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> For anyone who disagrees with the above - please show me market where I can go sell my USDT directly for USD. Genuinely curious, as someone who has never use

by sjs382 6y ago

> For anyone who disagrees with the above - please show me market where I can go sell my USDT directly for USD. Genuinely curious, as someone who has never used Binance nor USDT: Why is the "directly" part here significant? If I can USDT (Binance) -> USD (Binance) -> BTC (Binance) -> BTC (Coinbase) -> USD (Coinbase) -> USD (My Bank), then whats the difference other than a few extra steps?

FabHK 6y ago
Apart from the fact that there are transaction costs and time delays (it'll take about half an hour after you bought BTC on Binance that you can sell them on Coinbase), what guarantees that the BTC price is the same on Coinbase and Binance? Well, arbitrage! But suppose BTC it is much higher on Binance. You'd then take USD and transfer them to Coinbase: USD (Coinbase) -> BTC (Coinbase) -> BTC (Binance) -> USDT (Binance) -> ?? Now you need to take these USDT and turn them into USD, to keep the arb running. But that is precisely what doesn't work. So: the chain you outline is NOT a way to "directly sell USDT for USD", as links can break down.
atomicnumber3 6y ago
It's basically the difference between a fiat currency and one backed by something. For example, something vaguely analogous would be: [Setting: The Olden Days] GP: "I'm concerned because nobody has ever tried to take USD to the government and directly get silver/gold for it." You: "Why is the "directly" part here significant? If I can USD (My Pocket) -> USD (My Brokerage) -> Gold (My Brokerage) -> Gold (My Pocket), then whats the difference other than a few extra steps?" The difference is that we never tested to see if the USD is actually backed by real gold.
qeternity 6y ago
You can't USD Binance. That's my point.
gruez 6y ago
There are easier paths, such as: USDT -> kraken[1] -> USD -> your bank or even USDT -> bitfinex[2] -> your bank [1] https://trade.kraken.com/charts/KRAKEN:USDT-USD https://trade.kraken.com/charts/KRAKEN:USDT-USD [2] yes they do allow fiat withdraws https://support.bitfinex.com/hc/en-us/articles/213919309-Fiat-Withdrawal-Processing https://support.bitfinex.com/hc/en-us/articles/213919309-Fia...
- singularity2001 6y ago
  nice in theory but practically if you try to withdraw from kraken you often get a plethora of errors, including "this function is currently disabled". this happened during the last run and this happened this week.

by sjs382 6y ago

FabHK 6y ago

Apart from the fact that there are transaction costs and time delays (it'll take about half an hour after you bought BTC on Binance that you can sell them on Coinbase), what guarantees that the BTC price is the same on Coinbase and Binance? Well, arbitrage! But suppose BTC it is much higher on Binance. You'd then take USD and transfer them to Coinbase: USD (Coinbase) -> BTC (Coinbase) -> BTC (Binance) -> USDT (Binance) -> ?? Now you need to take these USDT and turn them into USD, to keep the arb running. But that is precisely what doesn't work. So: the chain you outline is NOT a way to "directly sell USDT for USD", as links can break down.

atomicnumber3 6y ago

It's basically the difference between a fiat currency and one backed by something. For example, something vaguely analogous would be: [Setting: The Olden Days] GP: "I'm concerned because nobody has ever tried to take USD to the government and directly get silver/gold for it." You: "Why is the "directly" part here significant? If I can USD (My Pocket) -> USD (My Brokerage) -> Gold (My Brokerage) -> Gold (My Pocket), then whats the difference other than a few extra steps?" The difference is that we never tested to see if the USD is actually backed by real gold.

qeternity 6y ago

You can't USD Binance. That's my point.

gruez 6y ago

There are easier paths, such as: USDT -> kraken[1] -> USD -> your bank or even USDT -> bitfinex[2] -> your bank [1] https://trade.kraken.com/charts/KRAKEN:USDT-USD https://trade.kraken.com/charts/KRAKEN:USDT-USD [2] yes they do allow fiat withdraws https://support.bitfinex.com/hc/en-us/articles/213919309-Fiat-Withdrawal-Processing https://support.bitfinex.com/hc/en-us/articles/213919309-Fia...

singularity2001 6y ago
nice in theory but practically if you try to withdraw from kraken you often get a plethora of errors, including "this function is currently disabled". this happened during the last run and this happened this week.