Been hearing about Tether (USDT) FUD for as long as I've been in crypto. Now's the first time that I have enough information to provide an informed opinion on the subject. So yeah.
TL;DR — You take risk regardless of the financial system you choose to support. How you define that risk determines your placement in each system.
All of the faggity newfag paperhand crypto holders screaming "Tether is a scam" — like this is new information — only help to keep the market down. We won't resume the bull market until all of these people have been removed from the system. Much in the same way that the US dollar won't resume its bull market until all the folks who don't believe in the US dollar are out of the US dollar.
This means the US dollar will likely never resume its bull market. Pandora's Box is open, and everyone who matters knows how the Fed really operates. It's an inflationary mechanism from a private company designed to inflate the value of assets priced by it, creating the illusion of rising value in the system it supports. The guns the US dollar buys and the lives of the thugs it supports make it a system real enough for most contingent upon its solvency. Because if that system is solvent and you go against it, you can get your head blown off.
Unfortunately for that system, lately that solvency has been in question, and not by the libertarian sigma loner superhero. The international banking cabal, via the Great Reset, is questioning the viability of the US dollar based international financial system. Add to that the speculative attacks of folks like Michael Saylor, Max Keiser and the trillions they bring in through their network and marketing prowess, and you have a system that has been sufficiently enough challenged to never regain the footing of its prime in the 1950s.
Whether or not you believe in the overall solvency of this financial system, its weakness now leaves room for competitors to usurp market share. "Crypto" is a competitor. A legitimate one that for now retains power beyond what the legacy system can control. This is a fact not in question. Whether or not dumbasses who participate in crypto will hand over this power — that is a question yet to be answered.
Within this competitor financial system Crypto there is a popular stablecoin Tether/USDT. To achieve market share, USDT took on a company structure similar to that of the Federal Reserve. First of all, the company itself must be above the law. The Fed achieves this through synergetic agreement of a majority of violence controllers and the appropriate payouts to the appropriate number of thugs. Tether achieves this through virtual obfuscation of its legal and physical standing, which creates an inability for physical violence upon it to cease and desist its operations.
Put another way, Tether does the same thing the Fed does — inflate its chosen market with a vehicle tied to a stable value that buyers of that vehicle can use to buy and value other assets within that market. No difference. Zero. What separates Tether from your local counterfeiter is that no competitor can send its goons to usurp Tether's vehicle, call it counterfeit, and remove it from the market. The guy printing counterfeit bills in his basement can be arrested. Tether cannot.
This is not to say that Tether can't be disenfranchised. The fight between Tether and its competitors is nothing more than a system of belief vs. another system of belief. Islamism vs. Christianity. Bomb the Vatican all you want — there are billions of people around the world who will continue to believe in Roman Catholicism. The idea is in people's heads, not in any physical location. Even if Tether had the ability to bomb the Federal Reserve, there are enough idiots who'd still believe the USD derives its value from God or something and continue to use it.
In the same way, if the New York Fed bans Tether, that could slow down crypto for a hot minute. If there's enough agreement and it goes to the federal level in the United States, Tether could take a hit and even move off of its peg perhaps. This could cause a ripple (pun totally intended) effect within crypto and we might see nominal prices fall in that market against the US dollar.
There's one major difference between the Fed and Tether, though. And it's the number one reason you shouldn't be scared of any Tether FUD.
The US Fed, through guns and coercion at the end of those guns, runs the entire world economy. Tether doesn't run crypto.
Tether is just the most popular stablecoin right now.
What the noobs get wrong, even the technically educated ones, is that Tether is not equivalent to crypto. They think it is, and honestly I don't know why. It's honestly hilarious to me that guys like TechLead would sell their bitcoin based on Tether FUD when he himself could make another Tether in a matter of hours. Crypto is a free market. Anyone can participate. If Tether went down, there would be another Tether in a month. Nominal values of crypto against fiat would fall — for a while. It would honestly be the best buying opportunity in years.
I mean, that TechLead guy said he sold all his BTC because of Tether FUD. WTF?! BITCOIN WAS AROUND BEFORE TETHER EXISTED! And you base the value of your bitcoin on Tether (USD)?
