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Tether (USDT) Explained - Is Tether a Scam?

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If trade cryptocurrencies, you probably come across the most infamous stable coin : Tether (USDT). Tethers are pegged to the USD dollar and are used in many exchanges that don't deal with Fiat (Binance, Poloniex, Bittrex). On paper 1 USDT can redeem $1 USD from the Tether platform, but there has been a lot of accusations of a Scam. This video explains what Tether is and its limitations. 👍🏻Subscribe to my YouTube Channel: https://www.youtube.com/c/boxmining 👑Recommended Exchange - Binance: https://goo.gl/joe55C 🤑Trying out Kucoin - https://www.kucoin.com/#/?r=7g34u4 ●▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬● 💰Buy Bitcoin Through Coinbase: https://goo.gl/h1bw5v 🔒Secure your Crypto with Ledger: https://goo.gl/trBwPr ●▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬● Telegram groups: Telegram Discussion Group: https://t.me/Boxdatamining Telegram Announcements: https://t.me/boxminingChannel ●▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬● ♨️Social: Telegram announcements: https://t.me/boxminingChannel Community Forums: http://forums.boxmining.com Steemit: https://steemit.com/@boxmining Twitter: https://twitter.com/boxmining Facebook: https://www.facebook.com/boxmining ●▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬● Track ICOs graphically: https://icotracker.org 💪Donations (Message me for Shoutouts!): Bitcoin : 13EvsPm3YhiCPGksQQdvQUFtsbF8FoU6Cz Ethereum: 0x58d98516363D2A5f93CE6aB4A4a909599C3EEC3a Website: http://boxmining.com
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Text Comments (482)
Boxmining (4 months ago)
Join Us on Telegram: https://t.me/Boxdatamining Telegram Announcements: https://t.me/boxminingChannel
hassane iherkouchne (4 months ago)
hey boxmining , some douch scammer is using your logo and name on other channels asking people to send bitcoin and ether to invest for 400% return ! watch out !
000dodo000 (4 months ago)
Such a pity that Tether is illegal (printing money) and will be shut down by the government. What a punk! You Know the SEC will get medieval in your arse? Don't you?
Progress Now (4 months ago)
rockanore g new silk road? Haven’t heard about it yet. Tell us more about it and matrix.
rockanore g (4 months ago)
Boxmining hey box keep up the good work, can you take a look at matrix network please and let your subscribers know if you think it will be a hit? If it is the sole chain used for the new silk rd it will be x100 by 2019.
DCUPtoejuice (26 days ago)
why don't they just make the bank account statements public?
Dan Anthony (30 days ago)
Well where would we be without it. I would use it while the whole market is crashing , but now I don’t know what to do.
barendts (1 month ago)
This is probably the next Mt. Gox
Ammon P (1 month ago)
Those leaks are very important, more leaks the better.
gir489 (1 month ago)
..DID SOMEONE SAY LOSS?! | || || |_
Aeon 1111 (2 months ago)
Tether when lambo? :-)
Armando Calderón (2 months ago)
Tether can inflate bitcoin, it like the Federal Reserve doing the same with the market.
Samuel Diamante Cruz (2 months ago)
Is true that some people use it for trading inside binance to stay away from using coinbase wallets to avoid ta xes ? And only using coinbase to cash out when done with crypto??
Pradeep LN (2 months ago)
Nice video...from where can I buy and store Usdt?
Maggic (2 months ago)
Crypto is like a kingdom — Bitcoin is king (volatile), Udst is queen (stable) and all other coins are the subjects. 😃
Al DeTrolio (2 months ago)
The comical thing about everyone's concern with Tether is that the dollars in their pockets are no different than Tether. the piece of paper called a dollar HAS NO BACKING ITSELF. No gold or silver or oil or food or any other intrinsically valuablle commodity. The fiat dollar is exactly what it says it is... FIAT. FAKE. Nothing But A Piece Of Paper with an IOU written on it. It has value because the fed decrees that it does... not because it actually does. Tether is no different than the regular US dollar. The only difference is that men with guns claim that the US dollar is what you will trade with, and is the only so called 'legal thing' you can trade with, (or they will lock you in a cage) and that it has value when it clearly does NOT. Other than that... the dollar and Tether work based on the same bullshit false morality and lack of principles. In this life when you pull back the curtain and have a peek at the wizard of oz, you find out that he is a fraud. The dollar is the same fraud as tether. So I don't know what the big deal is. LOLOLOLOLOLOLOL
Psaikodelik (2 months ago)
The idea of Tether is great. It is very much needed in any exchange that doesn't support some kind of FIAT. Though I have many doubt to it's legitimacy. It needs just one leak, one big fud, one article and 80% of all tether users would sell immediately while in your part of the world is night and you are sleeping.
