RE: RED ALERT - Mt. Gox 2.0 Brewing - Bitfinex May Be Issuing Unbacked Tether To Paper Over Banking Service Loss - What We Think We Know (Part 1)

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RED ALERT - Mt. Gox 2.0 Brewing - Bitfinex May Be Issuing Unbacked Tether To Paper Over Banking Service Loss - What We Think We Know (Part 1)

in bitcoin •  7 years ago  (edited)

I can see both sides to this argument.

I see USDT as a quick and easy way to get out of a crypto, and store the value in (effectively) dollars, backed by the company behind the currency, Tether.

Say you sell 1BTC @ $10k and have it in USDT.
The bitcoin price crashes to $5k, and you decide you want to cash out real dollars.
Surely you can then buy BTC again (this time owning 2BTC) which you could then transfer to Coinbase (or the alike) for selling?

The only problem I see with this is the company, Tether. I may be missing the point, but having them create more USDT i don't necessarily see as a problem? As long as they have it backed up in real $ what's the problem? I haven't seen any solid evidence of them not being able to honour that.

Care to clarify your point on how market caps can be faked?

Monero is also my preferred coin of choice in the long run.

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Great article, but very outdated - using a BTC price of $1,500 ??

Oh wait, that was 5 months ago :-/