Pages:
Author

Topic: What is the impact on bitcoin of tether unpegging from the dollar, if any? (Read 203 times)

hero member
Activity: 2100
Merit: 546
Leading Crypto Sports Betting & Casino Platform
out there, stablecoin is not only USDT, there are several similar stablecoins such as USDC, TUSD, BUSD, and many other stablecoins. so if USDT is depegged from the US dollar, what can be said, that is the risk of stablecoin that it can be depegged at any time. there must be concerns among investors, but it should not have a severe effect on bitcoin, maybe a slight decline in the market, but it should not last long. bitcoin is stronger now and it does not depend on altcoins.
I think USDT is not algorithmic based like the Tera and others which is the real ones that can depeg. I only heard that USDT is facing some legal issues lately but I think they will resolved it, like what it did on their other issues in the past. If you are one of those who have a USDT, and then it got in trouble, obviously you will complain. But yeah, BTC is also a different breed, that it may hardly get affected by the turmoil caused by this USDT.

Quote
so if USDT is depegged from the US dollar, what can be said, that is the risk of stablecoin that it can be depegged at any time.
I think you are saying that the problem of USDT in case, are going to get shared with the other stablecoins? But no, it doesn't work like that, since each stablecoin company is different from the other.
legendary
Activity: 3010
Merit: 1028
Leading Crypto Sports Betting & Casino Platform
out there, stablecoin is not only USDT, there are several similar stablecoins such as USDC, TUSD, BUSD, and many other stablecoins. so if USDT is depegged from the US dollar, what can be said, that is the risk of stablecoin that it can be depegged at any time. there must be concerns among investors, but it should not have a severe effect on bitcoin, maybe a slight decline in the market, but it should not last long. bitcoin is stronger now and it does not depend on altcoins.
there will be domino effect, some new stables nowadays are trying to mint their own version of stablecoin and peg it to USDT or USDC, if USDT or USDC fails, there will be domino effect that can cause other some defi based stablecoin to depeg as well.
there will be tons and tons of people losing money, UST was smaller than USDT yet the disastrous effect was massive.

the good thing though, so many stablecoin product from delta hedge stablecoin to algorithmic has been populating the market, if people can diversify their stablecoin portfolio they impact will be lower. but can't deny that most of people still put their money in USDT and don't even want to diversify to DAI for example.
full member
Activity: 868
Merit: 202
out there, stablecoin is not only USDT, there are several similar stablecoins such as USDC, TUSD, BUSD, and many other stablecoins. so if USDT is depegged from the US dollar, what can be said, that is the risk of stablecoin that it can be depegged at any time. there must be concerns among investors, but it should not have a severe effect on bitcoin, maybe a slight decline in the market, but it should not last long. bitcoin is stronger now and it does not depend on altcoins.
legendary
Activity: 3010
Merit: 1028
Leading Crypto Sports Betting & Casino Platform
Could tether be considered an altcoin? Or are stablecoins considered to be in their own category?

I believe tether still considered stable coin, even algorthmic stables with just delta hedging to mantain its value considered stablecoin why shouldn't USDT where from their reserve it's mostly made up of various reserve including cash, bonds, and some other things.

I believe tether is used primarily for defi, trading in and out of shitcoins, memecoins, NFTs, etc.
I never touched tether because there has always been a huge question mark about the quantity of real assets backing it.
To this day tether has not undergone any bona fide audit of its finances. Why is that? What are they trying to hide?

It doesn't help one's confidence in tether that it's headquarters are in the Bahamas.

Tether doesn't benefit bitcoin in anyway, so if it collapses I say good riddance.
As a bonus it would likely take the entire shitcoin casino down with it, a good day for bitcoin.

shitcoin can just use another pair of USDT collapse, if you see on solana for example, most of shitcoin or memes are using solana pair instead of USDT. on the other hand I believe the collapse could be more disastrous than luna's UST.
i don't even think it's a good thing, but yeah, the fact that USDT didn't get proper audit is concerning.
legendary
Activity: 3472
Merit: 10611
Tether appears to have depegged from the US dollar since about December 12 this month.
I'm going to take your word for it because I don't follow this news.