James Hanson (2 months ago)
What's your take on Havven?
Craig Porcaro (2 months ago)
Would like to know this too.
sami santos (2 months ago)
This analysis that tether did the manipulation of the bitcoin market in my opinion, there are some precipitations: let's see some analysis:  let's take as reference on 11/30/2017, when bitcoin was around USD 9200, and the amount and tether at that time was around 741,868,000 according to the website of the coinmarketcap, and on the day of the top of the bitcoin which occurred on 12/17/2017 around USD19800, and the amount of tether issued was around 1,132,150,000. With these analyzes we could come to a conclusion that tether has manipulated the bitcoin market. but we will do a second analysis of the market as it stands today: The bitcoin is around USD 9100 and the amount of tether issued on 03/20/2018 according to the website of the coinmarketcap is 2,230,490,000, concluding the analogy, if indeed the tether has determined the value of bitcoin, more tether on the market, because bitcoin's value did not get a higher high since December, being that it had less tether in December in relation to March? draw your conclusions!
Deniz Seçkin (3 months ago)
What i believe is the tether is a fiat currency right now although it looks a crypto currency.if you want to hold the power and the money you must be centralized.long term I am waiting to see centralized coins take the leed .like xrp tether
edben24 (3 months ago)
What people fail to realize that tether use is that of a temporary interment against the volatility of the cytro-market. Say for example you sell a cytro during a banking holiday or weekend/reach the limit of what you can transfer at one time if you hold it in bitcoin it could crash/fall in vaule during that time. YOU ARE BUYING PEACE OF MIND.
ace GrowerPh (3 months ago)
It is good for trading
COOLWAVES (3 months ago)
hi can you post one more video related to tether , i am pretty sure they are the only cause of bitcoin price drop , if you notice more tether are increased more sudden drop in bitcoin price , i am pretty sure they buying from people bitcoins and throwing back into market causing massive price drop , since they have nothing to loose because it is not backed by u.s dollar nobody ever seen their funds , i think exchanges need to throw out this shit coin before everybody burnt , it will be end of crypto currency wonderful technology , we need to make it very dangerous red flag which is destroying this beautiful technology
jetliFAN (3 months ago)
I can't believe you're simply treating Tether fear as just another annual occurance. Are you crazy? Since Tether is NOT backed by real USD but money they print themselves, that means they've been pushing the value of Bitcoin up with fake money they printed. Once the CFTC investigation is over and CFTC will go public and scare the media with their news that it's a ponzi scheme, the crypto market will collapse. What's the real value of Bitcoin? I say around $1000-$6000. However, if we tell people NOW before CFTC exposes Tether, if we tell people to not put money into Tether and take any money they have in Tether, out of Tether I think we can make Tether disappear slowly. I think people should use their money instead to invest in coins/tokens where the companies are trying to solve real world problems. Tether = Bernie Madoff of cryptocurrency.
Hiroshi Rana (3 months ago)
Tether should had gone down after "Tether and Bitfinex subpoena by the CFTC" but its still there. Nothing happened.
shar53 (3 months ago)
I like tether; never had a problem with them. It's just amazing how people FUD about everything in cryptocurrency. I can't believe we've gotten as far as we have with so many weak hands. I don't care what a company does, someone will scream scam and many herds are formed. If we supported tether it could be fabulous. The wording of their tenets is for their protection against scammers looking for a free ride. Tether isn't going to shoot itself in the foot. If people don't like it; don't use it! I'm surprised tether doesn't charge more for changing cryptocurrencies into the US dollar (don't get excited, it's just my blank overall definition of what they do). I tell you, in the cryptocurrency world, I haven't heard so many people bitch and moan since I divorced my last husband. If you can't handle the heat, you know what to do (don't you?). When I say you, I don't mean you personally...anyway, people aren't properly educating themselves before entering the cyrptocurrency market IMO. Than, when they mess up they want to blame someone and than comes the FUD and FUDDERS are born (Fear Uncertainty Doubt Designated Eejits Resembling Sheeple). Your videos are always great...thanks. :)
SumrSurf (3 months ago)
Theres a direct competitor  in pre-sale now , www.flyingmoney.io ... the securitize every transaction with fiat and monthly audited . This is so needed in the market today . It will be so successful I think ,,Have you seen it ? Whats your thoughts?
