RANDOM THOUGHTS ON TETHER - WE REALLY NEED IT OR EXCHANGES DO?
Hi everyone, I am exploiting this weekend of quarantene for listening to music and reasoning about markets. When they are closed it is perfect as I can focus on details and reason with cool mind.
"Make sure before you get in, you know the insurance won't cover this" as Marylin Manson says in one of his songs, is exactly what came to my mind when I think of tether, alts and exchanges that allow you excessive leverage.
We have 4billions of tether around, 600 millions printed in 2020 only. Currently #4 crypto by market cap. Fourth! Without entering the discussion on whether they are backed or not by real collateral in usd, where all this money goes? What is the point of having a crypto like this?
It is pegged to 1usd and controlled by a centralized entity, both of these features are the opposite of bitcoin vision and goal it was created for.
I understand that it allows to park liquidity in bad times (me personally I never used tether in my pluriennal crypto experience), but if you do not wanna risk to lose when bitco goes down, why not simply sell and keep the amount in usd or eur? There are plenty of exchanges that does it out there. They are centralized? So is tether, with the difference that exchanges like Kraken have much better security and they also have to comply with legislators.
USDT is part of a mechanism that exacerbates market fluctuations and allows intraday trading on nothing (because some alts are NOTHING for real), as well as excessive leverages do (remember that with a 10x leverage you just have a 10% market move against you allowed before getting rekt, just 5% with 20x and only 1% with 100x). You have money ready to use, to bet on another 50x bet. Some exchanges (you know which ones) want you to trade and provide you with things that have nothing to do with crypto. In the top 15 we find another stable coin (UNUS SED LEO) and a utility token of Binance BNB that is used for trading. We do not even talk about BCH which is a joke, XRP who is simply not a decentralized thing and EOS that got 8 billion in IPO but delivered NOTHING and is now worth less than 2 as I write.
My impression is that the alt market, beside the top 5, is completely kept alive by this thing called USDT, that in the end works against us: imagine if we all buy Bitco instead of dissipating our efforts and our money on 2000 cryptos.
What do you think? Let me know in the comment section below after a welcomed LIKE and FOLLOW to be updated on my ideas. Do not worry about spam as I am not an intraday trader!
"Make sure before you get in, you know the insurance won't cover this" as Marylin Manson says in one of his songs, is exactly what came to my mind when I think of tether, alts and exchanges that allow you excessive leverage.
We have 4billions of tether around, 600 millions printed in 2020 only. Currently #4 crypto by market cap. Fourth! Without entering the discussion on whether they are backed or not by real collateral in usd, where all this money goes? What is the point of having a crypto like this?
It is pegged to 1usd and controlled by a centralized entity, both of these features are the opposite of bitcoin vision and goal it was created for.
I understand that it allows to park liquidity in bad times (me personally I never used tether in my pluriennal crypto experience), but if you do not wanna risk to lose when bitco goes down, why not simply sell and keep the amount in usd or eur? There are plenty of exchanges that does it out there. They are centralized? So is tether, with the difference that exchanges like Kraken have much better security and they also have to comply with legislators.
USDT is part of a mechanism that exacerbates market fluctuations and allows intraday trading on nothing (because some alts are NOTHING for real), as well as excessive leverages do (remember that with a 10x leverage you just have a 10% market move against you allowed before getting rekt, just 5% with 20x and only 1% with 100x). You have money ready to use, to bet on another 50x bet. Some exchanges (you know which ones) want you to trade and provide you with things that have nothing to do with crypto. In the top 15 we find another stable coin (UNUS SED LEO) and a utility token of Binance BNB that is used for trading. We do not even talk about BCH which is a joke, XRP who is simply not a decentralized thing and EOS that got 8 billion in IPO but delivered NOTHING and is now worth less than 2 as I write.
My impression is that the alt market, beside the top 5, is completely kept alive by this thing called USDT, that in the end works against us: imagine if we all buy Bitco instead of dissipating our efforts and our money on 2000 cryptos.
What do you think? Let me know in the comment section below after a welcomed LIKE and FOLLOW to be updated on my ideas. Do not worry about spam as I am not an intraday trader!
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Or simply you don't want to risk it?
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Check it out now → ftmo.com/en/?affiliates=2427
