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> - Is USDT actually backed 1:1 by USD / cash equivalents as Tether claims? w/o independent audits we have no idea. I'm going to say no. Because Tether refuses

> - Is USDT actually backed 1:1 by USD / cash equivalents as Tether claims? w/o independent audits we have no idea. I'm going to say no. Because Tether refuses audit, refuses to name banks, and would be, based on their printing rates, depositing $3.5B USD a week into their bank (a rate which would put them on par with AT&T, Samsung, or Alphabet). I'm not sure how a few people working out of Hong Kong, etc., do that while sliding under the radar and avoiding scrutiny (from their bank or authorities).

safog 6y ago
Yes I agree, but still trying to figure out what impact that has on the broader eco system if USDT ends up being worthless starting now. How exactly will it impact the BTC price?
- graeme 6y ago
  70% of btc volume is tether. Apparently the dollar exit points in regulated markets are rather narrow. So it could be rather catastrophic if either the market loses confidence in Tether or subsequent Us enforcement action shuts them down or makes Tether untouchable to various exchanges.
  - safog 6y ago
    That's interesting, I didn't know that, thx! Will look it up a bit more.
luka-birsa 6y ago
It's well known that USDT is not 1:1 backed and this is true since the AG started their investigation. Market doesn't care. Right now USDT trading is popular since people are used to it. There are so many stable coin alternatives (backed with various collateral, some like USDC backed by USD 1:1), so you can always remove the risk. Good luck to those shorting crypto due to "Tether scam". If you're a newcomer, this kind of news makes rounds every X months and market sometimes reacts widely, just to return back and inexperienced crypto investors/users get spooked. I'm not saying that Tether is all good and for sure they run a hazy operation there, but there is a wider crypto adoption taking place now. Companies are diversifying their treasuries, starting to load on BTC as a hedge against inflation. PS: Expect news of China banning bitcoin, India banning bitcoin, Russia takedown on crypto, Yelen commenting that BTC is a scam. All of this will be amplified to move price down and shakeout small time holders while large investors keep buying more and more.

safog 6y ago

Yes I agree, but still trying to figure out what impact that has on the broader eco system if USDT ends up being worthless starting now. How exactly will it impact the BTC price?

graeme 6y ago
70% of btc volume is tether. Apparently the dollar exit points in regulated markets are rather narrow. So it could be rather catastrophic if either the market loses confidence in Tether or subsequent Us enforcement action shuts them down or makes Tether untouchable to various exchanges.
- safog 6y ago
  That's interesting, I didn't know that, thx! Will look it up a bit more.

luka-birsa 6y ago

It's well known that USDT is not 1:1 backed and this is true since the AG started their investigation. Market doesn't care. Right now USDT trading is popular since people are used to it. There are so many stable coin alternatives (backed with various collateral, some like USDC backed by USD 1:1), so you can always remove the risk. Good luck to those shorting crypto due to "Tether scam". If you're a newcomer, this kind of news makes rounds every X months and market sometimes reacts widely, just to return back and inexperienced crypto investors/users get spooked. I'm not saying that Tether is all good and for sure they run a hazy operation there, but there is a wider crypto adoption taking place now. Companies are diversifying their treasuries, starting to load on BTC as a hedge against inflation. PS: Expect news of China banning bitcoin, India banning bitcoin, Russia takedown on crypto, Yelen commenting that BTC is a scam. All of this will be amplified to move price down and shakeout small time holders while large investors keep buying more and more.