For those interested, Coffeezilla did a piece on Tether:
And yes, it’s a scam.
Hodlers seem to tolerate it because crashing Tether would impact their net value. It’s sad.
if anything happens to Binance, Coinbase, or Tether, it’s most likely going lower
I feel like a lot of people who still dollar cost average into cryptocurrencies shouldn’t. If you make $300k/yr, you can do whatever you want with your money in my opinion.
If you make $15/hr working part time, you probably shouldn’t touch crypto. The risk is too low. What’s the upside chance?
that and r/bitcoin comment sections are very delusional cult to me
* I only trust BTC. There are some noteworthy projects like Ethereum who have earned benefit of doubt, but its better to stay away from rando shitcoins. Also stay away from centralized exchanges (Binance, FTX and the likes).
Or help keep them there as they keep getting "scammed" out of their money.
Think about $15/hr people who bought anything other than Bitcoin when Bitcoin was at $60k+
Crypto has most likely been harmful for a bunch of lower class people.
Actually let's think about them. What could they buy in Q4 2021 (when BTC was 60k+)? If they were in the US, then probably some random stocks or some index fund, which has gone down in value (-20% for S&P, to -65-70% for "blue chip" ones like TSLA or META). Definitely not real estate. And forget about commodities.
Outside the US? I'd wager similar scene in other advanced economies. I don't even know what good options they have in developing markets.
Even today, I'd wager that BTC* will have a better outcome than S&P over the next 10 years.
*to me, BTC is the only reputable crypto. ETH, if you understand how it works. Forget about everything else.
In the past, the bitcoin price sometimes increased when there were rumors that a centralized exchange was insolvent, as people liquidated their positions and bought bitcoin to get their assets out of the exchange.
I don't have any assets on exchanges, but if I did I'd want to get them out now. If I have to choose an offline store of value that will still be worth something in five years, should I use Tether or bitcoin?
Tether has remained relatively unaffected by major exchange collapses and disappearances over the years, including the very recent implosion of the world's second-biggest (after Binance) crypto exchange FTX. Barely a blip on their radar.
So I posit that Binance is probably the only exchange whose downfall may (may!) collapse Tether. And even then, Tether would be one among many, in that scenario.
Apart from that, the only entity whose collapse might also end Tether is perhaps "Tether itself". Unless anyone has other ideas? So it would seem to me that the government action is more likely to impact them than anything else at this stage.
People seem to say this every time one of these big crypto companies fails, yet it’s just plainly false. Tons of people put money into these companies and are left holding the bag when things inevitably collapse. At what point do we run out of rugs to pull and just agree the whole thing was a mistake?
thats why people keep saying it
it just isnt different enough to say that frequently occurring new problems that were introduced by the concept discredit the entire concept. ATMs never solved skimming, lets write an article about user or bank losses every day about that and pretend it doesn't work well most of the time for most people just because you dont see articles about that and never use it yourself, silly idea right? It still works fine. Analogies compare dissimilar things with at least one similarity, in this case its an introduced problem that isnt solved but didnt change the course of its existence. Same for debit/credit card payment processing over the internet, lots of fraud, whether the user experience of reversal occurs or not, the problem isnt solved and the course isnt changed.
They actually did with the emv chipped cards and mutual authentication, not that this was your overall point but still.
Wouldn't your name start as "Special Agent ----"?
The problem is that everyone in the system is so deeply reliant on USDT that they will do everything possible to prop it up.
Honestly, the only thing that can bring down Tether at this point is either the collapse of one of the major central players (such as Binance) or government action.