But was Tether ever pegged to the dollar? They never provided us with any proof of reserves and a 1:1 peg! People always assumed it. And it never mattered because the market makers decide that one unit of this centralized shitcoin should be worth 1 dollar and that is the price they trade it at indirectly.
The keyword here is "indirectly" because I have not seen a USDT/USD market but there are BTC/USDT, LTC/USDT, ETH/USDT, markets and so on. Meaning if bitcoin is worth $98765 people trade one bitcoin with 98765 tether whether it is worth $1 or not Tongue

Quote
I don't think tether is in danger of collapsing anytime soon, but being delisted from European exchanges
could be quite detrimental to the altcoin market, and would create short term volatility for bitcoin.
Delisting this shitcoin could cause some disruption in the altcoin market and a little in the bitcoin market. But I don't think it can cause panic sells specially in bitcoin mainly because the old FUD that tried to convince people that bitcoin only goes up because tether exists or is printed is long forgotten. Which means its demise should not have any significant impact.
legendary
Activity: 3024
Merit: 1132
Leading Crypto Sports Betting & Casino Platform
The market would crash for a while without a doubt. We would see people ending up in fear, and everyone going mad, and everyone trying to sell. However, if they are actually keeping it safe and not really losing money, then it should be backed, so eventually Tether as a company will end up getting all the sold Tether, and they would pay people and it will bounce back to pegged.

Just for a moment it would not be looking good, but some arbitrage traders would take advantage of that and would buy cheaper, and they would wait until Tether kicks in and starts buying it to get it back to a dollar, so they would profit. It's always the people who panic and sell and get out quickly who ends up losing the most amount of money in anything.
sr. member
Activity: 1400
Merit: 268
Enjoy 500% bonus + 70 FS
Tether depegged a bit lately to trade around $0.9983 after regulators' changes in some European exchanges led to concerns of possible delisting. Although it insists that its tokens are fully reserved, Tether, whose critics have continuously insisted on full independent audits to show transparency, now engages in attestations, a position that many would think all too short of accountability. If there are significant issues or delisting, Tether would likely bring short term volatility to the whole crypto market due to its wide use in trading between different cryptocurrencies. Its potential collapse could either bring relief to Bitcoin by weaning investors from depending on centralized stablecoins, or it might hurt by destabilizing trading and DeFi activities altogether. There continues to be an active debate over the role that Tether plays in crypto markets and the risks it imposes.
hero member
Activity: 2856
Merit: 667
I don't see the reason for calling USDC or USDT an alt.
Then what do you call them?
if you'll look at the https://coinmarketcap.com/.. you'll see it at the top 3 in marketcap, and since it belonged to the list with altcoins, then there's a reason you call it an altcoins. But honestly, its not a big deal because they could come and go but bitcoin will remain king.

Also, USDT is delisted only from Coinbase. All the other exchanges should continue to use it the same way as it was.
That's true.... however, that could be a start or a sign of possibility that other exchanges might delist them if they follow the same regulatory requirements with EU.
copper member
Activity: 196
Merit: 6
Could tether be considered an altcoin? Or are stablecoins considered to be in their own category?
There is little to no speculation about the price of a stablecoin. However, considering the vast, often empty, promises of a "stablecoin" supported by billions of dollars and the relentless claims from the altcoin space about coins that "will" possess "real-world utility", you can observe some similarities.

I don't see the reason for calling USDC or USDT an alt.
Also, USDT is delisted only from Coinbase. All the other exchanges should continue to use it the same way as it was.
hero member
Activity: 2310
Merit: 832
🌀 Cosmic Casino
Tether appears to have depegged from the US dollar since about December 12 this month.
I don't think tether is in danger of collapsing anytime soon, but being delisted from European exchanges
could be quite detrimental to the altcoin market, and would create short term volatility for bitcoin.

https://coinmarketcap.com/currencies/tether/


I believe tether is used primarily for defi, trading in and out of shitcoins, memecoins, NFTs, etc.
I never touched tether because there has always been a huge question mark about the quantity of real assets backing it.
To this day tether has not undergone any bona fide audit of its finances. Why is that? What are they trying to hide?

