Why hold Tether when you can hold Cash?

betswift

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Quote from: goldkingcoiner on September 01, 2024, 04:30:54 PM

Quote from: o48o on September 01, 2024, 03:09:41 PM

Quote from: goldkingcoiner on August 31, 2024, 03:33:15 PM

Quote from: BitcoinBarrel on August 23, 2024, 01:16:42 PM

I never understood the logic. Anyone use USDT? Why? Huh

Because it is decentralized and private. The bank cannot freeze your USDT (unless you store it on a third-party wallet like a crypto-exchange).

It's not either decentralized or private. I am not sure where you got that impression from. Transactions are transparent and there's no anonymity, it's pseudonymity at best before you cash it out when you get kyc:ed if needed, and if that wallet is blacklisted by tether.

I mean you don't have to worry anything if you aren't blacklisted or don't get involved with money laundering, but saying it's private and decentralized is quite misleading.

Huh... So it is.

This whole time I thought it was decentralized... Guess I was wrong. Thanks for clearing that up!

I would like to change my statement to: USDT and other centralized tokens/coins should be avoided like the plague.

edit: but also, you are confusing privacy with anonymity.

We learn something new as much as we live Grin

mdzahed134

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Tether USDT is very convenient assets in crypto, you can exchange it to another crypto, And you can spend it to buy anything from any country as payment it’s really too easy to use. How much cash you can hold in your home? Not too much because it’s about question of security of your money, and i also feel insecurity to keep hold big amount in banks, So i have no other best alternative way as like hold USDT.

bastian466

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Tether is very useful for me who often transfer crypto assets between exchanges to reduce transfer fees, I always use tether and many network options to see which one has lower fees, why I do that the goal is to make exchanges to fiat money I have to jump between exchanges

o48o

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Quote from: goldkingcoiner on September 01, 2024, 04:30:54 PM

-cut-
This whole time I thought it was decentralized... Guess I was wrong. Thanks for clearing that up!

I would like to change my statement to: USDT and other centralized tokens/coins should be avoided like the plague.

edit: but also, you are confusing privacy with anonymity.

I wouldn't go that far, as they have their use cases, and it's not like we would stay away from fiat money either. At least i constantly need that to pay my bills and act with he real world.

And maybe i am confusing anonymity with privacy, depending what you mean by privacy. To me, with privacy of your transactions would be confidential, and currently they are public in the blockchain.

While no one outsider can easily figure out owners of wallets, those wallets can be linked with IDs if some official, who has access to kyc data, decides to investigate origins and trail of that usdt (Like they are doing in many cases, as that's a part of AML laws now).

goldkingcoiner

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Quote from: o48o on September 01, 2024, 03:09:41 PM

Quote from: goldkingcoiner on August 31, 2024, 03:33:15 PM

Quote from: BitcoinBarrel on August 23, 2024, 01:16:42 PM

I never understood the logic. Anyone use USDT? Why? Huh

Because it is decentralized and private. The bank cannot freeze your USDT (unless you store it on a third-party wallet like a crypto-exchange).

It's not either decentralized or private. I am not sure where you got that impression from. Transactions are transparent and there's no anonymity, it's pseudonymity at best before you cash it out when you get kyc:ed if needed, and if that wallet is blacklisted by tether.

I mean you don't have to worry anything if you aren't blacklisted or don't get involved with money laundering, but saying it's private and decentralized is quite misleading.

Huh... So it is.

This whole time I thought it was decentralized... Guess I was wrong. Thanks for clearing that up!

I would like to change my statement to: USDT and other centralized tokens/coins should be avoided like the plague.

edit: but also, you are confusing privacy with anonymity.

o48o

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Quote from: goldkingcoiner on August 31, 2024, 03:33:15 PM

Quote from: BitcoinBarrel on August 23, 2024, 01:16:42 PM

I never understood the logic. Anyone use USDT? Why? Huh

Because it is decentralized and private. The bank cannot freeze your USDT (unless you store it on a third-party wallet like a crypto-exchange).

It's not either decentralized or private. I am not sure where you got that impression from. Transactions are transparent and there's no anonymity, it's pseudonymity at best, until you cash it out and get kyc:ed if needed. And if that wallet is blacklisted by tether, you can say goodbye to your money.

I mean you don't have to worry anything if you aren't blacklisted or don't get involved with money laundering, but saying it's private and decentralized is quite misleading.

Godday

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Quote from: libert19 on September 01, 2024, 03:23:07 AM

Reasons i prefer stablecoins is due to anonymity. You can have $100k in stablecoins, move $50k here and there, no one would bat an eye, meanwhile there is $1k movement in your bank account and you'll get a call, I understand the security aspect of it but still.

And we can also send $100k abroad without having to verify for a few days. I think stablecoins have a high level of privacy and ease of transacting in large amounts. Although it will not be anonymous if you withdraw it in cash but I prefer stablecoins in terms of transaction speed. On the other hand stablecoins can be my safe haven when cryptocurrencies are crashing. I can store my crypto assets in stablecoins, and buy crypto assets back when the price is normal.

mich

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Well Tether is the best stablecoin to have if you like to invest in them. I think it is alot safer to have Tether then cash because we can lose cash. And it is hard to lose Tether only if you are new to it and lose it but it will not happen alot of the times.
For me I do not like to have alot of cash in my bank account. I just do not like how the banking system does work. And with Tether we can be more anonymous with our crypto. And as another said we can send our tehter easier then we can send fiat.

libert19

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Reasons i prefer stablecoins is due to anonymity. You can have $100k in stablecoins, move $50k here and there, no one would bat an eye, meanwhile there is $1k movement in your bank account and you'll get a call, I understand the security aspect of it but still.

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Quote from: lixer on August 31, 2024, 02:23:16 PM

..yes you can transfer a physical cash online. We have lots of options now and they are now more easier compared to before when we can mostly use a money remittance centre. One example of that would be the kiosks that are installed in some mini shops.

Remittances is not sending cash online for you, even banks cannot do that.
Again you cannot transfer cash online. You are referring the digital money or digital cash that can be transfer electronically that those remittances are kind of "converting" those number from cash to transfer electronically. Even google or any AI chat will be amazed if you tell them you can possibly directly send cash online.

Wakate

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Quote from: BitcoinBarrel on August 23, 2024, 01:16:42 PM

I never understood the logic. Anyone use USDT? Why? Huh

The same way we are using the usdt same with the way we hold other cryptocurrency. Usdt is a stable coin just like the USDC we hold to avoid the volatility of the market. Just imagine you have some Bitcoin holdings and you noticed that the price of Bitcoin want to go bearish for a little while. The only option that we are left with is to convert it to stable coin so we don't have any draw down. Since the emergence of stable coins, it has become very easy for users to convert their coins to avoid the volatility of the market.

goldkingcoiner

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Quote from: BitcoinBarrel on August 23, 2024, 01:16:42 PM

I never understood the logic. Anyone use USDT? Why? Huh

Because it is decentralized and private. The bank cannot freeze your USDT (unless you store it on a third-party wallet like a crypto-exchange).

lixer

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Quote from: PX-Z on August 24, 2024, 03:06:34 AM

Hint to your question. Can you transfer cash online? Can you buy anything of your cash online? Just a simple counter question to simplified why other people hold USDT or other stablecoins, plus it's used for trading to hold someone's funds to avoid getting affected of the crypto's volatility.

I'm not the OP but if I'm going to respond in your questions; yes you can transfer a physical cash online. We have lots of options now and they are now more easier compared to before when we can mostly use a money remittance centre. One example of that would be the kiosks that are installed in some mini shops.

We can as well find it in the malls. Cash is more acceptable than in cryptos such as Tether and online shopping sites are on the rise now and with that, they sell almost everything now that we can ever imagine. You got a good answer on why a person can hold or use a stablecoin. Apart from the fact that it was stable, it is like a fiat where it is being accepted the most, hence it is usually present on the exchanges as a trading pair for the most cryptos.

justdimin

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Quote from: BitcoinBarrel on August 23, 2024, 01:16:42 PM

I never understood the logic. Anyone use USDT? Why?

I agree with this, the exchange I use allow me to hold fiat, and while I do prefer bitcoin over fiat, I also prefer fiat over tether as well. Just because you are a crypto person, doesn't mean that you have to support tether, they are not really doing anything good for the crypto world, they are just a few people who own a company and tell you that they have 1to1 backing of all the dollars and they are just giving you a fake version.

Literally the only reason why they are preferred like this is because they are at every exchange, remove tether from exchanges, get them delisted and it is not worth a dime and everyone would crash withdraw all their money from them. This is why just because you like crypto, doesn't mean you have to support this stablecoin.

X-ray

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stablecoin simplify interacting with dapps, how you can interact with dapps if your money isn't digitalized, surely the money won't magically turn into its digital form, that's why USDT exist.
it just gives us a coin that's stable and pegged to real money so we won't risk our money with the inflation while still retaining capability of remittances and smart contract interaction.
which otherwise can't be done without abiding to ERC20 standard protocol or any token protocol out there.

it's not like it's that different anyway, holding cash or tether, speaking from the value, it's literally pegged 1:1 though the reserve asset isn't entirely in USD.

o48o

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Quote from: BitcoinBarrel on August 23, 2024, 07:34:54 PM

It still doesn't make sense for there to be a "stablecoin" based on a fiat currency which is prone to inflation.
-cut-

So what's your best guess? Why do you think people like to trade alts against it in dexes? Do you really believe that others just would be that ignorant that they wouldn't know about inflation?

You really think that we should rather use only banks to transfer our money to Cexes and back and hope that money gets transferred on weekends too? Or that we just use eth/sol/whatever on dexes instead of usdt? Sure, you are welcome to do it and there are people who do that, but dissing someone for wanting to use usdt is just weird. Imho it's way more simple to deal with and easier when you are doing taxes too.

And it definitely makes more sense during bear market to have something stable around that don't do -70% while you sleep.

PX-Z

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Hint to your question. Can you transfer cash online? Can you buy anything of your cash online? Just a simple counter question to simplified why other people hold USDT or other stablecoins, plus it's used for trading to hold someone's funds to avoid getting affected of the crypto's volatility.

re-start

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Many people outside of the US consider buying USDT as an investment. Because USDT can be easily converted to other cryptos. They believe that investing in USDT is better than holding their local currency because local currencies tend to lose value due to inflation and buying USDT is a way to preserve the value of their assets.

kentrolla

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There are lot of reason wherein handy for trading is the first reason as you cannot trade using USD within minutes when you see opportunity as depositing it in the exchange or using USD or any fiat will take time and possibly you may lose out on the entry point.

Secondly, you don't pay any charges to hold usdt or any stable coins like bank charges or withdrawal fee and it's not feasible to always carry cash.

Third most important thing which applies to the users of other nations excluding USA as they get profit just by holding USDT as there are countries whose currency is detoriarating like India and Pakistan hence it's safer for people from those people and profitable as well.

Also, you can stake USDT and earn wherein if you hodl fiat in bank you will not get that much .

MAAManda

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Quote from: BitcoinBarrel on August 23, 2024, 01:16:42 PM

I never understood the logic. Anyone use USDT? Why?

Opening your profile, it turns out you are from the USA, where access to stablecoins is easier than in third world countries. So far, I agree with @Orpichukwu's opinion, we have the same concern about this.

Quote from: BitcoinBarrel on August 23, 2024, 07:34:54 PM

What's the matter yall? Are you afraid of a little market action?

Still with the stablecoin, right?

In line with the previous opinion, this is a form of how we mitigate the possibilities that occur in the market, so that when there is small or large action in the market, we can quickly have the choice to go with the flow or not.

BitcoinBarrel

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It still doesn't make sense for there to be a "stablecoin" based on a fiat currency which is prone to inflation.

What's the matter yall? Are you afraid of a little market action?

Who holds coins on exchanges anyways? That's crypto newbie 101.

Any money you might save from a market downturn you will lose in a market upturn and vice versa. The market never sleeps either, so you could be in dream land while the market surges and your stable coins are sitting there like a frog on a log.

ultrloa

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Quote from: BitcoinBarrel on August 23, 2024, 01:16:42 PM

I never understood the logic. Anyone use USDT? Why? Huh

Maybe because they want to make it stay so that when there's good opportunity comes they have balance available to used and sure they would never miss those good chance to gain something. There's lots of things happening online and we need to prepare on those matter that's why there are some people choose to have USDT.

Fiat is easy to grab and we don't need to spend much effort to spend it and acquire it. Also we are in crypto scene where USDT is important asset for those people who afraid of volatility since stable characteristic of this coin give some relief for people who's afraid to experience a dump while holding a crypto.

malcovi2

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USDT is easily transferrable/converted to other cryptos while fiat it can take some time and 3rd party processing can hold your payment which makes it inconvenient.

Hispo

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Besides all the reason people have mentioned here about how easy it can be for people trading and doing e-commerce to access liquidity to use USDT instead of cash, I would also add a little fact about holding using USDT and personal security: we you live in a country where security and law and order is strong for all citizens, it would make sense people would not be afraid to hold some important amount of cash in their home, ottherwise, when we talk of developing countries like mine, it is safer and more discreet to keep savings in cryptocurrency/Stablecoins, either on an exchange or within a hardware wallet.
There are several reasons why people prefer to have USDT in their accounts rather than physical cash in their homes or wallets.

We could also argue whether USDT is fully backed or not by USD equivalents or people should move their wealth to a different Stablecoin, but that is a completely different discussion to have, for other occasion.

Ruttoshi

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Quote from: BitcoinBarrel on August 23, 2024, 01:16:42 PM

I never understood the logic. Anyone use USDT? Why? Huh

This is because USDT is crypto and we are in a crypto era where everyone wants to be in the crypto space. It is only crypto and you can use to convert into another crypto in a exchange. If you are holding USD fiat, you pass through buying crypto with fiat via p2p, but if you have a USDT already in your wallet or exchange, you can swap it whenever you want.

Trading involves buying and selling and USDT is is Ed for that not fiat.

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I think that is because you still need to do some conversion and transferring when you have cash. While with Tether or with any stable coins, you're ready to transfer it anytime and trade it for any other crypto that you wish to have. So, that's one of the advantages of having your cash into Tether. But having cash has also its advantages specially if you wanna spend it on grocery stores, shops and wherever you go.

Not all stores are accepting Tether and as we all know, many still prefer to get paid in cash instead of cryptos. They have cashless transactions but that's still in fiat. It is what I think that Tether(USDT) is mostly for trades, buying the dip and cashing out profits to make it lesser volatile while waiting for another opportunity to come or when the market seems to both high and less volatile.

But the question is, instead of holding Tether and cash why not hold BTC?

Reatim

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Quote from: BitcoinBarrel on August 23, 2024, 01:16:42 PM

I never understood the logic. Anyone use USDT? Why? Huh

It’s for easier buying of cryptocurrencies in exchanges.

Time is crucial especially if you are trading. You would want to enter the market on the perfect time which is when the price is dropping. It’s just much easier if you already have some USDT on your exchange ready to be bought as crypto.

o48o

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Quote from: BitcoinBarrel on August 23, 2024, 01:16:42 PM

I never understood the logic. Anyone use USDT? Why? Huh

Because you can't hold cash basically on usb stick and trade it against altcoins in DEXes. I guess those are the reasons most people are using it for. And maybe yield farming.
Obviously if you don't plan to do that then cash is way better way to deal with anything money related in a real world. And just holding it can be useful in cases where you need to buy something fast and you don't trust market enough to keep it in eth or other trading pair.

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Quote from: BitcoinBarrel on August 23, 2024, 01:16:42 PM

I never understood the logic. Anyone use USDT? Why? Huh

Tether is handy for moving dollar value between exchanges when seeking arbitrage opportunities. Some folks also find it simpler and less expensive to keep assets in stablecoins rather than constantly switching in and out of fiat money and Im puzzled why this use case isnt intuitive to you. Stablecoins essentially function as digital dollars within the crypto economy, transferring value without the hassle of traditional banking. While the merits of Tether specifically can be debated, the concept behind it fills a clear niche.

Orpichukwu

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If I'm from the US or I base myself in areas where I can have free access to the USD and make use of it on a daily basis, I don't think there will be any need for me to hold USDT. I even prefer holding USD cash to keeping it in the bank.

But here in Nigeria, where I live, we have more access to USDT than USD (you can still buy US dollars in the black market), but it's easier to buy and hold USDT since it's more crypto than USD. Due to our currency devaluation, I prefer to hold it than hold my local currency.

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I never understood the logic. Anyone use USDT? Why? Huh

Topic: Why hold Tether when you can hold Cash? (Read 257 times)