Altcoins Talks - Cryptocurrency Forum
Crypto Discussion Forum => Cryptocurrency discussions => Technical Discussion => Topic started by: TokenTactician24 on July 10, 2024, 12:23:32 PM
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Hello guys,
Have you seen the USDT transaction volume lately? It's insane! 🚀 In July 2024, it hit $1.3 trillion, way more than BTC's $800 billion and ETH's $600 billion. USDT is like the comfy pillow for traders: stable, always there, and super popular!
This heavy reliance on USDT is like putting all our eggs in one basket. If something goes wrong with USDT, it would be a disaster! Plus, this obsession with stablecoins might overshadow our dear BTC and ETH, pushing them aside.
But, if USDT crashes, it would be like a clown losing his red nose in the middle of a circus act – total chaos and nervous laughs!
What do you think? Are we becoming too dependent on stablecoins? What could be the long-term impacts on the market?
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Since it is the first one to be established, it's definitely one of the things that gives confidence for it being used, just like BTC. We all know all the scrutiny with USDT and how it compares to a better stable coin like USDC.
We are dependent on it because the value we see always is in USD. It's always going to be like that.
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USDT has become something closer to the US dollar, it is based on promises even though we believe that they do not own even 20% of $1.3 trillion. most of the trading pairs are in USDT
Stablecoins are not long-term investment, so you should use them for the purpose of stabilizing trading prices for a short time, and if you want to keep your money for a long period, it is better to exchange it to US dollar or your local currency.
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Usdt is much better and more transparent now than it was few years ago.
You can see all ysdt reserves here
https://tether.to/en/transparency/
84.05% Cash & Cash Equivalents & Other Short-Term Deposits
0.02%Corporate Bonds
3.31%Precious Metals
4.87%Bitcoins
3.45%Other Investments
4.29%Secured Loans
I think there are either stablecoins, and the chances of happening something to usdt is low.
That being said, I hold only a few bucks in usd (about 200 usdt)
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Usdt is much better and more transparent now than it was few years ago.
You can see all ysdt reserves here
https://tether.to/en/transparency/ (https://tether.to/en/transparency/)
84.05% Cash & Cash Equivalents & Other Short-Term Deposits
0.02%Corporate Bonds
3.31%Precious Metals
4.87%Bitcoins
3.45%Other Investments
4.29%Secured Loans
Without a third party verifying the accuracy of these statistics, they do not prove anything, but it is difficult to trust that tether has $110,289,406,409.00 in assets.
If something happens and everyone burns USDT for Bitcoin or Cash, the currency will collapse.
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Without a third party verifying the accuracy of these statistics, they do not prove anything, but it is difficult to trust that tether has $110,289,406,409.00 in assets.
If something happens and everyone burns USDT for Bitcoin or Cash, the currency will collapse.
But no user can "burn" usdt. Only tether can do that.
When you trade usdt>btc someone buys that usdt from you. If there isn't anyone to buy, btc price goes lower and then someone accepts your offer. This is how it works.
Only exchanges could go to tether and convert usdt > usd directly from tether. This would cause tether to burn coins.
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This heavy reliance on USDT is like putting all our eggs in one basket. If something goes wrong with USDT, it would be a disaster! Plus, this obsession with stablecoins might overshadow our dear BTC and ETH, pushing them aside.
But, if USDT crashes, it would be like a clown losing his red nose in the middle of a circus act – total chaos and nervous laughs!
What do you think? Are we becoming too dependent on stablecoins? What could be the long-term impacts on the market?
It seems to confirm that people still believe more in centralized solutions, and in those that rely to the greatest extent on the system to which BTC is an alternative. When someone says that he does not believe in USD, and at the same time keeps his value in USDT, then something is really wrong. A private company issues tokens that are mostly pegged to the US dollar, and can be frozen no matter where they are - it's really unbelievable how dangerous it all is.
I agree that the collapse of this stablecoin would cause real chaos, therefore I consider it a kind of Trojan horse in the crypto world - and who says that the US government is not behind everything?