It doesn't help one's confidence in tether that it's headquarters are in the Bahamas.

Tether doesn't benefit bitcoin in anyway, so if it collapses I say good riddance.
As a bonus it would likely take the entire shitcoin casino down with it, a good day for bitcoin.

The reason USDT why Tether might be coming under fire in recent times is because they have refused to agree to a law that will make it considered a legal stablecoin but it would make it taxable for most people which is a major downside that most users don't want.

And no, it would not affect Bitcoin directly as exchanges will just default to USDC and continue business as usual even though USDT will be missed. 

Could tether be considered an altcoin? Or are stablecoins considered to be in their own category?

Always keep in mind that anything that isn't Bitcoin is an altcoin. Going that by logic, USDT is a stablecoin and an altcoin.

sr. member
Activity: 2828
Merit: 357
Eloncoin.org - Mars, here we come!
Tether appears to have depegged from the US dollar since about December 12 this month.
I don't think tether is in danger of collapsing anytime soon, but being delisted from European exchanges
could be quite detrimental to the altcoin market, and would create short term volatility for bitcoin.
europe is still a huge geopolitical market that tether would have lost so i am surprised to see that they did not comply and is now being delisted from exchanges that operate there it’s not the end of tether necessarily but it will definitely have some impact
Quote
Could tether be considered an altcoin? Or are stablecoins considered to be in their own category?
anything not bitcoin is an altcoins and under the general umbrella of altcoins are categories like memecoins or stablecoins both are still altcoins because they’re not bitcoin
hero member
Activity: 1666
Merit: 709
Quote
Could tether be considered an altcoin? Or are stablecoins considered to be in their own category?
In a broad picture tether is an Alternative coin that's because it's not Bitcoin but also it is or was a stable coin when it was pegged to the US dollars (one major characteristics of a stable coin is that it's pegged to the US dollars)

And what impact will tether being unpinned from the US dollars on Bitcoin. Well I won't say much impact would be felt on Bitcoin because tether isn't the only stable coins and people can switch to USDC for example as an alternative and there are still many holding Tether regardless.
legendary
Activity: 1512
Merit: 7340
Farewell, Leo
Could tether be considered an altcoin? Or are stablecoins considered to be in their own category?
There is little to no speculation about the price of a stablecoin. However, considering the vast, often empty, promises of a "stablecoin" supported by billions of dollars and the relentless claims from the altcoin space about coins that "will" possess "real-world utility", you can observe some similarities.
hero member
Activity: 2156
Merit: 803
Top Crypto Casino
Could tether be considered an altcoin? Or are stablecoins considered to be in their own category?
it is an altcoin that was created to mimic USD for the traders who are trading in crypto market and do not want to lose their gains when the market is in red.
I believe tether is used primarily for defi, trading in and out of shitcoins, memecoins, NFTs, etc.
Agreed with your input but now it has become one of the easiest and simplified ways to get paid if anyone is into freelance business or remotely employed by an employer in a different country. In 2021, I was working for a marketing agency wherein I was paid in USDT for my work. The amount got credited instantly and I was able to get the fiat amount in a jiffy.
I never touched tether because there has always been a huge question mark about the quantity of real assets backing it.
To this day tether has not undergone any bona fide audit of its finances. Why is that? What are they trying to hide?

No one cares when they get paid like me with a crypto that resembles USD in a way that many can question. it is evident that Tether is the only way to get paid for many freelancers who were earlier using Paypal as a mode of payment. As of now, USDT pay is the best way to get paid as it is a stablecoin using different altcoins blockchain with lesser fees that is better than Paypal payments.


legendary
Activity: 3318
Merit: 1185
Playbet.io - Crypto Casino and Sportsbook

How will bitcoin be affected? Bitcoin is not depending on USDT. People can converted to fiat directly or be converted to other fiat pegged stable coins instead of USDT.

I think it would have a positive impact on Bitcoin. With Tether currently having a $62 billion trading volume, if it were to lose its standing and a large portion of that volume shifted to Bitcoin, it would increase demand in the market. This could lead to a positive outcome, potentially reigniting a bullish run, especially since the market is currently cooling down.

