So it turns out Tether only holds 3% cash, the rest IOUs etc.

[Overnight]

The hell is a Tether? This is why I sink my head low into equity indices. You crazy people and this Crypto (and crypto derivative stuff Oy!) Are there options on crypto yet? Let's get even more nuts!

 

[Trader Curt]

The hell is a Tether? This is why I sink my head low into equity indices. You crazy people and this Crypto (and crypto derivative stuff Oy!) Are there options on crypto yet? Let's get even more nuts!

It's a crypto with no volatility. USDT. You can trade your Bitcoin for it and then trade it for USD. It's what people who missed the bandwagon bitch about on their spare time while others are profiting

 

[Overnight]

It's a crypto with no volatility. USDT. You can trade your Bitcoin for it and then trade it for USD. It's what people who missed the bandwagon bitch about on their spare time while others are profiting

So I spend USD on BTC. Then I trade the BTC to Tether. Then I trade the Tether to USD? The fack is that? Does Tether somehow enhance the USD value when it goes from BTC -> Tether?

I want a pack of Wrigley's gum. How many tethers do I need in my electric wallet to buy a pack of Wrigley's gum?

It is coming, dudes, and only one side is going to win.

*hint* It is not going to be the electronic side.

 

[guest_trader_1]

View attachment 258984

Tether vs USD, 1 Year

As I said, as long as you can see your charts everything is fine, ignore a 1v1 with only a 3% backed by USD but still shown as 1v1. Ignore that, the chart looks very nice.

 

[Trader Curt]

So I spend USD on BTC. Then I trade the BTC to Tether. Then I trade the Tether to USD? The fack is that? Does Tether somehow enhance the USD value when it goes from BTC -> Tether?

I want a pack of Wrigley's gum. How many tethers do I need in my electric wallet to buy a pack of Wrigley's gum?

It is coming, dudes, and only one side is going to win.

*hint* It is not going to be the electronic side.

What you are failing to realize is that sending Tether is faster than sending USD to an exchange from a bank. It takes at least 5 days to see your money from an ACH from a bank, Tether only takes seconds. You can also send Tether to other crypto exchanges in seconds for less than 3 cents, and then trade with it.

And FYI the electronic side has already won. We are now waiting for USD to be digital

 

[Overnight]

...

And FYI the electronic side has already won. We are now waiting for USD to be digital

It will not take much to take out the electrics.

 

[DiceAreCast]

And why commercial paper and not holding fiat in safekeeping? That smells all very fishy.

Details are in https://www.coindesk.com/tether-first-reserve-composition-report-usdt
View attachment 258981

Money in commercial paper and fiduciary deposits (bank deposits) are generally fairly low risk.
https://www.moneyrates.com/investment/commercial-paper.htm


My concern is Tether appears unregulated, so they could be saying/doing just about anything.

 

[DiceAreCast]

Thought this is all decentralized,

The tether company acts as the role of fed. It can create as much tether as it like, and use that to buy btc.

 

[DiceAreCast]

We? Have you received any tether free of charge that was printed out of thin air? I see your dislike for centralized banking but let's stay reasonable and factual. There are a few who benefit greatly and who those individuals are is all obscured through multiple layers of opaqueness

I see no harm in Tether printing anything out of thin air. If our government can do it, then so should we. The only difference is I don't bitch about it

 

[Nobert]

So if I buy 1 BTC at $50K, what does a "tether" do to it? Is a tether some sort of transaction thing to make BTC work?

It wouldn't be at 50k in the first place, if not for this tether, that is unlimited and worthless.
(Artificial demand)
Then they use btc to back it up.
And then the same tether to buy btc.
What could go wrong.

Meanwhile random Joes, thinks about it as a store of value.
That's the truly wrong/unfair/shady/corrupted part.