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Look at the daily volumes, instead. Doge isn’t used as the primary on/off ramp for the entire crypto market, but Tether is. Tether has basically become the cry

by cwhiz 6y ago

Look at the daily volumes, instead. Doge isn’t used as the primary on/off ramp for the entire crypto market, but Tether is. Tether has basically become the crypto fed. Without tether, this whole thing falls apart.

xorcist 6y ago
How can something like tether be a primary on-ramp? No one has their salary in tethers. It must be bought somewhere.
- xwolfi 6y ago
  It s because banks were horribly slow to work with exchanges. In my country, China, many exchanges closed down due to account freezes by their banks (granted they might never have followed proper regulations in the first place). So, when your bank freezes you out a few times, you build an exchange entirely on Tether and tell people it s like money. And then all exchanges do it and when you look back at it, Tether is the only way to redeem BTC, which you wanted an exposure on because your grandma is a paper millionaire. So each time there s a bubble you rush to an exchange, give your RMB for BTC, the bubble burst you rush out and what s the only way? Calling Bank of China to beg them to reinstate yout exchange? Or take the USDT and go elsewhere? It s better these days but a few years ago everyone I knew was locked in BTC or Tether. And the more they re locked in, the more delusional these people are abt their crypto things, pushing the bull up... I tell you in 10 years everyone will see it like the scam it is, but boy is it hard to yell at the wind meanwhile :D DONT BUY VIRTUAL MONEY IT S VIRTUAL BUT NOT MONEY
  - gruez 6y ago
    >And then all exchanges do it and when you look back at it, Tether is the only way to redeem BTC [...] the bubble burst you rush out and what s the only way? Calling Bank of China to beg them to reinstate yout exchange? Or take the USDT and go elsewhere? Surely a bitcoin millionaire can afford an offshore bank account to withdraw USDT to?
- cwhiz 6y ago
  It’s the in-market ramp because exchanges can’t afford to cash you out with the dollars you put in. And this is where it becomes a scam. People need/want the ability to cash out to sit on the sidelines during periods of extreme volatility, market declines, etc. Crypto exchanges can’t literally cash you out, because they don’t have the dollars. So here’s a brilliant idea. I’ll just print a Tether and give it to you. It’s pegged to the dollar, and so you don’t care. But wait, aren’t there obvious flaws with this plan? Isn’t this just punting the actual problem down the road? Who controls how many tethers are printed? What if everyone wants to convert their tethers to dollars? Are the tethers actually backed by dollars? And, most importantly, can’t the price of crypto be artificially manipulated upward by the printing of additional tethers? If you want the answer to these questions, get in line with the rest of us.
  - gruez 6y ago
    >Crypto exchanges can’t literally cash you out, because they don’t have the dollars. Why not? For every seller there must be a buyer, so the money has to be around somewhere.
    - cwhiz 6y ago
      Money laundering, scams, insolvency, lack of regulations, lack of clearinghouses, etc. Lots of reasons. Tether wouldn't exist if Bitfinex was able to cash out dollars on demand.
      - gruez 6y ago
        > Tether wouldn't exist if Bitfinex was able to cash out dollars on demand. Is there evidence of this, ie. mass reports of bitfinex clients not being able to withdraw?
        cwhiz 6y ago
        https://www.forbes.com/sites/stevenehrlich/2019/05/02/after-an-850-million-controversy-what-everyone-should-know-about-bitfinex-tether-and-stablecoins/?sh=46384aa8492f https://www.forbes.com/sites/stevenehrlich/2019/05/02/after-... Bitfinex, and Tether, are under scrutiny from multiple state attorneys general.

by cwhiz 6y ago

xorcist 6y ago

How can something like tether be a primary on-ramp? No one has their salary in tethers. It must be bought somewhere.

xwolfi 6y ago
It s because banks were horribly slow to work with exchanges. In my country, China, many exchanges closed down due to account freezes by their banks (granted they might never have followed proper regulations in the first place). So, when your bank freezes you out a few times, you build an exchange entirely on Tether and tell people it s like money. And then all exchanges do it and when you look back at it, Tether is the only way to redeem BTC, which you wanted an exposure on because your grandma is a paper millionaire. So each time there s a bubble you rush to an exchange, give your RMB for BTC, the bubble burst you rush out and what s the only way? Calling Bank of China to beg them to reinstate yout exchange? Or take the USDT and go elsewhere? It s better these days but a few years ago everyone I knew was locked in BTC or Tether. And the more they re locked in, the more delusional these people are abt their crypto things, pushing the bull up... I tell you in 10 years everyone will see it like the scam it is, but boy is it hard to yell at the wind meanwhile :D DONT BUY VIRTUAL MONEY IT S VIRTUAL BUT NOT MONEY
- gruez 6y ago
  >And then all exchanges do it and when you look back at it, Tether is the only way to redeem BTC [...] the bubble burst you rush out and what s the only way? Calling Bank of China to beg them to reinstate yout exchange? Or take the USDT and go elsewhere? Surely a bitcoin millionaire can afford an offshore bank account to withdraw USDT to?
cwhiz 6y ago
It’s the in-market ramp because exchanges can’t afford to cash you out with the dollars you put in. And this is where it becomes a scam. People need/want the ability to cash out to sit on the sidelines during periods of extreme volatility, market declines, etc. Crypto exchanges can’t literally cash you out, because they don’t have the dollars. So here’s a brilliant idea. I’ll just print a Tether and give it to you. It’s pegged to the dollar, and so you don’t care. But wait, aren’t there obvious flaws with this plan? Isn’t this just punting the actual problem down the road? Who controls how many tethers are printed? What if everyone wants to convert their tethers to dollars? Are the tethers actually backed by dollars? And, most importantly, can’t the price of crypto be artificially manipulated upward by the printing of additional tethers? If you want the answer to these questions, get in line with the rest of us.
- gruez 6y ago
  >Crypto exchanges can’t literally cash you out, because they don’t have the dollars. Why not? For every seller there must be a buyer, so the money has to be around somewhere.
  - cwhiz 6y ago
    Money laundering, scams, insolvency, lack of regulations, lack of clearinghouses, etc. Lots of reasons. Tether wouldn't exist if Bitfinex was able to cash out dollars on demand.
    - gruez 6y ago
      > Tether wouldn't exist if Bitfinex was able to cash out dollars on demand. Is there evidence of this, ie. mass reports of bitfinex clients not being able to withdraw?
      - cwhiz 6y ago
        https://www.forbes.com/sites/stevenehrlich/2019/05/02/after-an-850-million-controversy-what-everyone-should-know-about-bitfinex-tether-and-stablecoins/?sh=46384aa8492f https://www.forbes.com/sites/stevenehrlich/2019/05/02/after-... Bitfinex, and Tether, are under scrutiny from multiple state attorneys general.