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The only sensible comment here. HN has been predicting Tether's collapse for nearly 5 years now and it's simply not happening, people purchasing tether have bee
by Grimburger 4y ago
The only sensible comment here. HN has been predicting Tether's collapse for nearly 5 years now and it's simply not happening, people purchasing tether have been taking a short against bitcoin, historically that a very bad bet and certainly one you want to be on the other side of.
Now they've been through very significant bear markets, some theft of funds and still are solvent.
I don't understand the criticism about high amounts and verification for directly redeeming it either. If they did neither of those things it would be a money-laundering haven and they'd have men with guns raiding their homes tomorrow. You can redeem it through kraken and other domestic exchanges for cold hard cash, it's working perfectly fine.
Tether will be looked back as an example of how dramatically wrong "common knowledge" can be in internet communities, some people are so mentally obstinate and committed to the idea that it is simply too hard to admit they might be wrong, this is fed by others in the community with the same affliction.
- unyttigfjelltol 4y agoThe article makes clear that Tether is actually more like a Special Drawing Right (SDR) on overcollateralized derivatives of the crypto ecosystem. Which is to say that Tether is more like a derivative of rainbows and unicorns-- actually it's basically the IMF of rainbows and unicorns. Is Tether the equivalent of USD? No. It is not USD. Why is Tether valued at 1 USD per coin? I'm not sure. But it almost certainly will not be if the value of crypto broadly falls enough to compromise Tether's collateral. The value of that "paper" is a nonlinear function. The "collapse" would happen so very slowly... and then all at once. Good luck.
- schemescape 4y ago> Now they've been through very significant bear markets, some theft of funds and still are solvent. How did you determine they are solvent? Note that even a literal Ponzi scheme could honor withdrawals for a time, so producing $1 for 1 USDT (or even several billion) is not proof. The only reports I'm aware of are either paid for by Tether (e.g. the latest report from BDO--whom I know nothing about) or from governments (e.g. the NYAG and CFTC reports--which I trust--and show that Tether was, in fact, not telling the truth about reserves).
- Grimburger 4y ago> How did you determine they are solvent? That they keep paying out billions each year in dollars to those who request it?
- Kbelicius 4y agoSolvent usually means being able to pay ALL of your obligation in the LONG term so your claim that they are solvent because they manage to cover SOME obligations in the SHORT term doesn't mean anything. Where can I find the info on billions that they exchange yearly?
- evdubs 4y agohttps://coinmarketcap.com/currencies/tether/ https://coinmarketcap.com/currencies/tether/ / Market Cap / 1Y Shows a decline in market cap from $83B in May 2022 to $66B in July 2022. That represents $17B in redemptions over a few months. That represents Tether net paying USD to USDt holders.
- deleted 4y ago[deleted]