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It seems to confirm that people still believe more in centralized solutions, and in those that rely to the greatest extent on the system to which BTC is an alternative. When someone says that he does not believe in USD, and at the same time keeps his value in USDT, then something is really wrong. A private company issues tokens that are mostly pegged to the US dollar, and can be frozen no matter where they are - it's really unbelievable how dangerous it all is.
I agree that the collapse of this stablecoin would cause real chaos, therefore I consider it a kind of Trojan horse in the crypto world - and who says that the US government is not behind everything?
I think USDT is only used for transactions anymore. If, for example, the two of us trade something, it is much more precise to do everything in USDT, because the price will not be able to deviate much until the transaction is completed.
Add to that the problems that arose with Bitcoin network congestion, and high fees, when Bitcoin stores were too expensive.
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It seems to confirm that people still believe more in centralized solutions, and in those that rely to the greatest extent on the system to which BTC is an alternative. When someone says that he does not believe in USD, and at the same time keeps his value in USDT, then something is really wrong. A private company issues tokens that are mostly pegged to the US dollar, and can be frozen no matter where they are - it's really unbelievable how dangerous it all is.
I agree that the collapse of this stablecoin would cause real chaos, therefore I consider it a kind of Trojan horse in the crypto world - and who says that the US government is not behind everything?
I think USDT is only used for transactions anymore. If, for example, the two of us trade something, it is much more precise to do everything in USDT, because the price will not be able to deviate much until the transaction is completed.
Add to that the problems that arose with Bitcoin network congestion, and high fees, when Bitcoin stores were too expensive.
People also use it a lot in Defi and other exchanges for trading.
Personally, I have used it a lot when converting ETH > USDT using some different Defi, when ETH price was very high.
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What do you think? Are we becoming too dependent on stablecoins? What could be the long-term impacts on the market?
Long term lessons won't be learned by most of the people :P
I have nothing against using stable coins with lower fees when you want to pay for something, but I don't understand holding large amounts of any stable coin.
All fiat currencies are constantly losing value so anyone who think that he is ''stable'' and secure is very wrong.
In not so distant future I think that most fiat currencies will collapse, maybe sooner than later, and they will bring with then USDT and all other stable coins.
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Without a third party verifying the accuracy of these statistics, they do not prove anything, but it is difficult to trust that tether has $110,289,406,409.00 in assets.
If something happens and everyone burns USDT for Bitcoin or Cash, the currency will collapse.
Tether claim they've been audited few times, where the result available on their website. But i remember some people point oddness on those audit and Tether used to delay audit process for years.
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@examplens & @bitmover, I will not dispute the usefulness and practicality of stablecoins, but that will never dispute the fact that it is a centralized and private cryptocurrency that has a kill switch for instant shutdown. Here we are talking about more than $100 billion that can be frozen at any time for any reason the US authorities can think of.
I wonder if one day digital $ (CBDC) will be as popular as USDT...?
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I wonder if one day digital $ (CBDC) will be as popular as USDT...?
I think CBDC are even worth.
However, they won't show up in the US soon. They are prohibiting it there
https://www.coindesk.com/policy/2024/05/23/us-house-passes-bill-banning-federal-reserve-from-issuing-a-cbdc/
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We are dependent on it because the value we see always is in USD. It's always going to be like that.
Weird, with all this talk about de dolarization I would have expected the stable yuan, the pokemon rupee and the cracked ruble to be the ones replacing the dollar! :D
Weird that while crypto lovers always chant about the death of the USDT they use USDT more than they use Bitcoin! Another fine example that the pocket and the stomach weights heavier than the propaganda on tv!
I wonder if one day digital $ (CBDC) will be as popular as USDT...?
If ever launched? Way more!
Convenience, no volatility, someone to call when something goes wrong, funds insured...
CBDC would trash stablecoins in an instant then a ton of 3rd party payments.
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@bitmover, if we assume that the political figures will change in a few months with the very likely arrival of a new president who, as everyone claims, is completely pro crypto - then perhaps attitudes towards CBDC will also change - because if he/they have nothing against Bitcoin, then why would he/they have anything against the digital dollar?
