Tether (USDT) price falling to $0.95 • Hacker News Board

Re: Tether (USDT) price falling to $0.95

#51

Post by JumpCrisscross » Mon, Oct 15, 2018, 2:37 PM UTC

bmh wrote: post #49

zamadatix wrote: post #34

Earlier quoted context omitted.

$2,000,000,000+ worth issued without proof of backing? What value did Tether add that people were willing to deal with it as a middleman to dollars? Side note: The graph could use some TLC. The colors are indistinguishable and there are no static historical charts on the page, just the graph since my visit.

A major use of USDT is that you can sell your cryptos when they're high, converting them to USDT, which holds it's value. Then, when the crypto prices drop, you buy in again, and repeat. By keeping it entirely in the crypto space, your country's tax system can't charge you for capital gains.

> By keeping it entirely in the crypto space, your country's tax system can't charge you for capital gains

This is blatant, willful and permanently-documented tax evasion, an amusing combination of illegality and stupidity.

Re: Tether (USDT) price falling to $0.95

#52

Post by caioariede » Mon, Oct 15, 2018, 2:42 PM UTC

wyldfire wrote: post #43

jpatokal wrote: post #19

I built this site in February this year in anticipation: http://www.untether.space/ The spread between Bitcoin priced in Tether and Bitcoin priced in USD has been holding steady at For the curious, source at https://github.com/jpatokal/untether and also submitted as a Show HN at https://news.ycombinator.com/item?id=18219034 .

The graph is tough to read as is. There's no labels for the x data and they y is autoranged. As of 1020 Eastern US time today, all I see are two horizontal lines. So I can see that both the Tether/Bitfinex/Bittrex/Poloniex cluster and the USD/Bitstamp/Kraken clusters are stable. But without an x label I can't tell if they're stable over the last hour, month, or year. * If I mouse-over the x ticks, I can see that the…

I'm using the web archive to compare:

https://web.archive.org/web/*/http://www.untether.space

EDIT: seems like Feb will always display 0.41% and the rest is 27.02%

Re: Tether (USDT) price falling to $0.95

#53

Post by toast0 » Mon, Oct 15, 2018, 2:42 PM UTC

bmh wrote: post #49

zamadatix wrote: post #34

Earlier quoted context omitted.

$2,000,000,000+ worth issued without proof of backing? What value did Tether add that people were willing to deal with it as a middleman to dollars? Side note: The graph could use some TLC. The colors are indistinguishable and there are no static historical charts on the page, just the graph since my visit.

A major use of USDT is that you can sell your cryptos when they're high, converting them to USDT, which holds it's value. Then, when the crypto prices drop, you buy in again, and repeat. By keeping it entirely in the crypto space, your country's tax system can't charge you for capital gains.

Your country may not automatically get tax records, but I'm pretty sure both exchanges would be taxable transactions under US tax rules.

Re: Tether (USDT) price falling to $0.95

#54

Post by vidarh » Mon, Oct 15, 2018, 2:44 PM UTC

charlietango92 wrote: post #50

bmh wrote: post #49

Earlier quoted context omitted.

A major use of USDT is that you can sell your cryptos when they're high, converting them to USDT, which holds it's value. Then, when the crypto prices drop, you buy in again, and repeat. By keeping it entirely in the crypto space, your country's tax system can't charge you for capital gains.

pardon my ignorance, but wouldn't you eventually convert your USDT to 'real'/fiat currency at some point? It would be taxed then as 'other income' right?

I'm guessing the theory (which may or may not be tax evasion depending on your local tax code) is that you're not taking the profit until you sell for fiat or take it out of the exchange.

Re: Tether (USDT) price falling to $0.95

#55

Post by vidarh » Mon, Oct 15, 2018, 2:46 PM UTC

himlion wrote: post #39

londons_explore wrote: post #36

Earlier quoted context omitted.

