exactly what we see now. Funny how something that represents 75 percent of daily volume, being dismissed by true believers, sain that it has no effect on BTC price.
Tether - Unaudited For 6 Years/Rejects Auditor Because...
- Thread starter Nobert
- Start date
exactly what we see now. Funny how something that represents 75 percent of daily volume, being dismissed by true believers, sain that it has no effect on BTC price.
Yes, because Tethers are very high in demand
Look at my list, wouldn't you think Tether and other stablecoins would be worth more?
Absolutely! Tether and stablecoins are more valuable to exchanges, cryptos people who trade, merchants using it for cross border payments and transfers, and investors who use DeFi
No one is redeeming Tether and other stablecoins for worthtless fiat US $
And you guys on ET do not understand it, but I do not blame you because it takes hands on experience
Tethers are more desirable than US $... few understand this
According to https://tether.to/legal/
So if you want to redeem Tether, you might get some of their other reserve assets as listed in https://tether.to/wp-content/uploads/2021/05/tether-march-31-2021-reserves-breakdown.pdf
Since only 3.87% of Tether's reserves are in cash, cash probably wouldn't make up much of any redemption.
If you didn't want any of the other forms of reserves like commercial paper (unsecured loan) from some unnamed entity, you probably wouldn't want to redeem Tether but instead would want to trade them for some other cryptocurrency.
So the main purpose of Tether appears to be to provide liquidity to a stable value backed by faith in Tether Limited. Tether Limited appears to be a fan of fractional reserve banking.
USDC is paying 9% on Voyager and Gemini dollar (GUSD) is paying 7.4%
GUSD is fully audited MONTHLY and is backed by State Street Global. I’ll take that over shady Tether.
GUSD is fully audited MONTHLY and is backed by State Street Global. I’ll take that over shady Tether.
Thus, what does your experience say about 75% of BTC vol due Tether ?
Such vol in demand, does that impact/effect the price of an asset?
No, I do not believe the volume affects the price which is quoted in US $ on all exchanges when exchanged for fiat
over 90% of circulating supply of Tethers are held outside of exchanges, see my list
If you look at item 2C on my list, the traders prefer to use Tether rather than wiring US $ using antiquated banking system
Tethers are superior $-pegged crypto digital asset
The reason it is difficult to understand for ET folks is that it requires exposure to crypto utilization
Once you go cryptos, everything is extremely outdated and inferior in the traditional (electronic) financial system
It's so difficult & new, that it changes the basic/ancient laws of supply and demand.
Have you ever handled Tether in a crypto wallet? Try it with a few hundred $ and play around with it, I suggest a Metamask wallet
It's not like Venmo or PayPal or any of your centralized banking digital fiat money
And if you want to redeem it for $, you do not have to make it so complicated
You can sell Tether for US $ at any exchange. Even Coinbase accepts Tether for deposits and can be exchanged for US $ and then you can wire to your bank
Are you worried that your $100M in Tether can't be sold for your beloved US $? Whay don't you try it and let us know. There should not be a problem
The exchanges will redeem Tether should they choose, but I hate to break it to you, Tether has high demand everywhere, hence the high yields and the constant printing of it
Big money are being deposited at Bitfinex that makes the Tether printer go brrr
They do sometimes burn Tether when they are being redeemed for fiat
No, you are correct and I was being lazy not listing the necessary steps
Tether and stablecoins do not have yields by default in a regular crypto wallet, unless it's a platform wallet
For example, storing Tether and stablecoins on a Celsius, BlockFi, Voyager, Nexo wallet app (mobile app or web desktop version) will give you high APY
Depositing on DeFi platforms such as AAVE will also give you high yields on stablecoins
Storing on a Metamask, Trust Wallet or any non-custodial wallet will not produce yields on stablecoins
https://cryptobriefing.com/tether-shares-assets-backing-usdt/
Tether doesn't hold much cash. The majority of it is cash equivalents which means you have external credit risk. So not only do you count on tether to maintain their assets, you also have to worry about what cash equivalents they hold.
What happens during a bank run on tether? If tether is backed, and stable, I should be able to convert 1:1 between tether and the underlying at any time (sans any conversion fees). An example of this in the real world is PSLV which will send you silver bars if you meet the minimum account value (1000 oz. iirc). You can be certain tether won't meet it's obligations and it's linked currencies will fall since tether is the most used currency to buy bitcoins. Demand for linked currencies shrinks because the stablecoin fails and the price falls. It's simple economics. "Exogenous variables" is the fancy fama-french term.