something else USDT is going up BTC is also going up and the word volatility is for the same reason.

The stability of stablecoins like USDT is essential for the broader cryptocurrency market. If USDT were to fall down, it could erode confidence in stablecoins and potentially lead to a loss of trust in other cryptocurrencies and the overall crypto market. Investors and users of stablecoins should be aware of these risks and consider diversifying their holdings or using alternative stablecoins to mitigate potential losses in the event of a stablecoin's fall in value. Additionally, staying informed about the regulatory environment and the stability mechanisms of stablecoins is essential for making informed decisions in the cryptocurrency space.

woez

member

Activity: 498

Merit: 48

Digital currencies are known to be more volatile than people think usually goes like this If USDT goes down BTC goes up, if BTC goes down USDT goes up Yes. prices for altcoins are soaring but maybe now it could be something else USDT is going up BTC is also going up and the word volatility is for the same reason.

Abiky

legendary

Activity: 3220

Merit: 1363

www.Crypto.Games: Multiple coins, multiple games

Quote from: Oilacris on September 02, 2023, 06:54:41 PM

We've seen on what happen or the issue on USDC on this year alone.

USDC's Depeg Laid Bare the Risks Traditional Finance Poses to Stablecoins
https://www.coindesk.com/consensus-magazine/2023/04/02/usdcs-depeg-laid-bare-the-risks-traditional-finance-poses-to-stablecoins/

Even with that slightest movement of USDT just in case then for sure tons of people would be losing up their money.
Considering on the current MC $82,911,788,716 the slight movement will cause disaster.

What would happen if it falls down or messed up? People would still trust blindly on other stablecoins that currently existing in the market before USDT.

Each stablecoin comes with its risks. After all, they're not backed by the government. You'd need to trust the issuer of the stablecoin (in this case the private company in control of the stablecoin) to maintain the 1:1 peg with the USD "forever". If the issuing company faces bankruptcy or the bank with the USD reserves collapses, you can say bye-bye to your investment for good. USDT has been lucky to maintain its USD peg for long.

On the other hand, USD Coin lost its peg for a short period of time. To be on the safe side, just cash out directly to Fiat (usually to USD) whenever possible. Who knows how low will the crypto market go after USDT's collapse? Just my thoughts Grin

Oilacris

hero member

Activity: 2996

Merit: 609

Quote from: |MINER| on September 01, 2023, 10:17:03 AM

I don't believe a hundred percent in any point in the crypto currency world other than Bitcoin. So I always try to hold most of my funds in Bitcoin. But sometimes something is held in USDT that is temporary. If we see many big alternative coins have fallen in the past few incidents. I hope no such incident happens with USDT, but if it does, it will undoubtedly be a huge disaster in the cryptocurrency world.

We've seen on what happen or the issue on USDC on this year alone.

USDC's Depeg Laid Bare the Risks Traditional Finance Poses to Stablecoins
https://www.coindesk.com/consensus-magazine/2023/04/02/usdcs-depeg-laid-bare-the-risks-traditional-finance-poses-to-stablecoins/

Even with that slightest movement of USDT just in case then for sure tons of people would be losing up their money.
Considering on the current MC $82,911,788,716 the slight movement will cause disaster.

What would happen if it falls down or messed up? People would still trust blindly on other stablecoins that currently existing in the market before USDT.

Topic: What happens if USDT falls down? (Read 734 times)