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That's just for interactions with the company behind Tether itself. That isn't how most people exchange their USDT. The most common way to get rid of USDT is to
by lacker 7y ago
That's just for interactions with the company behind Tether itself. That isn't how most people exchange their USDT. The most common way to get rid of USDT is to exchange it on Binance, where the market for Tether is very liquid, and the going rate as I write this is right around one dollar. Plenty of other exchanges besides Binance too. See:
https://coinmarketcap.com/currencies/tether/ https://coinmarketcap.com/currencies/tether/
- JumpCrisscross 7y ago> The most common way to get rid of USDT is to exchange it on Binance Exchange it for what? If you exchange it for a record entry for anything (whether dollars or Bitcoin) in a Binance (or affiliate's) account, you're exchanging one IOU for another. Given most USDT trades on Binance and its affiliated entities, this loops right back to the withdrawal problem. A "stable" coin that cannot be readily redeemed and is not fully reserved is a Ponzi scheme with extra steps.
- ChainOfFools 7y ago> A "stable" coin that cannot be readily redeemed and is not fully reserved is a Ponzi scheme with extra steps. Extra steps, and the delay they introduce, may be all a ponzi needs to sustain itself sufficiently to permit quiet exits. That the market will eventually be consistent is, alas, not the current manipulators' problem.
- lacker 7y agoUSDT is most commonly exchanged for Bitcoin. You can withdraw the Bitcoin from Binance to your own wallet, so you aren't really "exchanging one IOU for another". There are plenty of valid criticisms of USDT. Saying that it is hard to exchange 1 USDT for a dollar's worth of Bitcoin that you control is not one of them.
- JumpCrisscross 7y ago> You can withdraw the Bitcoin from Binance to your own wallet, so you aren't really "exchanging one IOU for another" Until it's in your wallet, it's an IOU. And Binance has had issues with Bitcoin withdrawals, too. (Not to mention, they seem to lose their cash and coins to hackers [1] and fraudsters once a quarter.) There is no independent, trusted marketplace where USDT trades in material volumes. And we now know that Tether previously lied about its dollar reserves. Continuing to trust them is delusional at best. [1] https://www.bloomberg.com/news/articles/2019-05-08/crypto-exchange-giant-binance-reports-a-hack-of-7-000-bitcoin https://www.bloomberg.com/news/articles/2019-05-08/crypto-ex...
- TylerE 7y agoThat's not what anyone says. The hard part is exchanging USDT (or bitcoin) for actual money since banks don't want to touch crypto with a 10-mile pole.
- 2arrs2ells 7y agoExchanging bitcoin for actual money isn't hard if you're willing to clear KYC/AML (ex at Coinbase).
- xorcist 7y agoExchange it for Bitcoin. What else would you do with it? People here seem to misunderstand what USDT is used for. It's not to invest in. It's used to trade against BTC at exchanges which do not have access to USD markets. The gambl^Wtraders there probably couldn't care less about how collaterized it is. The threat model is and has always been that Binance or Poloniex or whatever they're called disappears with your money, tethered or otherwise.
- flyGuyOnTheSly 7y agoYou can exchange USDT for USD fiat on Kraken.com and send those USD fiat to your real life bank account.
- NovemberWhiskey 7y agoNot very much USDT, you can't. If you had 5M USDT, how much USD do you think you'd get if you tried to liquidate that position on that exchange right now?
- flyGuyOnTheSly 7y agoIt's not the most liquid market, but don't be fooled by thin books. If you push the price down with $5M, it will jump right back up.