Altcoins Talks - Cryptocurrency Forum
Cryptocurrency Ecosystem => Stable Coins Forum => USDT Forum => Topic started by: CryptoZenWorld on July 18, 2018, 03:17:19 AM
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I still don't understand the idea behind the coin Tether. How they backed their token and how it is always equal to $1 USD. and why they are not transparent about this issue. Is there any great explanation guys?
Thanks.
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Looking back from what I've watched before in youtube but I can't remember the name, and the content of the video is about a project advertising its coin that will not be subject to volatile and it is part of a utility token. Maybe USDT is the same.
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I still don't understand the idea behind the coin Tether. How they backed their token and how it is always equal to $1 USD. and why they are not transparent about this issue. Is there any great explanation guys?
Thanks.
The price I assume is based on its digital representation of 1$... It certainly won't be worth a dollar if it's proven that it's not backed up in USD and would cause a massive exit which is what people fear. If you have 500 million dollars in a bank account and its 500 million tether coins, the assumption is that it's a dollar usage for exchanges that don't work in actual fiat like Bitfinex... its a way of creating a USD tied digital float on exchanges that don't interact directly with bank accounts but have the supposed liquid stored value to tokenize their holdings. Now whether they do or not is another story... lol.
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I also thought Tether was always valued exactly $1, but I recently saw it around 0.1.
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Yeah, Tether was actually valued and backed by a US Dallas ($1). It is a cryptocurrency asset issued on the Bitcoin blockchain via the Omni Layer Protocol.
Again, Tether currencies were created to facilitate the transfer of national currencies, to provide users with a stable alternative to Bitcoin and to provide an alternative for exchanges.
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Thinking again from what I've viewed before in internet. The substance of the video is about an undertaking promoting its coin that won't be liable to unstable and it is a piece of an utility token. Perhaps USDT is the same.The value I accept depends on its computerized portrayal of 1$. It absolutely won't be justified regardless of a dollar if it's demonstrated that it's not upheld up in USD and would cause an enormous leave which is the thing that individuals fear. On the off chance that you have 500 million dollars in a financial balance and its 500 million tie coins, the suspicion is that it's a dollar utilization for trades that don't work in genuine fiat like Bitfinex. its a method for making a USD tied computerized skim on trades that don't connects.straightforwardly with financial balances however have the gathered fluid put away an incentive to tokenize their possessions.
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I still don't understand the idea behind the coin Tether. How they backed their token and how it is always equal to $1 USD. and why they are not transparent about this issue. Is there any great explanation guys?
Thanks.
This is because most exchanges uses Tether as their base pair. BTC/USDT, ETH/USDT, etc... An exchange giving a pair like USDT/USD would determine this cryptocurrency price like it happened in one exchange. I forget its name. This raised issues and I think they solved it.
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USDT this mean usd tether, dollar tether
this mean fiat money in crypto curency, so tether flate rate equal with dollar value
and you ca withdraw tether with real money in official site tether, if not wrong tether.to
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cause Tether is USD but Digital version
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That is why if the Tether changes its price then we suspect the party is a developer.
This coin is designed for USD balance and it cannot change more, because when there is such a sharp decline it can say Tether's failure.
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That was how tether was built. It’s like a digital representation of USD. This means it value is expected to always hover around 1$ such that there wouldn’t be much appreciable change in its value.
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I think Tether was created to hold FIAT in the form of cryptocurrency.
So the function can be used by any country when you are traveling and with great value, the Tether trade is profitable.
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Bitfinex create each Tether in return money in their case. Thats why when Bitfinex earn 20 million USD, it prints 20 million Tether. So Tether price always stable to 1 USD.
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I don't agree that the Tether is always stable because the market value of a coins is dependent on the crypto market situation.
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it's true and it makes a question for us all, and in my opinion it will be a USD value in the coin trade, but we actually need a more detailed explanation.
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Tether is made as a stablecoin, it is for those who want to hold crypto for a while but do not want the dollar value of their tokens to change, I use tether a lot especially when I sense that there would be a downward spiral in the market, I convert to tether and after the reduction in prices, I buy back a higher number of tokens at the same dollar price.
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One of the reasons here is the fact that USDT or Tether is backed with legit US dollars and this is why the price of this coin is
stable and it won't change from $1 dollar. This is also one of the most used cryptocurrencies and you can see on coin market
cap that it is always top two in volume.
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Because this stable coin backed up by dollar, or not. Then they do a audit?
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This is question I have been asking, just according to the topic, I would also want to know why it is always so. And how it can break that price.
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Because there are many requests from people who understand the fluctuations caused by Bitcoin and altcoins.
So, there must be someone or company that is capable of becoming a stable coin pioneer.
So from that comes several stable coins like Tether, trueUSD, DIGIX and bitUSD .
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This token must be 1 to the same as the USD that is widely circulated in markets around the world.
If there is no match, the result is broken and it's a big mistake from Tether.
