Usdt vs Btc, Eth, Sol transaction volume

[ZAINmalik75]

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.

[bitmover]

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

[Gurujebs]

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.

[dkbit98]

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.

[TomPluz]

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.

[bitmover]

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

[Stompix]

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!

[dkbit98]

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

[ABCbits]

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, 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.

[bitmover]

Looking at 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

[dkbit98]

Looking at 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).

[bitmover]

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.

[Findingnemo]

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.

[JISAN]

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

[bitmover]

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