CA AROON (4 months ago)
Tether have any blockchain ?...
@Boxmining , what do u think about nubits? cant seem to understand how it works , but been seeing some people prefer nubits over tether. TIA
bitcoin kendall (4 months ago)
guys what do you think about this mastercard . www.bitcoinpaycash.com/
gebz gebba (4 months ago)
1. its a scam. 2. its not a scam, goverment will shut it down asap.
jakeizlove (4 months ago)
Looks and smells fishy.
Al Mifta7 (4 months ago)
bitusd is the best way to keep your money safe .. 1:1 usd decentralized asset
CREATIVEFORUM (4 months ago)
Thanks a lot michael for that... That was amazing.. can you just tell me how much money you have made out of cryptocurrency in how many years.. a kind of unusual questuon but yes it will help me and my friends to invest in it as we are from india so lags in world's advanced technologies.. Thanks a lot in advance.
CREATIVEFORUM (4 months ago)
Thanks a lot michael for that... That was amazing.. can you just tell me how much money you have made out of cryptocurrency in how many years.. a kind of unusual questuon but yes it will help me and my friends to invest in it as we are from india so lags in world's advanced technologies.. Thanks a lot in advance.
Great Presentation Stay well . We at Good Life live simply so that others may simply live . yours D.C.H. out
Flippusmn (4 months ago)
This dip will probably make or break the validity of tether. I would hope you all sell that crap and buy BTC during the dip ;).
Matic Ovsenek (4 months ago)
In my opinion good substitute for Tether is x8 currency... https://x8currency.com/
Matej Rupar (4 months ago)
Yeaaa!! This will 100% be the next BIG Thing!!
SAMIR KUCAN (4 months ago)
yea... could be
ICO Launcher (4 months ago)
Launch own ICO ico-launcher.com
Simond Wong (4 months ago)
Michael, so enjoy all your content, and love your "In a Nutshell" series. Recently heard about Digipulse and being a digital will of sorts. Could you please please do a "In a Nutshell" on this token?
Cryptozcoin (4 months ago)
Yes! this please, very unique coin
Christian Jamoner (4 months ago)
i don't get it. let's say usdt is not backed by usd 1:!, so what's stopping btc from crashing? btc is backed by NOTHING. REPLY
OldTrafford110 (4 months ago)
You can't really just make money appear in your accounts when you're audited and then take it out and spend it afterwards. you need to have that money in the first place in order to put it in your accounts. i'm sure a big auditing firm like KPMG or PWC would be able to properly audit them
david teruzzi (4 months ago)
US banks are required to hold only 10% of their customer money as reserve. Tether USDT keeps a much larger percentage compared to banks! IMHO, if you think it is going to crash you should think US banks could follow immediatly after. 😃😃
bryr (4 months ago)
Tether is in no way a scam, just like banks are not scams either. Banks don't hold the amount of money that resides in everyone's bank accounts combined at any given time, not even close to it. They lend it out and invest it, but they keep small reserves, enough to allow withdrawals up to a certain point on a set time-scale. If they fuck up their estimate on this reserves vs time scale formula, they perish, which is what triggers a financial crisis. Tether almost guaranteed does not keep 1:1 reserves either, because it is not needed - unless every single person that has crypto wants to cash out in a matter of hours. A scenario like this obviously will not happen to either banks or tether naturally, but this FUD is creating a "what if" scenario that would NEVER happen if left alone, and it makes it likely to become a self-fulfilling prophecy because of such a sentimental and volatile market. The ONLY difference is that you have insurance if a bank goes bankrupt (to a certain amount of $). Tether does not offer this insurance, which makes the self-fulfilling prophecy possible. The lesson is: If everyone stays calm and we don't see over 50% of people cashing out within days, it'll be as if nothing ever happened.
TheCbrown146 (4 months ago)
The federal reserve can deliver. That's where you are wrong. Tether can't deliver in the worse possible scenario. The federal reserve can. Why? Because the government is backing it. They give the order the money is sent to those banks that are requesting and so on. Tether isn't backed by the government. It isn't recognized by the government as legal tender. USD is backed by military and oil. Tether doesn't have any of those. The sooner people realize it's a scam and drop it the better.
