This is coming and I cant wait. Congress' first priority is stable coin regulation and I think we will look back at this era of bitcoin/crypto in amazement that this didn't happen earlier. The Terra/Luna fiasco only made this need even more aparent. In the near future, all stablecoins will need to have transparent daily holdings and be subject to an audit. This will be a huge booster to bitcoin/SOME other cryptos in the next bull run in my opinion.
Tether will be fine Did you know European banks (International banks) are able to issue Eurodollars? Sounds like Tether to me Most Bitcoiners like me do not want USD to collapse. It's nice to be able to pay for goods and services with fiat currencies
Terra/Luna is an algorithmic stablecoin It's unfortunate that it all stablecoins, even the ones backed by equal or greater value like USDT are treated like Terra UST
They can issue credit in Eurodollars. Is that what you meant? I’m fairly sure you know that only the Fed has the power to order the actual or digital printing of greenbacks. If your point is that the issuance of credit is money creation, then yes I think anyone with a basic understanding of money and banking knows that. “Money and Banking” was a course I took a few decades ago as an undergraduate economics major. I’m not surprised. I can’t determine if it’s willful ignorance or self-deception, but it makes no difference. Let me ask you this. When someone gives fiat currency to Tether in exchange for a token, how would you characterize the transaction? Is it a straight up purchase of property? Is it a creation of a bailment with Tether the bailee? Is it a loan to Tether with the token serving as an IOU? A jokester would say it’s plainly a gift to Tether. One thing it can’t be is a deposit in a bank because Tether is not a bank. So paying for goods and services with Bitcoin is just hype?
You're troubling yourself with something that is not for you to worry about. It's a feature and convenience for hodlers Tether is not a bank. They are selling crypt digital assets in exchange for 1 to 1 USD. Tether is not a US company. USDT is digital property, a bearer asset. Tether will be fine If Tether collapses, you can tell me I told you so and I will accept it and even apologize to you and everyone that I was wrong about Tether being fine I'm very glad that you're very much educated on the subject, savoir, because I am not and I defer the expertise to you If I may, the US is unable to regulate the Eurodollar market since they are outside of the US? During the 2008 financial crisis, the Eurodollar market collapsed, did it not? The Eurodollar deposits are not FDIC guaranteed and with banks unable to trust any other bank, the market, LIBOR and all were in total crisis, were they not? On 9/19/2008, the Fed extended the guarantee outside of the US borders to all these money market funds as the lender of last resort and lender of only resort? On the next financial crisis, it will be interesting how these Eurodollar market not regulated by the US will be saved by none other than the Fed, no?
Nothing I read on this forum makes me troubled or worried about anything. But just in case you’re worried about me being worried, I like to read and post from time to time, just casually, especially after the market close. I’m enjoying a refreshment as I type, so I’m good. Okay, I will read this as you saying it is a purchase of property from Tether. Let me follow up: What is Tether’s return/exchange policy? Is it obligated to accept returns and exchanges. Since I haven’t bought any Tether tokens, I don’t care to read the fine print. Why would I say I told you so? Why would you apologize to me or anyone else about Tether? Are you secretly an insider posting on this site? Funny shit. I’m no expert. I have an interest in economics and knowing as best I can how the world works. I would not say “unable to” regulate but rather “chooses not to.” Sometimes a short-sighted remedy can make a situation worse because of unintended consequences. Yes, and it got bailed out by the Fed. There was a liquidity crisis, yes. Yes, the Fed bailed out foreign banks. Yes, I expect the Fed will bail them out again. Like it or not, it is what it is. It neither troubles me nor makes me worry about it. I just ride the wave.
Awesome!! I was worried that I'm almost finished with a book that has given me false information and claims USDT is a product that only certain entities and persons with contractual agreement are allowed to purchase directly from Tether Co. USDT being that it's a crypto digital asset (digital property) that is also a bearer asset are then sold in secondary markets, CEX and DEX and between counterparties (i.e. a merchant accepting USDT for a good or service) But only the ones with a contract directly with Tether Co can redeem for USD. I do not know the details of the arrangement since I'm neither an insider nor a person with direct contract with Tether Co. If I have $100K worth of USDT and I want to convert it to USD, I would go to Coinbase and convert it for about 3 basis points slippage plus exchange fee ------- For many years, everyone said Bitcoin is useless and the only things you can purchase with it are illegal drugs and other products on the darknet or pay a ransomware Today, using bitcoin, I can purchase a Tag Heuer watch, Gucci products, just about any luxury item, coffee, groceries, computer products, a car, even a house But it's my choice and every hodler's choice It's a convenience that we're able to spend directly an investment without having to convert to fiat, first, like what I would have to do if I owned AMZN stock as investment I put a long post together for Schizo on how this makes the Bitcoin investment more valuable and has many use-cases, such as collateral, but I got a response that pretty much indicates he only wanted to criticize spending btc and not interested for investment Hence my short and dismissive reply to you -------- It's a common post on Twitter that a Bitcoiner will convert everything to btc which is not my case Let's suppose I did this I can have a dedicated wallet with 3 btc for a year's worth of living expenses, so when rent is due, I sell an amount of btc to USD to pay my rent, when I need clothes, I would spend btc directly to Macy's, when I need a watch, I can spend btc directly to Tag Heuer, when I need groceries, I can spend btc directly to Whole Foods and when I need a few hundred $ in cash, I can convert btc to USD, and so on At the end of the year, can connect the wallet to online tax service and it will automatically calculate my tax obligations based on time of btc sales or time of btc spending So all of this is to say that Bitcoin and crypto assets being accepted as payment for goods and services are beneficial to the hodlers. And this works across borders and in other countries. Bitcoin and cryptos are a global asset
little like that fund BITO and simple sisters coming to market , so folks could lose 65% of their IRA's too 45 to 17 in no time. Yeah, crypto is great ! need to democratize them losses
Okay, acknowledged. I’m confused by your use of “bearer asset.” You emphasized it in bold as if you are saying it has a special meaning. Are you saying USDT is a bearer instrument, a security? If it’s a bearer instrument, the bearer should be able to make a claim against the issuer for the underlying asset. Maybe the SEC should look into USDT like it’s doing for XRP. This seemingly contradicts your above claim that USDT is a “bearer asset.” It sounds like you are describing a registered instrument, not a bearer instrument. As long as there is a counterparty to the trade, right? There is no legal obligation for any party to give you cash for what you call a “bearer asset.” ------- This discussion has been beaten to death. There are now companies that have developed apps to take care of the back end part of using Bitcoin to buy stuff. Cool. Still doesn’t change the fact that Bitcoin has to be converted into fiat currency except in banana republics like El Salvador.