Tether: The Story So Far

Post by gamblor956 » Mon, Oct 28, 2019, 5:16 PM UTC

repomies691 wrote: post #10

patio11 wrote: post #3

Earlier quoted context omitted.

I'd be interested if you think there's anywhere I make a strong claim without appropriately strong evidence. There are a lot of strong claims, but I'm justifiably confident of them. Many of them are cited inline.

It is more about the general "conspiracy" tone of the article. It is like "OMG banks can create money, what a conspiracy" by some people who are surprised by the facts on how financial system works when they finally learn some basics. There is strong demand for any kind of vehicle which allows transferring value digitally outside of the traditional banking system. I don't think tether users trust tether because they…

Post by kaffeemitsahne » Mon, Oct 28, 2019, 5:21 PM UTC

pg_bot wrote: post #28

Cryptocurrencies are a religion. I find the idea that anyone would want to hold a large amount of any currency idle for a long period of time baffling. Yet this is the premise that so many people who are speculating in cryptocurrency "investments" have bought into. Then you add on top of that terrible user experience, slow transaction times, and lack of any theft protection and I don't understand why any sane person…

Post by patio11 » Mon, Oct 28, 2019, 5:24 PM UTC

gamblor956 wrote: post #31

repomies691 wrote: post #10

Earlier quoted context omitted.

It is more about the general "conspiracy" tone of the article. It is like "OMG banks can create money, what a conspiracy" by some people who are surprised by the facts on how financial system works when they finally learn some basics. There is strong demand for any kind of vehicle which allows transferring value digitally outside of the traditional banking system. I don't think tether users trust tether because they…

There is strong demand for any kind of vehicle which allows transferring value digitally outside of the traditional banking system. Crypto supporters have been saying this for a decade, but outside of money laundering, drug sales, and hodle profiteering, no such demand has been shown to exist. Of course the huge demand has been spotted by many others and now there are loads of these "stablecoins". Some are more regul…

Post by jacobush » Mon, Oct 28, 2019, 5:28 PM UTC

BubRoss wrote: post #30

repomies691 wrote: post #6

Earlier quoted context omitted.

I'm not advocating for tether. But it is not a ponzi scheme. And I think that most of the users understand what tether is - they are not excepting returns, they also understand that it is unregulated vehicle where the backing can disappear any time if the issuers get into trouble. I would guess biggest use-case is moving fiat between exchanges without having compliance issues, which you would have with banks.

It does fill a need, and no one expects returns from it, but it most likely is fractionally reserved by btc. This means that if the price of btc drops too low and too many people cash out then it's over, because each tether cashed out will mean more and more btc are required.

Post by Redoubts » Mon, Oct 28, 2019, 5:29 PM UTC

nostrademons wrote: post #25

arzt wrote: post #14

"Players in the crypto ecosystem will be shocked, shocked to know it got this bad, this quickly, but this has been an open secret for over a year." ---- I'm not entirely in agreement the crypto world will be shocked tether is insolvent. As long the the fiat gateways exist to exit the system with gains intact, most could care less about tether. It's musical chairs.

Yeah, people have been saying that the Tether stuff is super shady and just waiting for the bubble to pop for the better part of 3 years. It's very much been an open secret.