William Kilmer (4 months ago)
If tether is a scam, then all the worlds currency is a scam. USD has zero backing yet we print money over and over, sending us deeper in debt. This is also 2 month old news... brought up now to create FUD and crash the market. Insider Trading is most likely what is going on, cause this is no different then what happened with the FUD created from South Korea. (which was found to be insider trading). 2 month old news being used to scare investors now... fud 100%. This will blow over... it's not a scam. (If tether is a scam, all currencies are a scam. Simple logic)
William Kilmer (4 months ago)
TheCbrown146 That's probably true... but that would mean the USD is backed by the Middle East then. Good enough for an audit.
TheCbrown146 (4 months ago)
Wrong. The USD is backed by the US Military and Oil. They just won't tell you that.
Jamie L Bey (4 months ago)
William Kilmer They are Scams with the exception of Gold & Silver!
Luke Clemens (4 months ago)
what about ICOs.... that seems like "printing" free money to me.
Luke Clemens (4 months ago)
I've been thinking the same thing. For that matter - how are ICO's any different? It seems to me that anyone who does an ICO is just "printing" free money and getting rich from it.
strikersix (4 months ago)
Not anymore than bitcoin, usd or the banks are a scam. The tether fud, however, is an extremely dirty perception trick to not just distract you, but play you against one of YOUR best secret weapon. Anyway I have no clue how to help you guys fight the people you seem to forget you are waging a war against.
TheCbrown146 (4 months ago)
USD has more value because when the US Feds and military come knocking on your door you will remember why the USD is worth something.
Norberto Figueroa (4 months ago)
All of the scammers are being forced out of the market. Make room for some real projects.
Pradeep Poonia (4 months ago)
This news of subpoena is almost 2 months old now. So why it has been 'floated' in the market NOW? CME futures settlement date is today. I won't say that the news has been created out of thin air just for FUD. But the timing seems to have some intent behind it.
Make Easy Cash (4 months ago)
What is the marketcap of USDT vs BTC vs All of Crypto? Does USDT even may a dent?
Christopher Melville (4 months ago)
As a trader it's useful for entry and exit where there is no USD pair which I assume is the way everyone uses it right?
Make Easy Cash (4 months ago)
if USDTether is a scam or, at least being misused by exchanges, how would a USDT bubble burst affect lending program ICOs. A foreign bank cannot hold USD without any US oversight The U.S. Treasury claims international jurisdiction over U.S. dollars. So if fraudulent activity is found would this crash BTC enough to cause panic selling to zero. Could BTC recover from zero?
SmartCashVN (4 months ago)
Do i should to sell USDT today and buy SMARTCASH?
BitUSD and Steem Dollars have been doing what USDT is doing now, for a long time
Sempt (4 months ago)
I do not have tether I have smartcash! to the moon!
Somnium (4 months ago)
I use SmartCash
Timmy Wotsit (4 months ago)
i tried to sell all my tether like 5 hours ago and i still haven't got anything? halp pls?
Xochi Pilli (4 months ago)
Arnold Rimmer (4 months ago)
"Is Bitconnect a scam" - 15 Aug 2017. "Is Tether a Scam?" - 28 Jan 2018. "Is Genesis Mining a Scam?" - 30 Mar 2017. This is why I follow this guy. Great insight.
Armen Vardanyan (4 months ago)
Why is it so important for Tether to be actually backed by USD? If we look at it as a cryptocurrency, it is just another crypto, for which there is demand and supply. Bitcoin is not backed by anything and about $20,000,000 of Bitcoin is "mined" that is, created every day. And this does not worry anyone. Is it because they are centralized? Can the Tether company steal the Tether that I am holding?
Sentry-19lll (4 months ago)
Why is Tether doing what is does if it is usually 1:1. How are they making profits, if finally they need btc to get into fiat world. And it is the peg that kills Tether. If it was allowed itself to float, it would be more worth the effort. In conclusion - possibly a scam.
LL Cool J (4 months ago)
How do people assume this will Moon when it always pegged 1:1 for the dollar?? They would need to remove a shitton of coins from circulation, AND still guarantee that 1:1 backing.. is there something I'm missing?
OneMinuteFixed (4 months ago)
Tether is fantastic
enahs (4 months ago)
stay away from tether! its false..... as fake as the fiat currency you bought BTC with.