We have no proof $2B were issued. It's possible that $2M were issued, and the rest don't even exist (or rather they are still controlled by the tether organisation).

We don't have proof, but what would their incentive be to print them but not issue them?

To appear more credible would be one possible incentive.

Re: Tether (USDT) price falling to $0.95

#56

Post by tomjen3 » Mon, Oct 15, 2018, 2:46 PM UTC

toast0 wrote: post #53

bmh wrote: post #49

Earlier quoted context omitted.

A major use of USDT is that you can sell your cryptos when they're high, converting them to USDT, which holds it's value. Then, when the crypto prices drop, you buy in again, and repeat. By keeping it entirely in the crypto space, your country's tax system can't charge you for capital gains.

Your country may not automatically get tax records, but I'm pretty sure both exchanges would be taxable transactions under US tax rules.

Maybe, but whoes to say these people are under the US Tax system?

Re: Tether (USDT) price falling to $0.95

#57

Post by rtkwe » Mon, Oct 15, 2018, 2:47 PM UTC

toast0 wrote: post #53

bmh wrote: post #49

Earlier quoted context omitted.

A major use of USDT is that you can sell your cryptos when they're high, converting them to USDT, which holds it's value. Then, when the crypto prices drop, you buy in again, and repeat. By keeping it entirely in the crypto space, your country's tax system can't charge you for capital gains.

Your country may not automatically get tax records, but I'm pretty sure both exchanges would be taxable transactions under US tax rules.

Only have a cursory understanding of capital gains but shouldn't the exchange out of Tether back into $Crypto have zero gains if it's working as intended since there's no change in value of your holding?

Re: Tether (USDT) price falling to $0.95

#58

Post by teilo » Mon, Oct 15, 2018, 2:48 PM UTC

JumpCrisscross wrote: post #51

bmh wrote: post #49

Earlier quoted context omitted.

A major use of USDT is that you can sell your cryptos when they're high, converting them to USDT, which holds it's value. Then, when the crypto prices drop, you buy in again, and repeat. By keeping it entirely in the crypto space, your country's tax system can't charge you for capital gains.

> By keeping it entirely in the crypto space, your country's tax system can't charge you for capital gains This is blatant, willful and permanently-documented tax evasion, an amusing combination of illegality and stupidity.

No, it’s not. It means you don’t pay capital gains when you’re merely exchanging one form of crypto for another. You have not realized any gains until you have converted your crypto into real assets. Converting from one form of crypto to another for the purposes of arbitrage only delays the taxes. It never eliminates them.

This is really no different than selling and buying stocks in an IRA account.

Re: Tether (USDT) price falling to $0.95

#59

Post by lojack » Mon, Oct 15, 2018, 2:48 PM UTC

bmh wrote: post #49

zamadatix wrote: post #34

Earlier quoted context omitted.

$2,000,000,000+ worth issued without proof of backing? What value did Tether add that people were willing to deal with it as a middleman to dollars? Side note: The graph could use some TLC. The colors are indistinguishable and there are no static historical charts on the page, just the graph since my visit.

A major use of USDT is that you can sell your cryptos when they're high, converting them to USDT, which holds it's value. Then, when the crypto prices drop, you buy in again, and repeat. By keeping it entirely in the crypto space, your country's tax system can't charge you for capital gains.

In the US you can be charged on those capital gains. Capital gains are assessed at time of sale, this includes both Crypto-Fiat as well as Crypto-Crypto.

Re: Tether (USDT) price falling to $0.95

#60

Post by nerdponx » Mon, Oct 15, 2018, 2:49 PM UTC

himlion wrote: post #39

londons_explore wrote: post #36

Earlier quoted context omitted.

We have no proof $2B were issued. It's possible that $2M were issued, and the rest don't even exist (or rather they are still controlled by the tether organisation).

We don't have proof, but what would their incentive be to print them but not issue them?

To make people think it was popular, stable, and safe.