Usdt vs Btc, Eth, Sol transaction volume

[TokenTactician24]

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?

[Crwth]

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.

[Yamane_Keto]

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.

[bitmover]

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)

[hugeblack]

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

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.

[bitmover]

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.

[Lucius]

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?

[examplens]

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.

[bitmover]

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.

[dkbit98]

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 
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.

[ABCbits]

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.

[Lucius]

@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...?

[bitmover]

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/

[Stompix]

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! 

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.

[Lucius]

@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.