TheCbrown146 (4 months ago)
Last time I checked US was the one actively engaged in war and has a higher budget set aside for it's military.
enahs (4 months ago)
TheCbrown146 i highly doubt that. China would be beating out the USD if that was true. Haha
TheCbrown146 (4 months ago)
fiat currency is backed by military power. You're wrong kiddo.
Essential Trader (4 months ago)
Rick Lines (4 months ago)
I don't really care if I can redeem Tether for USD or not, as long as I can buy Tether for some other asset when it dips and use the Tether to re-buy the asset on the dip. I can't redeem any asset on, say, Binance, for dollars deposited into my bank account anyway, be that asset Eth, Tether, Bitcoin, or what have you. I can only get USD deposited to my account when I sell ETH or BTC to Coinbase at the market rate. So I see the redeemability issue of Tether as a red herring and irrelevant. Tether does not need to be redeemable for USD to maintain its peg, unlike political currencies around the world who maintain their USD peg by buying and selling to offset demand changes on FOREX. Tether has no FOREX account, obviously, and no one is trading Tethers for USD, Yuan, Euros, or anything else there. Mexico got clobbered in the 80s by trying to maintain a dollar-peso peg, and the investment banks counterfeited whatever amount of pesos on the futures market that was needed to drive Mexico into debt. Mexico borrowed from those same international loan sharks who were attacking the peso, in order to buy up and hold the banks' fake pesos flooding the futures market in order to maintain their dollar parity. Not only could Mexico not borrow enough to fend off the bottomless pit of investment bank put options, but the banks then arbitrarily boosted the rates on their loans to the Mexican government, destroying their ability to repay along with their credit rating. This new lack of confidence further undermined the value of the peso, in a nasty positive feedback loop. THIS SCENARIO CANNOT HAPPEN TO TETHER. I see no way for the banks to attack it as of the present moment. If Tether is mismanaged or its position is abused by Bitfinex, I imagine that the role it fulfills is important enough that Bitfinex could get away with quite a lot of abuse before actually pulling Tether down. This does not mean that Tether is solvent (as in "backed" by reserves. It does mean that actual backing may matter even less for Tether than it does for USD which is loaned into existence with only a pretense of fractional reserve "backing". The USD's use case is what keeps it going (payment of taxes to the United States Government) and Tether's use case alone looks just as capable of keeping Tether up and running for the forsaeable future. Obviously, almost everyone who cares about Crypto is more than just a tiny bit worried about the collapse of the United States Dollar into hyperinflation at some point, should the petrodollar become replaced by other options to obtain our energy.
LL Cool J (4 months ago)
Interesting.. as a Canadian I cant say I know much about that genre, but makes sense. The Canadian government supports trading crypto currencies as it sees them as a commodity, and as long as you pay taxes on it then it is all good. These laws have been archived too so they are not ever going to be changed.
Rick Lines (4 months ago)
LL Cool J Well... the United States Marines could launch a military strike on Tether's offices. Then it would be gone. Which is the disadvantage of being centralized. But could the exchanges still continue to use the same system anyway? That's the real question. The United States has no qualms about raiding currency systems it sees as a threat, such as the old E-Gold they shut down, or even Bernard Von Nothaus' ridiculous Ron Paul gold coins.
LL Cool J (4 months ago)
Well spoken! So then do you always see Tether maintaining a dollar? Or do you see some sort of possible increase in price with a decrease in circulation??
eclipseNF (4 months ago)
Isn't most tether purchased with other cryptos and not USD?
Gabriel Valdes (4 months ago)
Just like a bank. If they don't have enough money in their bank to Gove to you, they reserve the right to give you your money. Crypto market need to take have a day off.
tonyhsu222 (4 months ago)
Thanks for the video! Good job as always
Alexander S (4 months ago)
What about monthly audits?
johann DSouza (4 months ago)
As a CPA, when the auditors are sacked, there are two real factors that need to be looked at, they are blocked from providing independant advice, they have seen anomalies which do not allow them to sign off on the accounts and may be coerced into, as such they have resigned, the very fact that the auditors have resigned that is a MAJOR red flag.
Tony Yau (4 months ago)
it's a scam just like bitconnect
D Scooo (4 months ago)
They say they have 2billion in USD in their bank account. Just.like every scam they lie . Thether will be next big scam to pluet the price of BTC . The problem is the people behind it can just buy BTC with their usdt
The Defenestrator (4 months ago)
Smells fishy to me!
abc def (4 months ago)
how to short tether?
