USDT is the fuel that powers a lot the crypto ecosystem. Good luck trying to move USD around between different places in the crypto ecosystem (especially outside office hours). While possible it's complicated, slow and has terrible uptime.
The biggest crypto markets in the world are quoted in tether.
No one needs USDT anymore. The fact that even Binance gets more credibility than Tether should tell you how scammy the people still trading USDT really are.
I'd be careful about adding Stasis to this list. Discord users have been complaining about not being able to withdraw through their platform for some time now.
This casually ignores the point being made. Tether is a fuel. USDT printed money without backing and pumped it into exchanges/btc/eth.
Without that upward pressure, there will be nothing preventing btc/eth from freefalling. Heck without that, what is the point of the above coins either.
If this was two weeks ago you most certainly would have included UST at the top of this list.
People reading this should definitely question the other ones on the list as well. what proof do we have that the rest of these coins are really stable?
100% agree to that list. I moved from USDT to USDC months ago. And now, that the exchange rate is very good i relocated around 80% on my stablecoins in EURS.
My opinion with EURS and the company stasis that issue this stablecoin is very positive, simply no problems. I feel safe holding eurs cause it is backed with fiat money. Never liked the synthetic assets, so for the moment i am good with Eurs and Usdc for the euro and dollar part of my portfolio..
Binance doesn't have that much to do with BUSD. It's a white labeled version of USDP run by Paxos which is an American fintech company not related to Binance.
Tether is the fuel for unlicensed unregulated exchanges that are happy to list the shit coins that legit exchanges won't touch because they're pump and dump scams. All those sketchy exchanges are almost certainly not keeping client funds segregated either so when Tether goes down all those exchanges will become insolvent and probably just disappear with the rest of the money.
The wisdom of holding is always relative to the rest of the market and what else you could be holding. Imagine a metals exchange. If copper were going up in value compared to the other metals, you’d want to hold copper. But you can also sell all your metals for cash. You would do this when all the metals are going down in value, which means USD is the “best-performing metal” and you want to be holding it. You always want to be holding the thing going up in value the most. Sometimes it’s USD, and the fact that it is also your reference point for pricing everything else doesn’t mean it’s not front of the pack sometimes. Obviously when you buy USD with your copper, the value of USD goes up. But since it’s all denominated in USD, that just looks like “all metals go down in price but especially copper”, and because so many other markets set the value of USD, it really just looks like “copper goes down”. It’s similar to the relative velocities etc you do when you study physics.
So primetime for holding cash is when there is deflation and you expect to be able to buy more for your dollars later, so you stash it in a bank account or under your mattress. This is generally bad for a regular economy because people stop spending and the economy slows down. That’s why there’s always a little bit of inflation, because better that than deflation! Inflation makes people use their money lest it lose value / gather dust sitting still, and spending money makes the economy run. Having to beat inflation with your investment is a chore, but it’s better that everybody individually decides to do something with their money. I digress.
For Tether, where the only things you can really buy are other cryptocurrencies, deflation just looks like a crypto bear market. So people are likely holding USDT right now.
At the same time, given that the value of USD is set by many trillions of dollars changing hands and millions of contracts priced in it every day, compared to Tether which is like a gift card for a record store that might go out of business, it’s possible for USDT to get unpegged if that record store posts bad results. The strength of the proposition that USDT can be redeemed for USD is the only thing holding it together.
rglullis|3 years ago
jules-jules|3 years ago
kd913|3 years ago
Without that upward pressure, there will be nothing preventing btc/eth from freefalling. Heck without that, what is the point of the above coins either.
cuteboy19|3 years ago
People reading this should definitely question the other ones on the list as well. what proof do we have that the rest of these coins are really stable?
Combative268|3 years ago
thebean11|3 years ago
hihihihi1234|3 years ago
newbie13|3 years ago
unknown|3 years ago
[deleted]
overtonwhy|3 years ago
TomSwirly|3 years ago
cormacrelf|3 years ago
So primetime for holding cash is when there is deflation and you expect to be able to buy more for your dollars later, so you stash it in a bank account or under your mattress. This is generally bad for a regular economy because people stop spending and the economy slows down. That’s why there’s always a little bit of inflation, because better that than deflation! Inflation makes people use their money lest it lose value / gather dust sitting still, and spending money makes the economy run. Having to beat inflation with your investment is a chore, but it’s better that everybody individually decides to do something with their money. I digress.
For Tether, where the only things you can really buy are other cryptocurrencies, deflation just looks like a crypto bear market. So people are likely holding USDT right now.
At the same time, given that the value of USD is set by many trillions of dollars changing hands and millions of contracts priced in it every day, compared to Tether which is like a gift card for a record store that might go out of business, it’s possible for USDT to get unpegged if that record store posts bad results. The strength of the proposition that USDT can be redeemed for USD is the only thing holding it together.
lampshades|3 years ago
vagab0nd|3 years ago