[gerikson]

The main issue is what will happen when holders of USDT try to redeem them. Tether says it's immune to a bank run, because they have the entire outstanding amount of USDT (3.83B at time of writing) is backed 74% with USD.

If you believe that a company without access to banking actually has 2.8B USD available for disbursement, then you are more optimistic than I am.

[repomies691]

I'm just saying that tether has worked for years, and the peg seems to be still there. All those years also people have been saying that tether will lose its liquidity any moment. Might be but tha market data says what it says.

As I said I haven't used tether and highly probably will never use it - I don't have any use case, bitcoin is enough for me. However if I had some use-case for moderate amount and months of timespan, I would probably use it (depending of course on other alternatives - AFAIK USDT is de facto "USD coin" on many exchanges).

[arcticbull]

Tether has not worked for years, they say on their website they're not redeemable for dollars ever. Yes, I suppose by that metric chuck-e-cheese tokens work too, but you'd have the same luck trying to get your cash back out of either. It's "worked" on a hope and a prayer because crypto-to-crypto exchanges who can't achieve AML/KYC compliance rely on it. How else are the narcos and the sanctioned supposed to launder their proceeds? When this whole thing goes tits up how long do you think it'll take before the founders go "missing" like Gerald Cotten?

Their CEO literally tried to start a ponzi scheme right before he kicked off Tether haha (https://steemit.com/bitcoin/@binyamin/bitfinex-s-founder-see...) and you trust these people that they're just plain sitting on BILLIONS of dollars?

You know what they say, first you go broke slowly, then all at once.

[cmmeur01]

> How else are the narcos and the sanctioned supposed to launder their proceeds?

HSBC seems like a fine choice no?

[gerikson]

Please update your references, HSBC was ages ago

https://www.theguardian.com/business/2018/sep/21/is-money-la...

The real narcos and kleptocrats don't bother with Bitcoin, that's for small fry.

[michaelt]

  I'm just saying that tether has
  worked for years, and the peg
  seems to be still there.

A parachute that has "seemed to be there for years" is all very well - but evidence it's fine when no-one pulls the ripcord doesn't tell us what'll happen when someone does.

And if it's a parachute, what happens when someone pulls the ripcord is kinda the most important thing :)

[roenxi]

> I'm just saying that tether has worked for years, and the peg seems to be still there.

But traditionally in finance, when things go wrong everything is fine for a few years then everyone loses all their money.