Andy Sharky (4 months ago)
Excellent review..
ching wik Huang (4 months ago)
Can you not buy Tether when BTC is at its peak and sell Tether back to BTC when its at its lowest? that way you actually profit some BTC amount Correct me if I'm wrong
Tim Huang (4 months ago)
YES Essentially Tether is like cash but if Tether crashes or it is not backed up ur money is gone
joe dagger (4 months ago)
Once you started talking about tether everybody signed up and subscribe to you you better give Fast information
June Bug (4 months ago)
My questions are how does Tether make money? Do exchanges "buy" Tether and make it available to traders on their platform? At what rate do exchanges buy Tether? We may get some answers if we follow the money.
petera85 (4 months ago)
They should be buying Tether. Some exchanges offer purchases in USD and credited in Tether, Bittrex do this for wires over 100k. But there is zero transparency unfortunately and the exchanges have kept the lid on in how they deal with buying Tether so we don't know..
Dcoin (4 months ago)
they provide service for exchange, so I think exchanges paid them.
King Kenny (4 months ago)
i don't care if tether is a scam or not, it should be so transparent that nobody can even ask this question but it's clearly not so it has to go.
Reg (4 months ago)
Some good.twitter accounts to follow on tether & why USDT is dangerous Worth a read plus the twitter accounts mentioned Also.. http://www.news.com.au/finance/money/investing/without-this-scam-bitcoin-price-would-collapse-fears-grow-over-tether-printing-press-as-auditors-part-ways/news-story/308503ab61f82d320e92847a0b59a23b
Crypto Couch (4 months ago)
9:25 scared the crap out of me. I thought my enemy was sending me a dm
Deemantos (4 months ago)
How does Tether redeem tokens for USD ? Do you link a bank account with them ? Do they mail you a check ? I have never used it and never will - unless perhaps they prove solvency. Why not just use Ether to buy your favorite altcoins ?
Crypto Hype (4 months ago)
Thanks for breaking it down for us Boxmining!
Mazinho Santos (4 months ago)
cofi added to kucoin, just got added today, i think its going far..
OLDSKOOL978 (4 months ago)
if you think tether is fake, send me some coin here 1GVjjztqCmDevL2V3B5eivSvrxRd9bUFWU If you think its legit, send the money here 16ixKsTSfFoVpcrfRkSgRj3rGoBGVEazJ5 :)
William Freire (4 months ago)
Damn, you must be rich now.
RedPat (4 months ago)
Sounds shaky to me.
scoobyjava (4 months ago)
The exchanges should quietly start to remove Tether as an option. This way it can slowly be squeezed out of the market without some massive, scary press release that creates a bunch of FUD....or worse a Tether explosion that could cripple the market for a long time. I think everyone in the community should start messaging the exchanges to remove it for our own long-term viability and trust that Bitcoin can carry on as a real and stable store of value. If we believe in Bitcoin we should work together to remove Tether before it blows up on all of us.
petera85 (4 months ago)
I think a couple exchanges will start to offer real USD instead of Tether. I think Bittrex is one. Maybe that is what they are thinking.
Rick Lines (4 months ago)
"Bitcoin can carry on as a real and stable store of value"... ...that fluctuates wildly in value month over month. Not what I would ever call a "real and/or stable store of value." We could, however, design another coin that would serve as a real and stable store of value that's even better than a dollar, which no sane person regards as a real and stable store of value. How about a crypto that is pegged to a the average value of a selected basket of real world commodities? Damn. I wish I knew how to realize that in code. That would free us from both Tether and the Dollar.
Mike Alcantara (4 months ago)
Tether can destroy the market.
Bad Santa (4 months ago)
Mike Alcantara I think it absolutely will destroy the market unless dealt with now.
Warr Jr. (4 months ago)
Hmm, seems legit! https://tether.to/about-us/ https://www.bitfinex.com/team
Jay King (4 months ago)
“Most of that resolves around”.... another reason why not to blindly follow you tubers...
Ghosteriz (4 months ago)
Hey hey heeeyyyy
IMC 777 (4 months ago)
Marginal banking using tether.
Roberts Silins (4 months ago)
I love Bitconeeeeeeect
wmilberry (4 months ago)
I wonder if Tether doesn't have those disclaimers about not being a currency and no guarantees against losses to keep regulators away and avoid running afoul of currency laws which would hinder their operational goals.
