I just read about Tether here.
I have a lot of questions.
Questions about Tether are answered on their web site.
I’m not really sure how to respond to that. I am posting it here so that it is up for discussion seeing how it is a fairly big break through. Supposedly.
I get notified there’s a new post, I come to the forum and what do I see?
A post without content. A marketing bot would have created something better.
I asked what Tether is in the post title. I linked to an article and their website for what I thought in a discussion forum would be discussion purposes.
So do you have something to add, ask or talk about? Or do you prefer to behave like someone who is sex deprived?
You’re literate, right?
You didn’t read those, or you read them but didn’t understand the answers, or have a question that’s not answered there.
Which is it?
The only conclusion I can derive from your “posts” is that you didn’t read the FAQs or any other material from the site. Because in any other case you would have asked a question. Do you want me to copy-and-paste those FAQs here?
I’m done here. I have far better things to do than argue with some bored loser who hates his life.
Go get a root mate.
What are the questions? Not sure if anyone here can help you but we can try of course.
Well for starters, is it even required? I’m not really understanding why we need another currency to act as intermediary. All of the reasons I can come up with seem very contradictory to me apart from reducing Bitcoin volatility which I suspect is the true reason behind it.
Investors and their integration partners put some money in the company which shows that they are confident there is a need to combine the properties of the Bitcoin network with the (relative) stability of certain fiat currencies. Maybe they’re wrong, we don’t know, but they put a fair bit of money betting on that. They wouldn’t do it if they didn’t think someone would like to pay for such service.
You (here) said you’d like to be able to trade
MAID directly for
USD without going through bitcoin. That’s what
USDT allows you to do (sell
USDT and cash out in any “supporting” financial institution).
What are those reasons?
That much is clear from the Tether FAQs. But it not only allows companies to reduce volatility, but also cut down on conversion (entry/exit) costs and simplify their blockchain platforms (because users can completely do away with bitcoin price index derived from 3rd party APIs and keep their prices in fiat).
Tether’s problem is the government. They have to spend a lot of money to get “legalized” and they and their customers are always going to be limited in what they’re allowed to do. There’s nothing they can do about it, though.
PP transactions are reversible whereas USDT are not (although counterparty risks remain).
USDT is expensive because of the government regulation.
Tether seeks to bring the stability and everyday utility of fiat currencies
Hah! It’s nighpossible. It’s gonna fail just like bitusd shares. The design is to get you rid of the tether quickly as possible! That is because of inflation. Tether will have to pump in more reserves into the system to order to keep it “balanced.” Guess what, federal reserve is pumping billions of dollars into the market on yearly basis. So tether will have to do the same.
Tether doesn’t promise that it will retain purchasing power, but that it will retain the peg.
But yes, fiat sucks!
In the FAQs they don’t explain how they are actually making money and pay their employees. Instead, they even “absorb all the bitcoin fees”, which sounds to me as if they pay the fees for you (or did I misunderstand this?)…
No, when you exit you pay everyone (their partner and Tether), so by paying up front tx costs they kind of being people on board.
It’s not a bad idea but it will not work because they have worst disadvantages of fiat and Bitcoin (because of regulations) at the same time. In a free economy it’d be a nice solution.
Beware, this website (tether.to) is unreliable, I used it successfully for a few months but I tried to make a withdrawal to my bank account one month ago, it showed as completed but I still didn’t receive anything. I tried to contact them for two weeks and got no answer, contact form multiple times, twitter, facebook, I heard nothing from them for two weeks now. No user support, no automatic message, nothing…