I already posted the following link somewhere at least once, but if you haven't read what was cooked up in the past under Trump, let's say that he is not the only enterprising character in that family.
The idea of a digital U.S. dollar had an early behind-the-scenes advocate inside the Trump administration in the president’s son-in-law, newly unearthed documents show.
On May 28, 2019, Jared Kushner, special adviser to the president and Ivanka Trump’s husband, emailed Treasury Secretary Steven Mnuchin. The message included a link to a blog post by Sam Altman, former head of Y Combinator, the Silicon Valley startup incubator.
I wonder if one day digital $ (CBDC) will be as popular as USDT...?
If ever launched? Way more!
Convenience, no volatility, someone to call when something goes wrong, funds insured...
CBDC would trash stablecoins in an instant then a ton of 3rd party payments.
I think the same, and therefore it is difficult for me to imagine that CBDC will not become a reality in the US - unless someone from high politics and from the top rich participates in the USDT project and can lobby for CBDC not to be approved. No matter how we look at it, both "projects" have something in common - they print their "tokens" out of thin air, when needed and as much as needed.
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I wonder if one day digital $ (CBDC) will be as popular as USDT...?
If ever launched? Way more!
Convenience, no volatility, someone to call when something goes wrong, funds insured...
CBDC would trash stablecoins in an instant then a ton of 3rd party payments.
I think the same, and therefore it is difficult for me to imagine that CBDC will not become a reality in the US - unless someone from high politics and from the top rich participates in the USDT project and can lobby for CBDC not to be approved. No matter how we look at it, both "projects" have something in common - they print their "tokens" out of thin air, when needed and as much as needed.
I think there is great privacy movement in US, which will stop CBDC for a while. It doesn't matter who is the president, the congress must approve it.
Individual rights are important in US. Let´s see, but I believe we wont see CBDC there for a while (maybe never)
In the name of financial privacy, the U.S. House of Representatives (the House) passed a bill banning CBDCs (central bank digital currency) in the United States. This has implications across many financial areas, affecting investors as well. The official name of this landmark decision, written to protect American financial privacy, is the CBDC Anti-Surveillance State Act. The legislation would prohibit the Federal Reserve from issuing a CBDC without explicit Congressional authorization.
https://www.msn.com/en-us/money/markets/the-u-s-house-s-cbdc-ban-and-its-implications-for-investors/
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I wonder if one day digital $ (CBDC) will be as popular as USDT...?
CBDC is a government entity, of course its introduction will be carried out on a massive scale so that not even the lower classes of society are overlooked and there will definitely be massive funding by the government in order to raise this awareness.
I'm confused, they uphold privacy and on the other hand they fight mixers.
In the name of financial privacy,...
https://www.msn.com/en-us/money/markets/the-u-s-house-s-cbdc-ban-and-its-implications-for-investors/
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I'm confused, they uphold privacy and on the other hand they fight mixers.
In the name of financial privacy,...
https://www.msn.com/en-us/money/markets/the-u-s-house-s-cbdc-ban-and-its-implications-for-investors/
AFAIK, all banned mixers had some link to illegal activities in the past.
Privacy is an individual right. Mixers are not illegal.
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AFAIK, all banned mixers had some link to illegal activities in the past.
Privacy is an individual right. Mixers are not illegal.
For many things, changes in the law and their interpretation play a big role in marking something as legal or illegal.
For example, Samourai Wallet was legitimate up to a point, then someone decided they crossed the line the service was declared illegal, and the founders were arrested. So, the same thing changed its legitimacy within a month.
Wasabi, for example, after seizing Samurai, declaratively removed the risk coinjoin function (one that can be interpreted differently) and thus went through the path of legitimate -> the edge of illegality -> legitimate again. Now everything critical is separated through the coordinators, the functionality is approximately the same, but it is considered legal. For now.
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I think the same, and therefore it is difficult for me to imagine that CBDC will not become a reality in the US - unless someone from high politics and from the top rich participates in the USDT project and can lobby for CBDC not to be approved. No matter how we look at it, both "projects" have something in common - they print their "tokens" out of thin air, when needed and as much as needed.