Borami Oum (4 months ago)
I'm all in tether. Waiting for it to go to the MOON!
Karlo Peternel (3 months ago)
LL Cool J Exactly, that's right Thank you
LL Cool J (4 months ago)
How can a coin pegged 1:1 to the dollar moon?? It makes no sense..
Borami Oum (4 months ago)
Michael de koning (4 months ago)
Borami Oum I really do hope you are sarcastic😓
The Defenestrator (4 months ago)
The moon? More like planet Retardia.
Don Barzini (4 months ago)
people do realise fiat is fake money too
DerekSpeare (4 months ago)
Tether was hacked recently as well and lost about 30 mil USD IIRC.
Minimaran (4 months ago)
DerekSpeare ”allegedly”
roomfactor (4 months ago)
Tether is worth just 2 billion usd. The entire crypto market is 550 billion. How can it bring down the market ?
roomfactor (4 months ago)
petera85 thank you for the excellent explanation
petera85 (4 months ago)
They are afraid Tether has just printed Tether out of thin air and bought bitcoin with it, inflating the btc price. This could be the case but certainly not for all tether since tether is selling usdt to exchanges, which means real fiat enters the market. Only bittrex holds 400 million Tether so I suppose bittrex bought this of them that they sell of to investors. This is how it should work but we do not know since there is zero transparency, either from tether or the exchanges.
Don Barzini (4 months ago)
NameIess0ne (4 months ago)
STRAT Was that response really needed? It was a legimate question, your answer is valid, but no need to be a jerk...
STRAT (4 months ago)
Look at the volume moron. Tether is the backbone of everything simmilar to BTC in that sense.
I think Tether is like training wheels.. Yes while it doesn't have backing.. It's our way Out of Government controlled FIAT CURRENCY.. By the time it crashes the Crypto World wouldn't need fiat pairing or comparison.. It will be its own worth...
Aartjan Venema (4 months ago)
Thanks for relativating this a little bit:)
Bar D (4 months ago)
thanks for teaching me a new word
Arthur Heidt (4 months ago)
tether doesnt has this reserves,
ZmTopReasons (4 months ago)
Aartjan Venema (4 months ago)
Ah, great to hear you got there, counted their money and got back to us to warn us!
Brugllione (4 months ago)
That is just your guess, probably an accurate one, still a guess.
Raju Bouchard (4 months ago)
I use it to hedge against down markets, but don't hold for more than few hours and at best 24 hour period as the crypto market is volite
todd glass (4 months ago)
Crypto Investor just made a USDT is scam video where I asked this question, and have asked this other places and have yet to get a detailed coherent response, so I'll add my questions here and see if someone can help me out. For the sake of argument, let's say tether is lying, and they don't hold reserves or if they do it's only a small fractional reserve. How do we get from there to it's going to fall like a stone and murder the entire market (btc price essesntially). Step by step. 1. How do we even find out if they hold reserves? 2. If they do release an audit or an email or internal memo gets hacked and circulated, and it shows they hold 10% or 25% or some scary number and people go see, they were lying, SCAM!, what happens next? Everyone sells their tether back into btc or eth or USD or whatever main pair people use. With all this tether going back into coins, how does the price of btc plummet in this scenario? We learn tether is a scam, people dump it and then start dumping btc back into USD as well because why exactly?? Also, what is the mechanism that keeps it pegged right around $1? If everyone dumps tether, why does the price plummet below .90, .80, .70 ...etc? If they have a mechanism in place to keep it at $1 all the time whether people are dumping it hard or buying it hard, why is it going to all the sudden change when people dump next time? Asking purely for info, I don't use tether and have no dog in the fight. Please only knowledgeable people respond. I've heard enough speculation and duck metaphors. I tend to think tethers a scam myself by "just trust me its a scam" isn't a great reason. Hard facts please. Thanks in advance.