What, does the speed of transactions fall if Tether gets nuked? Do we have to re-solve the double spending dilemma? Are all of the websites and companies like Visa who now have crypto payment rails just going to return to business as usual?
These educated morons are looking at the correlation between Tether inflation and crypto market inflation as if that's God's metric or something. Yeah, Tether is popular, so when it prints, it may be able to buy up crypto assets and inflate the prices. Same thing the Fed does. If Tether goes down, other stablecoins will take its place, just like it would happen in the physical world. The difference is that creating another Tether can happen much more quickly than creating another US dollar. So crypto would recover much more quickly than a fiat restructuring. The problem is these over-educated morons, even the technically educated ones, don't apply the advancements of crypto into their assessments. This is really weird considering they have more access to and knowledge of the technology that actually makes this stuff happen. Fucking weird.
I can't say it's weird. I know the logical flaw they're making. They still think of the USD as the denominator value.
I'll put it this way. You have a paid off house. The US dollar gets nuked. The nominal value of your house drops from $500,000 to $50,000 overnight.
Does that mean the structure's roof doesn't protect you from the rain? Does it mean you can't continue to hang your clothes in the closet? Do the chairs stop working? Does the floor give way?
Regardless of the value of USD, 1 house = 1 house. In the same way, regardless of the value of Tether, 1 BTC = 1 BTC. 1 ETH = 1 ETH. As long as these protocols retain their value propositions, their value related to USDT or USD is a secondary concern.
However, if you still denominate your home in USD value, like you still have a lien on it or something with 5% equity in it, then a $450,000 drop in value might cause you disease. 1 house still = 1 house, but your vision of that is blurred because you cannot fully separate yourself from the financial system surrounding that house just yet. Another way to say it — 0.95 house the bank still owns = 0.95 house the bank still owns. Your 0.05 equity in the home /= 0.05 equity in the home because they are calling in your loan.
Tether FUDders are afraid the USD value of their BTC will go down if Tether gets fuckt. That's the bottom line.
There's no reason to fear this. The answer is yes. If Tether gets fuckt, the USD value of your BTC will plummet in the short term. Not in the long term, but that won't matter because you clowns won't be around long enough to let the value come back up. But the argument of staying out of crypto because Tether is a scam — that's just stupid.
Any argument to be made against Tether should be politically based, not economically based. Because the existence of Tether is a political question, not an economic one. Even at its worst, Tether's just doing the same bullshit the Fed's doing. So the question is — can the executors of the strategy be cut down? The strategy itself is viable in both markets. It's just as scammy or as viable in both markets, and for the exact same reasons. But crypto has an advantage: In crypto, the strategy can be duplicated and improved upon almost instantly if the original strategy is faulty.
Don't get me wrong — as much as I'm making fun of it, the fear is legitimate. I'm going to fuckin CRYPTO conferences where the piece of shit organizers want their fuckin ticket money in USD. There's not even an option to pay in crypto. Hilarious. So even the leaders of this space haven't gone all in. That doesn't say a lot for the space, and its the reason I still view this entire thing as a trade, not an investment.
A long term trade to be sure, but a trade nonetheless.
That being said, I put my money where my mouth is. I redenominated my life into BTC a while ago. If Tether goes down, I'm still a holder. Hell, I might even put a stablecoin protocol on the market if that happens.
So that's the truth about Tether FUD as I see it. If there's anything technical wrong with my argument, I'd love to hear about it. But please don't litter my comment section with shit about "Tether is a scam" or "Tether isn't a scam." You don't fuckin know, dumbass.
What you can do is assess risk in multiple scenarios and most importantly, determine where your personal bias and loyalties lie so you can make a life plan around a viable investment strategy. That makes sense, not pretending like you actually know the fuckin percentage of Tethers backed by USD or not. "Dude, some shit website just reported that it's actually 5.4% and the rest is backed by a horse farm and derivatives of the performance of two e-sports teams!" Shut the fuck up.
Bottom line: If you value your BTC in USD, you're taking on political risk. I hope you sweat bullets and have to drink yourself to sleep every night. Or you can do us all a favor and sell now, you bitch-made lollipop suckin loser.
If you value your BTC in BTC, bravo. Just sit back and chill.
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