6 ms·

If you want to buy cryptocurrency, why not just buy Bitcoin? In contrast, I don't see a worthy reason to sell US dollars for any stablecoin.

homero 7y ago
It helps with transferring cash between exchanges
- carbocation 7y ago
  Any quantity of Bitcoin can be transferred between exchanges for pennies these days.
  - xur17 7y ago
    That's not useful if you are trying to arbitrage Bitcoin between 2 exchanges.
  - homero 7y ago
    Not when you're trying to hedge with cash
  - baby 7y ago
    And in the mean time the value has droped tenfolds.
baby 7y ago
Look at the marketcap of tether. There's obviously a use case.
Semaphor 7y ago
I always thought Tether is mainly used for parking money when trading.
- theturtletalks 7y ago
  My buddy was telling me he transferred bitcoin from one exchange to another. When he sold his bitcoin, he got taxed at the full value of what he sold the coin for not just his gains. Couldn’t he have just parked his funds and basically used that as a bank account?
  - reissbaker 7y ago
    Who did the tax collection? Did the exchange collect it automatically, or did your buddy do the filing? If the former, the exchange is sketchy; if the latter, your friend messed up. https://www.nerdwallet.com/blog/investing/bitcoin-taxes/ https://www.nerdwallet.com/blog/investing/bitcoin-taxes/
    - theturtletalks 7y ago
      He did the filing with the tax form that company sent. I think the exchange he transferred from was sketchy or not confirmed. In that case, when you sell, they show the full price.
      - astura 7y ago
        I mean even if the exchange messed up and took out more tax than they should have, he would just fix that at tax filing time and get a refund. If the exchange was overseas/super sketchy it's possible that the exchange just plain stole some of his money and claimed it was "for taxes."
    - repomies68 7y ago
      The exchanges don't collect taxes. Tax office probably requested information from the exchange and the exchange complied, and the tax office calculated the total amount withdrawn as taxable. The idea that an exchange would be calculating taxes is ridiculous.
      - astura 7y ago
JauntyHatAngle 7y ago
People use it to transfer between crypto and FIAT (representation). You can park it outside the crypto market, ready to buy back into crypto at any moment.

homero 7y ago

It helps with transferring cash between exchanges

carbocation 7y ago
Any quantity of Bitcoin can be transferred between exchanges for pennies these days.
- xur17 7y ago
  That's not useful if you are trying to arbitrage Bitcoin between 2 exchanges.
- homero 7y ago
  Not when you're trying to hedge with cash
- baby 7y ago
  And in the mean time the value has droped tenfolds.

baby 7y ago

Look at the marketcap of tether. There's obviously a use case.

Semaphor 7y ago

I always thought Tether is mainly used for parking money when trading.

theturtletalks 7y ago
My buddy was telling me he transferred bitcoin from one exchange to another. When he sold his bitcoin, he got taxed at the full value of what he sold the coin for not just his gains. Couldn’t he have just parked his funds and basically used that as a bank account?
- reissbaker 7y ago
  Who did the tax collection? Did the exchange collect it automatically, or did your buddy do the filing? If the former, the exchange is sketchy; if the latter, your friend messed up. https://www.nerdwallet.com/blog/investing/bitcoin-taxes/ https://www.nerdwallet.com/blog/investing/bitcoin-taxes/
  - theturtletalks 7y ago
    He did the filing with the tax form that company sent. I think the exchange he transferred from was sketchy or not confirmed. In that case, when you sell, they show the full price.
    - astura 7y ago
      I mean even if the exchange messed up and took out more tax than they should have, he would just fix that at tax filing time and get a refund. If the exchange was overseas/super sketchy it's possible that the exchange just plain stole some of his money and claimed it was "for taxes."
  - repomies68 7y ago
    The exchanges don't collect taxes. Tax office probably requested information from the exchange and the exchange complied, and the tax office calculated the total amount withdrawn as taxable. The idea that an exchange would be calculating taxes is ridiculous.
    - astura 7y ago

JauntyHatAngle 7y ago

People use it to transfer between crypto and FIAT (representation). You can park it outside the crypto market, ready to buy back into crypto at any moment.