As weird as it seems my bet is on the EU first then the US.
The whole thing with having the FED as opposed to the ECB which has the mandate to print currency while this is held by the Treasury in the US, so while they will fight in bureaucracy the EU might take the lead!
AFAIK, all banned mixers had some link to illegal activities in the past.
Privacy is an individual right. Mixers are not illegal.
Pretty simple reasoning!!
By law, you have the privacy of the money you have obtained legally not to be spied upon on what you use them for.
The moment you try to actively hide money no matter what your privacy ends.
Again, this is the law, not my opinion.
I can send 100k to my relatives outside the country via a bank with no problem, going with 100k in my pockets across the border would have my funds confiscated.
The law punishes the intention, not right of course, but this is the law right now at least their law!
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Are these USDT stats including activity on all supported chains (like TRC20 and others) or just ERC-20v
Because if it's the latter and you factor in gas fees, I'd be inclined to think that the transaction volume on ETH comes really close to the volume for USDT.
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I think the same, and therefore it is difficult for me to imagine that CBDC will not become a reality in the US - unless someone from high politics and from the top rich participates in the USDT project and can lobby for CBDC not to be approved. No matter how we look at it, both "projects" have something in common - they print their "tokens" out of thin air, when needed and as much as needed.
As weird as it seems my bet is on the EU first then the US.
The whole thing with having the FED as opposed to the ECB which has the mandate to print currency while this is held by the Treasury in the US, so while they will fight in bureaucracy the EU might take the lead!
It is possible that the EU will be the first to issue a CBDC because some statements by our dear Christina indicated that it could be around 2025 (if I am not mistaken). Her fear and persistent mention of stablecoins as the biggest threat to the euro could result in us getting a digital euro much sooner than we hope. Although it was initially mentioned that everyone will be able to have a maximum of EUR 300 in their digital wallet.
Recently, the governor of my central bank stated something about this topic, and among other things, he stated that the digital euro will enable maximum privacy because no one will be able to see these transactions. The man has a very bad understanding of what he is talking about, because the CBDC will enable far greater control over transactions, as if this is not already the case with card payments and mobile banking.
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Recently, the governor of my central bank stated something about this topic, and among other things, he stated that the digital euro will enable maximum privacy because no one will be able to see these transactions. The man has a very bad understanding of what he is talking about, because the CBDC will enable far greater control over transactions, as if this is not already the case with card payments and mobile banking.
Well Theoretically CBDC could have enhanced privacy, if it was something like monero.
Ofc , that won't happen.
The best privacy for any fiat currency is still the simple cash.
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@bitmover, CBDC is nothing but centralized digital fiat and the goal of all this is to enable maximum control over how people spend money and to prevent any bad transactions. If we look at the fact that CBDC first came to life and is already widely used in China, then this is enough proof of who benefits the most from something like that.
Until they start forcing us to use CBDC, we will have at least some kind of privacy, and then we will obviously be left with using cryptocurrencies for that purpose. I wonder if then the pressure on BTC and especially some cryptocurrencies that focus on privacy will become even greater than it is now?
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However, they won't show up in the US soon. They are prohibiting it there
You can clearly see in this article that the proposed bill's prospects in the Senate is unclear.
Some states may ban or delay CBDC but others will accept it for sure, if not all of them, after next major crash when dollar becomes worthless.
EU already started promoting this crap with Christine Lagarde (as optional first) so it's obvious they al have the same orders from their puppet masters.
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Usdt is a stable currency while BTC and ETH are not. People are using Usdt mostly whenever they have to keep their funds in a stable currency. Many centralized exchanges are bringing contests and raffles where they require old and new members to trade in USDT so then they will enter the contests and can win profit in coins or in a stable currency. These types of contests are also causing a huge trading volume. Usdt is like the fiat currency of the digital world of crypto. Therefore people prefer to use it. If we look at the top stablecoin list, USDT has a trading volume of $69,263,175,661, and the other 10 stable coins if combined collectively can't cross it in 24-hour trading volume. Usdt has been in the market for a long time and people have trust in it. Maybe PaypalUsd someday will be trusted more when Usdt will crash but till then we have to hope it will never crash.
