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> Not true, It is another ATH day for BTC, so literally anyone that bought BTC in the past and held is in the money. "Many often lose everything" is absurd. If

> Not true, It is another ATH day for BTC, so literally anyone that bought BTC in the past and held is in the money. "Many often lose everything" is absurd. If we all only buy and never sell or spend or use it, the price can only go up! > I'd rather not hold tether in general, but IMHO it is less at risk than funds in bank accounts. That's not even remotely true. Funds in bank accounts are FDIC insured. Tether depends on the liquidity of exchanges to buy your Tethers, which would collapse across the board if problems with Tether were announced. > I know this might sound strange to you dear reader, but you may not have experienced a time where bank accounts got haircuts The linked article literally talks about the haircut that Bitfinex users had to take when they lost money. > Be your own bank! The reality is that people do not want to be their own bank, nor do they want to pay tens of dollars in transaction fees every time they want to make a deposit or withdrawal. They especially don't want to lose all of their money if they forget their password. That's why most retail investors just leave it in an exchange, which acts as their bank. Sure, they could technically withdraw to a Bitcoin mind wallet and walk around with the password in their head, but that's not a great solution for 99% of people out there. Banks are fine.

rfd4sgmk8u 6y ago
I prefer to think of it as "depreciating fiat currency worth less every year", but sure. FDIC insurance is 250k per account, in the US. Only 323M/7.6B can take advantage of this. Don't forget the USDT liquidity in the defi markets, which is a growing area too: https://defimarketcap.io/protocol/uniswap-v2 https://defimarketcap.io/protocol/uniswap-v2 I think my point is that at this point even the solvency of tether corp is actually irrelevant to the value of their USDT. People believing in it seem to work well enough. Until people no longer believe in it, it will seem to exist. Bitfinex haircut is yet another reason why you don't store money in exchanges. Please stop assuming that people don't want to custody their own funds -- I have spent a great deal of time in the recent months and years convincing folks to install wallets and take custody their funds. Most find it easy and painless. There is a light bulb moment when people realize they are in control of their funds, and nobody can take this away from them. Exchanges are like internet banking, boring in 2021. Money over the internet, however, is really cool. Always stress the importance of backing up the seed phrase, and folk's wont lose access to funds. People like it! Its like a magical incantation to recovery coin anywhere in the universe. Negative interest rates are coming for your dollars. The bank is not your friend.
- ac29 6y ago
  > I prefer to think of it as "depreciating fiat currency worth less every year", but sure. How is a dollar worth of Tether less impacted by dollar inflation than a dollar in a bank account?
  - rfd4sgmk8u 6y ago
    That was more at point for fixed emission currencies like BTC vs fiat USD but running with your interpretation: * bank could start charging negative interest rates * tether could start providing interest yield to holders * banks could start freezing funds * tether could start freezing funds lots of things are possible. Will they happen? Unknown.

rfd4sgmk8u 6y ago

I prefer to think of it as "depreciating fiat currency worth less every year", but sure. FDIC insurance is 250k per account, in the US. Only 323M/7.6B can take advantage of this. Don't forget the USDT liquidity in the defi markets, which is a growing area too: https://defimarketcap.io/protocol/uniswap-v2 https://defimarketcap.io/protocol/uniswap-v2 I think my point is that at this point even the solvency of tether corp is actually irrelevant to the value of their USDT. People believing in it seem to work well enough. Until people no longer believe in it, it will seem to exist. Bitfinex haircut is yet another reason why you don't store money in exchanges. Please stop assuming that people don't want to custody their own funds -- I have spent a great deal of time in the recent months and years convincing folks to install wallets and take custody their funds. Most find it easy and painless. There is a light bulb moment when people realize they are in control of their funds, and nobody can take this away from them. Exchanges are like internet banking, boring in 2021. Money over the internet, however, is really cool. Always stress the importance of backing up the seed phrase, and folk's wont lose access to funds. People like it! Its like a magical incantation to recovery coin anywhere in the universe. Negative interest rates are coming for your dollars. The bank is not your friend.

ac29 6y ago
> I prefer to think of it as "depreciating fiat currency worth less every year", but sure. How is a dollar worth of Tether less impacted by dollar inflation than a dollar in a bank account?
- rfd4sgmk8u 6y ago
  That was more at point for fixed emission currencies like BTC vs fiat USD but running with your interpretation: * bank could start charging negative interest rates * tether could start providing interest yield to holders * banks could start freezing funds * tether could start freezing funds lots of things are possible. Will they happen? Unknown.