This is exactly what is in question. Has there been 1 USD paid for each Tether out there. Why do you think US went off the gold standard? They wanted to create more dollars without having to have to mine more gold. When you don't back up your currency with anything and can print as much as you want, you're just basically hoping people don't figure this out. This makes no sense. There is no blockchain with Tether. Its the exchange that just lets you trade your BTC for USDT and vice versa. If all of a sudden people started to worry about the validity of Tether, everyone would want to get out of Tether. I imagine the exchange will be stuck with lots of USDT and nobody to sell to. Then they will want to go to the Tether issuer and perhaps gets some USD, but clearly if there is an issue, the USD won't be there. Perhaps the exchange will be the first person to know, and they won't allow any transactions in USDT, so anyone who has it now has useless digits. Heck, it will even make BTC spike in price because people would rush to unload all stablecoins at once. Here is an example with real estate. Suppose the current value for a house your size in your area is 1 million. Some house down the street sells for 1.1 million simple because a drug dealer needs wants to clean some money. Then some offshore investor buys the next house for 1.3 because it has had multiple bids and they have lots of access to cash and want to park some money in a foreign country and were happy paying 200k over asking. Now all of a sudden, houses have gone up 30%. All the next listings will be at 1.3 million and higher. And this will be based on 2 transactions! Perhaps 50 to 100 houses in your immediate are now worth 30% more!!! It doesn't take much volume to move the price of BTC 1k. For ES as an example, the price can move quite far overnight on low volume. But with crypto, it can move 10% in an hour with I think only several thousand coins. (although I'm not an expert on volume and there are so many exchanges so you can't really compare like you can with the CME) The point is, if with 50 million, you can move the price of BTC just 1%, and people adjust to this new price, then printing tethers out of thin air might have moved the price even 50%. Yes, when Elon tweeted that TSLA was buying BTC, I'm sure there was lots of new money entering. But what if its not new money, but rather 50 million in Tether that didn't have USD behind it. One more example. In poker, you can easily make a person with a good hand believe you have an amazing hand if you just keep raising your bet. They will eventually fold, too scared to put up any more money. But what if you knew they were bluffing? Tether might be the bluff. The government regulates how much money banks need to have on hand in their reserves. Nobody regulates what Tether has, and they refuse to provide details. There is something fishy going on. How much this has affected the price of BTC I don't know, but I think its possible that just like RE values being bid up crazy amounts with offshore money in certain cities, its possible that BTC price has moved easily 50%. The FED is doing the same thing. When they go in and start buying bonds, isn't that supporting the price of bonds? What would those bonds be worth if the FED wasn't buying?
Being positioned is much different than talking about the true workings of BTC and USDT. I agree that just throwing money at stuff in a world where things go up thousands of percent is an excellent strategy. Right now, I don't believe there are any more Amazon's out there as if it was year 2000. I think right now, people are trying to figure out how best to preserve what they have. Sure, crypto is still a good bet, but the asymmetry in the trade is no longer there. You can bet BTC will go to 500k, but for most, risking 50k on one coin, if they don't have a nice nest egg, its a huge hit. Its not like risking 1k when BTC was cheap and hoping for a 100x trade. When we see what both gold and BTC did in March of 2020, we have to be very careful.
That will become the biggest problem for BTC. When it was cheap a lot of people started to gamble on it to get quickly rich with a few hundred dollars (in best case). But the majority of them have now to buy/sell much smaller size as BTC became expensive, which means that the amount of traded coins goes down massively. And the problem is that BTC needs this herd to pump up the price. To pump it up now the value of needed capital in USD is also massively up. Doubling when BTC was between 0 and $1,000 was much easier than when prices are like today. The herd is ignoring BTC and gambling on the cheap crypto's. The penny crypto's.
https://coinmarketcap.com/view/stablecoin/ has So today, Tether was 53% of the market cap of stable coins (68,558,518,621 / 129,268,411,185 * 100) and 88% of the daily volume (67,507,740,765 / 76,757,376,442 * 100).
Just some points to note: 95% of circulating Tether USDT coins cannot be redeemed from the issuer due to where they are currently stored. This is a choice by the market participants If you're in the US and you want to redeem Tether USDT for USD, just do it on Coinbase If you're not in the US, you can go to your crypto local exchange Anyone saying there are concerns with redeeming Tether USDT do not hold the actual coins. See above
Ok so I have a question or 2 1) is it not true that that "it is valuable to everyone else " only becasue they have spend real currency in to obtaining the Crypto asset! if the confidence evaporates then the withdrwal in Real currency will be lot lot less , now apply same logic to USD or Euro .. behind both currency there are real nations with assets 2) even if we believe in one Crypto there is no guarantee that overnight another crypto becomes currency of choice ! if so then what happens to the billions invested in first crypto so just like we have a Euro / USD and 5 other major currencies As of today great for speculation ( if I have the stomach for volatility ) but as store f value and use ! .. I rather stay away
@Trader Curt @Magic hang on guys, I got this. So you claim there's no blockchain with Tether? What's this then? https://omniexplorer.info/ https://ccfox.zendesk.com/hc/en-us/...ence-in-Three-USDT-Chain-OMNI-ERC20-and-TRC20 https://explorer.bitquery.io/ethereum/token/0xdac17f958d2ee523a2206206994597c13d831ec7 Tether transacts on not 1 but 3 blockchains now.
I was pleased with this news. It's a great buying opportunity. So don't yawn until the so-called action is over. Something didn't quite work out for them to ban cryptocurrency. Although how many times have they tried to do it. And each time the failures are getting smaller and smaller. I think bitcoin will not lose its relevance. Even if it tried well. Bitcoin is everywhere now. They even invented games with it. Where you bet and make money on it. I myself am not a fan of gambling. I'm afraid of losing everything. For most of these games you do not rely on your brain. It's all about luck. Even those bitcoin card games. You think it's up to you? You just throw those cards with tribal books and hope you're lucky. Although how many people have raised a lot of money on this. I do not know how they do it.