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There has always been a lot of doubts about USDT and there have been investigations about it but since it became a friend of the US government I no longer trust USDT even though it is by far the largest stablecoin.
Stablecoins, especially centralized ones, should not be trusted because they are worse than the dollar, the coin can collapse and your money can be blocked and seized at the request of the government for any reason.
But despite that, we cannot abandon stablecoins because cryptocurrencies are very volatile and you need a somewhat stable coin to maintain the value of your money in trading during the bear market and also easier to convert to cash.
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There has always been a lot of doubts about USDT and there have been investigations about it but since it became a friend of the US government I no longer trust USDT even though it is by far the largest stablecoin.
Stablecoins, especially centralized ones, should not be trusted because they are worse than the dollar, the coin can collapse and your money can be blocked and seized at the request of the government for any reason.
But despite that, we cannot abandon stablecoins because cryptocurrencies are very volatile and you need a somewhat stable coin to maintain the value of your money in trading during the bear market and also easier to convert to cash.
USDT became a friend of the US government? I did not know that. If it really became then you should trust USDT more than before because now the government is backing it. But your concerns about volatility and collapse are considerable because every single crypto user knows about USDT but they can't name the other 10 stable pegged currencies in crypto because they all are taught so well to trust on USDT only.
I still use USDT for p2p and maintain the value of my money in bear market, because I have no other choice people don't provide p2p trades easily in other pegged currencies. If we have small funds then we can use USDT for holding but if we have huge funds then we should not keep all of our money in single pegged stable currency. We should diversify it.
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There is the contribution of USDT and other stablecoins to the market but your worry is valid. Because on 2017's bull run, USDT has played a significant role for Bitcoin's pump and that's because Tether had been printed a lot of it. And IIRC, the same on 2021. But is there really to worry about it? What's more worrying about it is it being a centralized cryptocurrency where the developers of it is able to freeze someone's fund. I know they do target criminals only with that but it doesn't mean that they can only do that to them selectively.
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There has always been a lot of doubts about USDT and there have been investigations about it but since it became a friend of the US government I no longer trust USDT even though it is by far the largest stablecoin.
Stablecoins, especially centralized ones, should not be trusted because they are worse than the dollar, the coin can collapse and your money can be blocked and seized at the request of the government for any reason.
But despite that, we cannot abandon stablecoins because cryptocurrencies are very volatile and you need a somewhat stable coin to maintain the value of your money in trading during the bear market and also easier to convert to cash.
USDT became a friend of the US government? I did not know that. If it really became then you should trust USDT more than before because now the government is backing it. But your concerns about volatility and collapse are considerable because every single crypto user knows about USDT but they can't name the other 10 stable pegged currencies in crypto because they all are taught so well to trust on USDT only.
I still use USDT for p2p and maintain the value of my money in bear market, because I have no other choice people don't provide p2p trades easily in other pegged currencies. If we have small funds then we can use USDT for holding but if we have huge funds then we should not keep all of our money in single pegged stable currency. We should diversify it.
Yes, USDT has become friendly to the US government, when a company is subject to strict terms and regulations, KYC regulations, money laundering regulations, etc., it will inevitably become friendly to the government and will become a tool in the hands of the government and it may freeze any balance or prevent any transaction upon the request of the government.
However, I am not saying that you should not deal with USDT at all, but my advice is to use it in trading, bank transfers, cash, etc. and do not keep a large amount of your assets in USDT because it is not reliable in the long run.
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Yes, USDT has become friendly to the US government, when a company is subject to strict terms and regulations, KYC regulations, money laundering regulations, etc., it will inevitably become friendly to the government and will become a tool in the hands of the government and it may freeze any balance or prevent any transaction upon the request of the government.
Oh you were talking in that sense I thought USDT had some kind of deal of peace with the US government. In this sense, every single crypto platform is not friendly with the US government because the legal entities are not making sure that if any platform doesn't comply with their rules and regulations they pay for it too.
