Tether

Discussion in 'Cryptocurrencies' started by m22au, Dec 5, 2017.

  1. m22au

    m22au

  2. Here4money

    Here4money

    Nah, tether is mostly a place to park money in case of volatility or uncertainty. While true that is fungible and treated as an asset (hence allowed to use the 1031 swap exemption), in reality most people swap with better value coins in those events. If shit his the fan, I doubt tether would save anyone from the mass liquidity needed in such sell off.
     
  3. m22au

    m22au

    I understand the "a place to park money in case of volatility or uncertainty", but why not do that in US Dollars (or an investor's local currency)? Why the need for an extra layer of complexity and presumably extra transaction costs?

    The only motive I can see is to legitimize tax evasion in the eyes of the investor.

    .
     
  4. Here4money

    Here4money

    Not tax evasion if the IRS refuses to call it a currency but rather an asset. Not the crypto trader's fault the loophole exists. Tax avoidance is a more appropriate term.
     
  5. just21

    just21

    I think that on some less regulated exchanges they do not have USD markets so use USDT tether instead.
     
  6. m22au

    m22au

  7. Vertex

    Vertex

    From the article on Bloomberg..*edit: i meant to quote m22au's link
    What the hell!?!?! They claim to have 1to1 usd but wont even reveal the banks where this money is supposed to be? LOL

    Can you imagine dumping money into a brokerage account where they just assure you that it is held in a segregated account...but wont tell you where and in which bank? Even with the regulations and oversight of US brokerages there are thugs like Corzine that manage to explode accounts.

    This shit is a ticking bomb, its just a matter of time. Crazy money being made, but the tears are going to drown that out before this is over.
     
  8. Omg the tears

    [​IMG]

     
  9. Daal

    Daal

    I dont think they are issuing tether to prop up bitcoin. Bitcoin is very liquid, it has over $100B in market cap and it trades over $5B in a day. A few hundred million worth of tether are peanuts. I also dont think they are doing wash trades to prop up tether, humans see patterns where none exists as shown by studies. Bitfinexed (that guy with all the conspiracies) probably doesnt even have the tape reading experience to be able to tell, and its not easy to do it anyway

    That said, I do think tether is quite sketchy for investors. The upside of a tether holder is 0% (in USD terms), the downside is 100%. The reason that this exists and people hold it instead of USDs is because some exchanges rather rely on it instead of fiat, they do it, I THINK, because they dont have the banking relationships to have USD fiat deposits and withdraws. It also helps in terms of moving money around between exchanges, with tether it can be done in like 30 minutes instead of the slow and expensive wire system. One could do it with BTC or even better, LTC but there is a fair amount of price risk there so there is some value for Tether
    The problem is that this thing is an almost $1B pseudo USD currency that the US government doesn't control, the US government will not like that. I'm sure this can be used for many illicit activities. If they go after the bank accounts of anyone involved with tether, this thing might drop like a rock. So one has to be very careful if holding for long-term

    I want to like this thing, it offers something really cool, instant USD electronic transfers at a cheap cost, but I don't think Big Brother will let this thing live for very long
     
  10. m22au

    m22au

    Yes I think this is an important angle - although technically a cryptocurrency or token, Tether is acting as a pseudo bank, presumably without a banking license.

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    #10     Dec 5, 2017