김결 (4 months ago)
Well the hysteria i think is mostly due to the fact that if tether had ANY fractional reserve backing their tether (whether 10% or 90%), that would essentially mean: 1) Tether has lied about every tether being backed by USD (hence credibility issue on all fronts especially transparency, 2) they were essentially conducting money creation since they pegged it to USD and used to to valuate another commodity. If U.S government sees this action as a conspiracy against gov type of deal, it could potentially get rid of any stablecoin fixed to a currency. There are so many wrongs and issues here but thats the biggest one
Conscious Crypto (4 months ago)
You've already got a good reply here for one possible scenario. I'll add that one other "tether crashes crypto" theory I've heard is the idea that the Tether/bitfinex people are holding all this BTC they got in exchange for worthless USDT and are going to dump it and run for the hills now that they're caught. This BTC dump will tank the price of BTC. I think that's absurd. First, they don't have THAT much BTC. Most people are trading through USDT, not just holding it as a store of value. Even the ones who do that because they're afraid of bear markets don't do it for THAT long. So Tether/bitfinex only has but so much BTC (or other coins) from people trading through it at any given time. People trade BTC for USDT, but then they trade USDT for EOS or something. One person gives up BTC to get USDT and the other gives up EOS to get USDT, but both of them then trade the USDT for something else, in one case EOS and in the other whatever the person who had EOS wants now. Again, no one should be using USDT as a store of value, and percentagewise I don't think that many people are. The second issue why this speculation about USDT crashing BTC markets is that not only do they hold all this BTC, but they are going to dump it all at once and crash the price. But why would they do that? If you have a lot of something you've got more reason than anyone to only sell it slowly to keep the price high. So the chain of cause and effect that Secondary Matters shares below is about as close as I can get to a rational argument for why it might possibly have such an effect. Really I think it just feeds more market uncertainty along with events in Asia, recent market corrections after all time highs in Dec., and the BitConnect scam,. The combination is definitely hurting the market sentiment. We definitely don't need anymore bad news, or the market could lurch sideways for months, with rapid but shallow volatility.
todd glass (4 months ago)
Samir, that just doesn't explain it properly. If tether is truly a free market, then whales could get into tether and manipulate the price much higher than 1.05, as they do with currencies that have higher caps and daily volume. Why doesn't that happen? What is the detailed reason why it sticks around $1 give a few cents. Secondary Matters, so the case for why tether failing would then drag down the rest of the market is because of MSM FUD causing folks to panic sell btc and alts back to USD? I still haven't heard a compelling case for what signals that tether has imploded or is in the process of imploding and begins this whole landslide. In my 1-4 scenario above, I assumed that tether fails because people going specifically from USDT to USD start getting denied. If tether actually doesn't have the money to handle mass cashouts though, I'd imagine they'd start halting USD cashouts preemptively and slapping a "maintenance" or "we got a letter from some government and we have to update a few things" sticker on it not allowing folks to cashout. Also, what is the cause of some future mass exodus from tether that starts this whole unraveling? A leaked memo or email?
Secondary Matters (4 months ago)
todd glass Great question. From step 5 onwards, what’s likely to happen is: people moved to USDT as a hedge against crypto bear cycles. Said bearish sentiment made them trade BTC or alts for fiat proxy (USDT), and now that this proxy is falling... guess where they’ll go? To fiat! (Or at least, attempt to). Then, MSM would pick it up, and spin the heck out of it, exacerbating the FUD, and driving BTC price into heavily oversold zones. Altcoins may take an even greater beating - whereby many sh!tcoins will repeat the fate of Bitconnect. But the ones that do survive will not only come back - but thrive, and see real world adoption - that would in turn drive the price up in a much healthier, organic manner.
Minimaran (4 months ago)
Most people just trade out and in of usdt when btc goes down. As stated earlier Tether makes it so that they legally does not have to pay out any USD for Tether according to their terms on the homepage. Theoretically they should print more Tether when BTC goes down because more people goes into Tether then. To meet the extra demand for Tether they should then print more to keep the exchange rate to 1. If the demand is too large USDT should be higher than 1, which it was 15-30 december. Im not defending them, they seem shady but at the same time they logically should print more USDT when BTC goes down due to high demand. What I like to see is more transparency from other exchanges regarding their purchase of USDT.
Lothar Scholz (4 months ago)
600 million new printed USDT just after announcing that it's not audited in the new future after firing Friedmann LLP. Now its time to JODL and NOT(!!) HODL
C C (4 months ago)
Michael.... the irony is... USDT is a model of USD..... so what does that say for USD if USDT collapses.. More importantly..... is USDT the XUSD described here (link) stabilised by a CFD pair...? Please analyse USDT coding construction and let us know....?? https://bitcoinmagazine.com/articles/mastercoin-a-second-generation-protocol-on-the-bitcoin-blockchain-1383603310/

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