However, I am not saying that you should not deal with USDT at all, but my advice is to use it in trading, bank transfers, cash, etc. and do not keep a large amount of your assets in USDT because it is not reliable in the long run.
Even If we want to we must not leave USDT at all, and if I am not wrong no one really in this world due to lack of pairs in other stable currencies, avoids trading any crypto pair with USDT. This way every trader used USDT even if they didn't want to. It has become an important pillar of the crypto field.
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There has always been a lot of doubts about USDT and there have been investigations about it but since it became a friend of the US government I no longer trust USDT even though it is by far the largest stablecoin.
Stablecoins, especially centralized ones, should not be trusted because they are worse than the dollar, the coin can collapse and your money can be blocked and seized at the request of the government for any reason.
But despite that, we cannot abandon stablecoins because cryptocurrencies are very volatile and you need a somewhat stable coin to maintain the value of your money in trading during the bear market and also easier to convert to cash.
The highest risk of usdt isn't privacy or freezing coins ( I am not a criminal so I am not particularly worried about it)
My worries about usdt were always related to their capacity to maintain 1:1 usdt and usd. And better regulation and relationship with us government is good imo
For privacy, I always prefer bitcoin
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What do you think? Are we becoming too dependent on stablecoins? What could be the long-term impacts on the market?
I hope you know that it's not every person in crypto that used or trade Bitcoin but almost all the coins in crypto are been traded against USDT because of the stability they get from trading it as a pair with other coins. If Bitcoin is traded with other altcoins as pair, I'm not sure USDT will come close to what Bitcoin is doing on a monthly basis but imagine the volume it's attracting every time.
Don't forget that USDT has a lot of OTC tables, many over the counter transaction where people do bulk transaction, there OTC for Bitcoin too but there are more with stable coins than we do have for Bitcoin. People love to transact USDT because of the market volatility I think.
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The highest risk of usdt isn't privacy or freezing coins ( I am not a criminal so I am not particularly worried about it)
They can freeze coins to anyone, not just to criminals and hackers.
Just a possibility of doing that by a single guy with a push of a button is a scary idea.
Let's not be surprised if much worse things could happen with CBDC crap if we don't reject it.
My worries about usdt were always related to their capacity to maintain 1:1 usdt and usd. And better regulation and relationship with us government is good imo
That applies for all stablecoins.
It is only a matter of time when peg will not exist anymore, and there are many reasons for that.
This is the reason I dont suggest long term holding of any stablecoins.
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This heavy reliance on USDT is like putting all our eggs in one basket. If something goes wrong with USDT, it would be a disaster! Plus, this obsession with stablecoins might overshadow our dear BTC and ETH, pushing them aside.
As of now, we can say that there is no real competition for USDT when it comes to the stablecoin market...and in fact am really wondering why this is so, seems to me that many people including traders and investors are just fascinated with Tether. And yes it can be a big problem when there seems to be a monopoly in the market as we can never foresee what can be in the future since this is a centralized platform just like your traditional bank. Things would have been better if there can be a real number two player in the market that can be comparable to USDT in terms of business volume but for now this is not so. Though am not concerned that USDT is overshadowing BTC or any other coin for that matter since we know that USDT is not actually a cryptocurrency in the real sense of the word and use.
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As of now, we can say that there is no real competition for USDT when it comes to the stablecoin market...and in fact am really wondering why this is so, seems to me that many people including traders and investors are just fascinated with Tether.
I don't think this is true.
We have literally half dozen alternatives to usdt with billions of marketcap
You can buy USDC, DAI, FDUSD...
I tether is the largest but not the only one.
You can even use DAI which is decentralized and completely different
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We have literally half dozen alternatives to usdt with billions of marketcap
You can buy USDC, DAI, FDUSD...
USDC has actually lost marketcap since the bear season in 2022, they have gained a bit but they are still down from there, tether is up.
As for FDUSD, it's just Binance and that's it, plus I wouldn't bet that much on their future, an economic ar is on the horizon and no way will the new administration that loves the USD so much let a company in HK play with it nor will the Chinese administration like a company buying us bonds!
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I don't think this is true.
We have literally half dozen alternatives to usdt with billions of marketcap
You can buy USDC, DAI, FDUSD...
