What Happens If Tether Crashes ☠️💣🔥

in #crypto7 years ago (edited)


Steemit post: https://steemit.com/cryptocurrency/@davidhay/tether-usdt-cryptocurrency-risk-vs-reward

The crypto community has been concerned about Tether, so lets take a look at what happens if it crashes. In this video, we separate the FUD from legitimate concerns. I also explain what I'm personally doing to mitigate my own risk.


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@davidhay thanks for the opinion piece.

A good run up should either eliminate Tether, or prove that it is the real deal. I am ancxiously awaiting.

@davidhay. I’m curious but I found you on steemit from YouTube. I typically check out the people I follow here by looking at their blog, comments, followers and wallet. I’m very confused with your wallet. Are you letting you rewards pile up? Your transaction history is limited to say the least. You’re not declining payouts on your posts so it stands to reason you’d have some form of account balance or a transaction history showing you sending money out. Either way is fine by me, I’m just confused with how this is possible. As an investor in steem power, can you please help me understand why your account doesn’t look right. It’s the only account I’ve seen that doesn’t add up. If you’re letting rewards pile up, will you lose them at some point? Nothing against you, (I’ve learned a lot from your YT channel) just looking for some clarity. Thanks for your understanding! :-)

There's a difference between transaction history, curation rewards, and author rewards. Take a look at [Rewards] > [Author Rewards] to get a better idea. Looks like it's mostly in SBD, which would make sense considering he typical invests long-term.

Yes, I see he’s making some good rewards but he’s not collecting them. This is the confusing part. If you don’t want to collect, then why not decline payment and let the rewards go to someone else? I say hit the collect rewards button in your wallet! 💰💰💰

Hmm, you're right. New tokens are created at yearly inflation rate of 9.5% - maybe the return for claiming your rewards sometime in the future is greater than the amount you receive yearly in interest holding SP? I'm guessing at this point.

👍

Personally I don't think Tether is much of a risk anymore than Bitconnect was. USDT has a similar market cap now to where BCC was before it blew up.

The difference between inflow and market cap and how it relates to Tethers.

One thing I often see on the crypto forums and sub reddits among newer investors is the confusing of market cap with the amount of money invested in crypto. It seems most people think that if the crypto market cap is $700 billion, that means that $700 billion has been invested in crypto, but this is incorrect, and in fact the real numbers are very far apart. So confusing these two figures really distorts your perception of the market and the impact of certain factors around the marketplace.

For example, let’s look at the Tether scam and how Tethers were used to artificially inflate the price of BTC. Most people look at the market cap and say Tethers are such a small percentage of that so it should have no real impact. However, when we look at net inflow, the actual money invested into crypto, the total is only $10 billion as we estimated earlier. This means that Tethers could be responsible for as much as 20% of the current market cap! The implications of this would be catastrophic for the overall markets if this were true.

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Great info, thanks for adding this.

+1. I just watched the video and was going to add this information! :) Thanks for adding! :)

The more we weed out the bad ones and make room for the stronger platforms and cryptos out there, the better our environment! Thanks David!

I'm a bit suss on tether... then again i'm a bit suss on crypto in general lately!

Tether needs to simply go away. Any entity that has over $2 billion in assets has ABSOLUTELY NOTHING to hide. I don't think they anticipated this would grow this large.

You'd be surprised re: "nothing to hide" about that large value of a company, but I agree, Tether just cannot leave a good impression right now if it's life depended on it....

Dave, just watched this on you-tube, decent "out of the box" thinking video, and will open some eyes to the unknowing about the practice of fractional reserve banking. Will give you all your credit due for this mate.

@davidhay, thanks for the video! I think it is ok if Tether is using a fractional reserve system, since its main purpose is to provide liquidity. But they will need to be transparent with it and should not claim that it is 100% backed. I think if it does collapse, not only their market cap will be wiped out, there is going to be a strong possibility of panic selling at exchanges that use USDT.

Personally, I try not to hold USDT as well on exchanges.

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