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Because this is not a coin for profit. This is a coin that should identify one unit of a certain ordinary currency. It is just a buffer between different types of cryptocurrency or between cryptocurrency and regular currency.
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That is the main idea behind tether that is stability. Tether is just the digital or online form of the US dollar. That's my understanding of tether though.
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the token is pegged to fiat currency to avoid volatile tokens . also to avoid sudden liquidity of your funds. they have benefits. high benefits. if you are a newbie trader, i suggest you trade against the usdt(tether) to avoid loosing your money.
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This is question I have been asking, just according to the topic, I would also want to know why it is always so. And how it can break that price.
USDT is a digital copy of the dollar. One such coin must be backed by one dollar. This is, in fact, not a full-fledged cryptocurrency, because it is not intended for profit and should not deviate in its price from one, that is, one dollar. This coin is designed for ease of use of conventional cryptocurrency. So she simply cannot deviate much in her price from a unit.
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It is designed to become the digital version of USD and be the price of USD as it is. Having the fact that it is a stable coin, it is mainly use to take the profits from your gains in the crypto.
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Tether is a stable coin with its coin price situated at $1, backed up by the USD. It is to make a no or less losses in the crypto market, giving the crypto users an experience of stable market. Therefore, Tether is always valued at $1 because that is what it was made and proven to be, not going above that.
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This is question I have been asking, just according to the topic, I would also want to know why it is always so. And how it can break that price.
Coin Tether is actually a digital dollar shell. It was conceived as a dollar in the world of cryptocurrencies, to provide ease of use of cryptocurrency. Therefore, the value of a digital dollar in the form of a Tether can not differ at the rate of the usual dollar. Only in various crisis situations in cryptocurrency, when the demand for this stable coin rises or falls, there is a slight tether fluctuation from one, that is, from one dollar. However, when the market calms down, the tether invariably has to return to unity again.
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In addition, the main use case of Tether is to provide stability to this wild volatile crypto market and provide a stable use case to:
1.Blockchain companies
2.Exchanges
3.Individuals & Traders
By leveraging the blockchain technology, Tether allows you to store, send, and receive digital tokens pegged to dollars.
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I never converted my crypto to tether, but the ideas but the idea behind tether it's the digital equivalent of a dollar bill. Instead of selling your crypto to usd your selling it to Tether.
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USDT is a digital copy of the dollar. One such coin must be backed by one dollar. This is, in fact, not a full-fledged cryptocurrency, because it is not intended for profit
There is this widespread view that Stablecoins are not 100% (full-fledged) cryptocurrencies.
Just found another one :)
The USDT is indeed one of the most stable coins, but this is a special cryptocurrency, backed by the exact amount of dollars, and it is generally quite difficult to call it a cryptocurrency. It cannot, like other cryptocurrencies, be used for profit.
https://www.altcoinstalks.com/index.php?topic=76347.0
I think this is a conceptual mistake.
In my view, a currency (money) is not there to make profits, it is there to buy goods and services.
A currency is good or bad in as much as it serves as medium of exchange and store of value, which means Stablecoins are better cryptocurrencies than, say, Bitcoin.
The idea that real cryptos are there to make profit derives from the fact that the first cryptos were loaded with so much volatility that trading them could bring out profits.
Maybe after Stablecoins will have established themselves, a new understanding of the word cryptocurrencies will established itself too
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I still don't understand the idea behind the coin Tether. How they backed their token and how it is always equal to $1 USD. and why they are not transparent about this issue. Is there any great explanation guys?
Thanks.
At the beginning of 2018, many did not understand the principle of operation and the purpose of stable coins. Now, I think, our explanations are no longer needed, because there are already more than three hundred different stable coins, and information about them can be found everywhere. After the scandals with the advent of the stable coin Libra, national stable coins of various states should now appear in large numbers. Now the entire population of the Earth will soon know about stable coins, in any case, at least their own state.
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Tether is a good stable coin hence its price never change. It is backed by governments and central banks of different countries.
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I have heard in another forum where he told the admin will control the value of price by adding or removing cons whenever the price increases. This way it can be stable all the time at $1 only. I too thought this thing several times but the guy cleared me about Stable coins.
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At the beginning of 2018, many did not understand the principle of operation and the purpose of stable coins. Now, I think, our explanations are no longer needed, because there are already more than three hundred different stable coins, and information about them can be found everywhere. After the scandals with the advent of the stable coin Libra, national stable coins of various states should now appear in large numbers. Now the entire population of the Earth will soon know about stable coins, in any case, at least their own state.
I think we should distinguish between stablecoins and state/government's currencies being put on the blockchain.
The latter are nothing but the same old fiat money, just circulating on the blockchain.
At first it circulated hand to hand (paper).
Then it circulated electronically (on line).
Now on blockchain.
This is no real innovation, under monetary perspective.
It's the old, same, fake fiat money, controlled by the central banks.
Private stablecoins, that's the real deal.
This is the monetary revolution.