If Tether gets delisted on major exchanges, other stablecoins might also be affected, as they would face the same regulatory scrutiny. Just think about it, if the largest stablecoin can’t comply, it’s even less likely that smaller ones with significantly lower volumes would be able to. This scenario could lead to a shift in how crypto markets operate, with Bitcoin possibly emerging even stronger.
member
Activity: 302
Merit: 46
NO SHITCOIN INSIDE
Tether, as a stablecoin, is technically different from altcoins, as its primary function is to provide stability rather than speculative growth. However, its lack of transparency and refusal to undergo proper audits have fueled skepticism. While it plays a significant role in the crypto ecosystem, particularly in DeFi and trading, its potential collapse could indeed destabilize the market short-term. Nonetheless, Bitcoin's long-term fundamentals remain unaffected, and some view the removal of unregulated tokens as a net positive for the crypto space.

It's astounding to me as to how tether can still be so prominent in this day and age given its lack of transparency and shadiness that has been widely known for years.
With $138B marketcap tether is second only to ethereum as the 2nd largest altcoin. Both are a testament to human stupidity.

How stupid does one have to be to invest good money into a memecoin or NFT anyway, crap that has no value beyond being a high-tech ponzi scheme.
And using such a questionable platform like tether to do it with?? It is beyond my comprehension.





Two things are infinite: the universe and human stupidity; and I'm not sure about the universe.
--Albert Einstein

legendary
Activity: 1512
Merit: 4795
Leading Crypto Sports Betting & Casino Platform
The price would be affected, the market will take a dip.
No, this is wrong. Bitcoin will not be affected. USDT will be affected as the price fall is the depeg, leading to high price in bitcoin if paired with USDT.

On liquidity?  Currently usdt has the highest not Bitcoin
I do not agree. I agree that USDT has 3 times more in daily trading volume but it also has more pair. Just like I posted before, most altcoins now are not getting paired with bitcoin, unlike before. They are now paired with USDT. Those are exchanges manipulation. Let them pair it with bitcoin and see what will happen. Also, I do think some fiat pegged stable coins meet the pairing requirements but not paired. FDUSD promoted on Binance is enough to know this. Bitcoin is different from shitcoins and USDT collapse will not affect its existence or price negatively.
sr. member
Activity: 518
Merit: 433
Playbet.io - Crypto Casino and Sportsbook
No it isn't a Good Day for Bitcoin.
How will bitcoin be affected? Bitcoin is not depending on USDT. People can converted to fiat directly or be converted to other fiat pegged stable coins instead of USDT.

Like FTT, If tether do get de-pegged the market would bleed and many shitcoin would go to oblivion and liquidity Would be highly affected
Unlike those days when all the coins also are paired with bitcoin. Although, most altcoins are still paired with bitcoin but more are paired with USDT. Yet bitcoin can give more liquidity than USDT.
The price would be affected, the market will take a dip.
On liquidity?  Currently usdt has the highest not Bitcoin
Especially in CEX where trading takes place.
Well many are already migrating to usdc little by little.
?
Activity: -
Merit: -
Tether, as a stablecoin, is technically different from altcoins, as its primary function is to provide stability rather than speculative growth. However, its lack of transparency and refusal to undergo proper audits have fueled skepticism. While it plays a significant role in the crypto ecosystem, particularly in DeFi and trading, its potential collapse could indeed destabilize the market short-term. Nonetheless, Bitcoin's long-term fundamentals remain unaffected, and some view the removal of unregulated tokens as a net positive for the crypto space.
legendary
Activity: 1512
Merit: 4795
Leading Crypto Sports Betting & Casino Platform
No it isn't a Good Day for Bitcoin.
How will bitcoin be affected? Bitcoin is not depending on USDT. People can converted to fiat directly or be converted to other fiat pegged stable coins instead of USDT.

Like FTT, If tether do get de-pegged the market would bleed and many shitcoin would go to oblivion and liquidity Would be highly affected
Unlike those days when all the coins also are paired with bitcoin. Although, most altcoins are still paired with bitcoin but more are paired with USDT. Yet bitcoin can give more liquidity than USDT.
Pages:
Jump to: