Why so many negative opinions about Tether?

hiddenmist

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Quote from: Nebell on January 10, 2018, 06:24:28 AM

I think it's the best thing since Bitcoin because I can use it to save my altcoins when shit start hitting the fan and then buy them when they are low, while Tether pretty much never moves from $1.

Now from my understanding people don't like it because an exchange created this coin and it can be made out of nothing?
But I'm not sure about this.

Any input?

Because Tether is not real cryptocurrency. It was made to sabotage bitcoin or to accumulate bitcoin on their benefit. It is a centralized coin that has no definite supply and it was created by thin air. It is like exchanging your bitcoin for nothing.

Frank76

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I think Tether is a very good instrument for fixing profit. Do not understand why so much negativity towards Tether, several times I used it, it is very convenient, exchange rate is tied to usd.

johstacy

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In fact, very many accuse Tether of the fact that he does not have dollar confirmation. However, various audits have confirmed a good financial position. Some accuse Tether of pushing the bitcoin course upwards. Only yesterday I read about this in article. Well, maybe. However, there is no direct evidence.

HALLASTERA

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Tether have not open blockchain it's like paypal. Full controlled currency it's not should be in this community (imho)

ohlawdy

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- "Bitcore (BTX) - The Future is Now"

Quote from: aalavandan on January 26, 2018, 03:22:52 AM

A lot of people think that it isn't backed by anything and that way its basically a "scam". You exchange your BTC for USDT, but after that you can't really trade USDT for anything else and you can't withdraw them.

The problem is that they don't really deliver the proof that it is otherwise.

Crypington

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Tether is a great idea. A much needed safe haven in the Crypto world.

But I personally think they should be audited every quarter and make the results public. And we need clarification on whether or not they are mixing acccounts and to what extent the funds backing Tether are available or used in their other business.

I think if Tether releases a quarterly audit, and sequesters the backing funds properly, and proves it, then they would be a great addition to Coinbase.

Ninja Sword

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I understand the vision of everyone, but i prefer to keep a neutral view because i know it depends on the point of view of the issue. But I'm still researching some doubts, and one of them is whether institutions have influences. Can someone help?

Nebell

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Quote from: aalavandan on January 26, 2018, 03:22:52 AM

A lot of people think that it isn't backed by anything and that way its basically a "scam". You exchange your BTC for USDT, but after that you can't really trade USDT for anything else and you can't withdraw them.

You can trade it back for BTC. And the whole point of keeping USDT is to have the same amount of money without having to convert it to fiat.
Let's say you have 1BTC and it's wroth $15.000.
You anticipate a market crash and sell your 1BTC for 15.000USDT. BTC crashes to $10.000 and now you can buy 1.5BTC with your 15000USDT. It's a way of keeping funds stable, in my opinion, it doesn't need to be traded to anything but BTC.
If you decide to save your funds by trading it to fiat, then you most likely will be taxed and end up losing money.

aalavandan

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A lot of people think that it isn't backed by anything and that way its basically a "scam". You exchange your BTC for USDT, but after that you can't really trade USDT for anything else and you can't withdraw them.

Da Cambodia

newbie

Activity: 84

Merit: 0

Many peoples have bad opinions about the tether because they don't know what it is, what to do with it and what it can do for them. they're just afraid that they will go to lost all their profits that's why they're afraid to invest and haveing a bad opinion about it.

dizzylight

newbie

Activity: 3

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Because most of them are stupid don't have ability to think. As for what I know of this problem, the only explanation is the demanding for tether is very strong, a lot of ICOs depend on the issue of 'currency'. It doesn't only count on US dollars, any other Fiat purchases could contribute to the mint.

Quote from: Nebell on January 10, 2018, 06:24:28 AM

I think it's the best thing since Bitcoin because I can use it to save my altcoins when shit start hitting the fan and then buy them when they are low, while Tether pretty much never moves from $1.

Now from my understanding people don't like it because an exchange created this coin and it can be made out of nothing?
But I'm not sure about this.

Any input?

orcuncanli

member

Activity: 112

Merit: 11

tether says that for every tether they got they storing its value in dollars and tethers market cap is nearly 1.5 billion dollars . most of people thinking they dont have that much money including me. however its useful and there is a huge exchange site behind tether.no need to complain

soros017

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If it is what people say it is, I mean, just US Dollar sitting in some bank in Taiwan, there is probably nothing wrong about it. The only problem I see is that it is centralized, which is a point of failure.

MadZ

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Merit: 657

Quote from: pjhom on January 10, 2018, 03:15:32 PM

I thought they had an audit last winter and were found to be in compliance. I did a quick search but couldn't find it. Anyone have the link?

The report is available here:
https://tether.to/announcement-transparency-update/
https://tether.to/wp-content/uploads/2017/09/Final-Tether-Consulting-Report-9-15-17_Redacted.pdf

I think the only real question that can be asked is whether the trustee accounts mentioned in the report are just Bitfinex funds, but there is also no proof that they are.

pjhom

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I thought they had an audit last winter and were found to be in compliance. I did a quick search but couldn't find it. Anyone have the link?

MadZ

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Quote from: mummybtc on January 10, 2018, 02:59:18 PM

The issue with Tether is lack of transparency from the team, their books do not match up and when something like this is happening and we all know what banks do and if this become a trend then for me it is better to stay away from such project

I keep hearing this claim that their books don't match up, but is there any proof of this? As far as I know, they passed their independent financial audit in September, which was in response to the Bitfinex'd article. Obviously, some of the contents of the audit were redacted, but this is common practice in my opinion.

bribed

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Quote from: mummybtc on January 10, 2018, 02:59:18 PM

The issue with Tether is lack of transparency from the team, their books do not match up and when something like this is happening and we all know what banks do and if this become a trend then for me it is better to stay away from such project

Exactly this! The amount of existing Tether should be backed one on one with USD. But nobody knows if this is the case or not. So far I stayed away from Tether and I will continue to do so. This isnt for me. If I want to hedge, I just go back into fiat.

mummybtc

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The issue with Tether is lack of transparency from the team, their books do not match up and when something like this is happening and we all know what banks do and if this become a trend then for me it is better to stay away from such project

blue_id69

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Activity: 266

Merit: 104

Its really important to me since i use it as arbit material. Cause as you say the price is always 1 usd per tether, as long you smart enough to realise what coin to buy and sell youll get profit from it.

styca

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Merit: 354

There's also the fact that since the Wells Fargo thing last year, Tether hasn't actually been very reliably tethered. In times of peak demand - i.e. whole market turns double digit red - Tether can swing a long way from the $1 peg. Plus there is skepticism that they really have sufficient reserves - when market goes red and almost every trader starts using Tether as the pair, you are putting a lot of faith in something that I feel could give way at any minute.
But having said that, Tether is needed sometimes as there are no better alternatives. A bit like EtherDelta.

Topic: Why so many negative opinions about Tether? (Read 268 times)