Think of Tether as casino chips. It's pretty much worthless outside the casino, but it allows you to play different games within the casino. For example, you could play blackjack then move to a poker table, etc. Once you're done, provided you still have some chips left, you can cash out.
Well, it seems you don't know an inch more about tether than I do. Still completely in the dark why someone would hold tether a) with no speculative purpose , b) when one can directly convert from one crypto to another While loading up on a large amount of risk given that holdings that back up tether are either non existent or completely opaque.
Sure, but here is the huge difference. The chance that the casino goes bankrupt while I gamble there and hold chips is negligibly small. I also won't convert a sizable amount of my investments into chips but at most a bit of play money. The moment before I leave the casino I would convert the chips back to fiat. The comparison is completely invalid. Holding tether exposes anyone to millions times more risk than holding casino chips during a visit.
the main purpose of Tether is to inflate crypto price. Without fake money, crypto would never reach levels it did.
I wanted to stay away from this thread and rather enjoy everyone posting opinions but not having ownership of Tether USDT crypto assets Dude, I can turn 10,000 USDT into US $ 24/7/365 within 5 minutes with very little fees, less than $20 If I don't mind waiting for legacy outdated banking system hours, I can turn 100k USDT to $100K to my US bank subject to wire transfer fees and delay Or, I can spend online USDT on Gucci, Tag Heuer, Breitling, Louis Vuitton, and a bunch of other goods and services that accept crypto payments If I was not in the US but in Asia, or in Turkey or in Dubai, I can spend USDT at physical stores and merchants USDT Tether is like physical cash in your wallet, but much more useful as you can spend it online instantly USDT Tether is like US $ in the bank but 100x better as it's accessible 24/7 and if you want to use 10,000 or 50,000 on whatever shit you want, you do not have to deal with possibly getting questioned by your bankster asking why you're sending that much overseas And if your bank gets seized on a Friday night by the regulators, you do not have to hope and pray that the US regulators will announce on a Sunday night a bailout
Dude, whether it's risky or not, people will continue to do whatever they do until they cannot. Some people believe Bitcoin will go to $1 Million within a year.
What part of the spending online or in physical stores or merchants "constitute having to redeem the chips"? Whenever an online store/merchant accepts crypto as payment, it usually means they accept USDT because the payment processor usually accepts a bunch of crypto assets
And just to beat this analogy to death is wrong, "having to cash the chips at the casino" implies you have to be at the casino to cash out This is true if you sold $10k worth of AAPL shares and now have to cash out the $ out of the casino This is not true of Tether USDT, you're already holding it, the question is if you wish to convert it to US $ or another fiat currency or spend it There is no casino you're trapped in, like if you sold shares and waiting for IB to send you the $ You can take the USDT if you go to Hong Kong, can be exchanged to currencies at the foreign exchange window, or if you go to Brazil you can take local fiat currencies using your USDT at the ATM or if you go to Myanmar, USDT is the national currency, or if you go to El Salvador withdraw US $ the national currency at the ATM, or if you go to dubai luxury malls can spend your usdt Casino is a forced-prison you have to comply with the rules in order to get your fiat currencies. I seem to recall there were a few threads where posters pointed out that their funds were stuck at IB due to some KYC issues USDT has no forced prison since it's good online, or worldwide or even in the US through various means of exchanges On Sunday night 11:30PM, I can turn 10,000 USDT into $10,000 within 5 minutes but I cannot turn $10,000 to 10,000 USDT and put in my local wallet https://thecryptobasic.com/2022/05/...in-ethereum-dogecoin-payments-via-binancepay/
Oh, I was merely thinking of retailers that don't accept cryptos. In that case, you have no choice but to "cash out" (eg. transfer crypto to fiat).