I tether is the largest but not the only one.
You can even use DAI which is decentralized and completely different
Have you actualy checked the volume for all this stable coins?
Most of them have much lower trading volume and marketcap stuff doens't really mean much, except showing unrealistic numbers.
As for DAI is backed by USDC and other centralized assets, and it's not that decentralized like you think:
https://thedefiant.io/news/defi/dai-remains-mostly-backed-by-centralized-assets
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I don't think this is true.
We have literally half dozen alternatives to usdt with billions of marketcap
You can buy USDC, DAI, FDUSD...
I tether is the largest but not the only one.
You can even use DAI which is decentralized and completely different
Have you actualy checked the volume for all this stable coins?
Most of them have much lower trading volume and marketcap stuff doens't really mean much, except showing unrealistic numbers.
As for DAI is backed by USDC and other centralized assets, and it's not that decentralized like you think:
https://thedefiant.io/news/defi/dai-remains-mostly-backed-by-centralized-assets
Looking at https://www.coingecko.com/en/categories/stablecoins (https://www.coingecko.com/en/categories/stablecoins), IMO it's not that low (thanks to USDC and FDUSD). Although i agree market cap doesn't mean much when they could just issue more of their stable coin, sometimes without real backing.
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Looking at https://www.coingecko.com/en/categories/stablecoins (https://www.coingecko.com/en/categories/stablecoins), IMO it's not that low (thanks to USDC and FDUSD). Although i agree market cap doesn't mean much when they could just issue more of their stable coin, sometimes without real backing.
As far as I know, there isn`t any proof that any stable coin that ever issued new coins without real backing.
There were rumors that tether did so in the past, but they already showed their reserves since some years ago
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Looking at https://www.coingecko.com/en/categories/stablecoins (https://www.coingecko.com/en/categories/stablecoins), IMO it's not that low (thanks to USDC and FDUSD). Although i agree market cap doesn't mean much when they could just issue more of their stable coin, sometimes without real backing.
Tether is being printed all the time in big amounts, other stablecoins are doing the same thing but probably in smaller amounts.
USDC have decent volume only because it is allowed in the US and I guess it is mostly used there.
Rest of the world is mostly using USDT, even more than Bitcoin I think (sadly).
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USDC have decent volume only because it is allowed in the US and I guess it is mostly used there.
Rest of the world is mostly using USDT, even more than Bitcoin I think (sadly).
USDC is issued by Circle, which is headquartered in the United States, this is why it is commonly used there. Circle looks to be a very reliable and regulated company, more than Tether imo.
You can find more information about them here
https://br.usdc.com/
I think Coinbase has some relationship with it either.
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Stable coins are used for trading purposes so it's not a surprise to see the daily volume exceed Bitcoin or any specific crypto because it's used in multiple crypto pairs. As you said if something happens there will be a bloodbath all over the market for quite a while but it's not going to end BTC or any crypto it will end the stable coins era.
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What do you think? Are we becoming too dependent on stablecoins? What could be the long-term impacts on the market?
As USDT has 1:1 ratio value every trader considers it as their asset. Due to which it is very popular but like USDT USDC also makes a popular stable. Everyone believes that these stable factors will not crash. But they cannot be trusted with guarantees as UST was once a very popular stablecoin backed by LUNA but crashed which destroyed many investors' savings. But USDT is still trusted by everyone hence its development. But since crypto is risky, everything that happens with it in the future has to be accepted
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As USDT has 1:1 ratio value every trader considers it as their asset. Due to which it is very popular but like USDT USDC also makes a popular stable. Everyone believes that these stable factors will not crash. But they cannot be trusted with guarantees as UST was once a very popular stablecoin backed by LUNA but crashed which destroyed many investors' savings. But USDT is still trusted by everyone hence its development. But since crypto is risky, everything that happens with it in the future has to be accepted
Luna was a very specific situation , which i don't think will repeat again.
Algorithm Stable coins fail. We won't see another luna imo.
Usdt and usdc are much simpler. They just have 1:1 reserves and people trust the companies behind them