Monday, February 5, 2018

Thoughts on Tether

Everyone in crypto is doing this, so I'd share my updated view again. I did write about Tether months ago when it was "only" at $600M. We've come so far.

All the reputable crypto youtubers which I watch absolutely do not use Tethers at all.

I have not, and will never, use Tethers.

I have my own theory regarding Tether (USDT exchanges are fractional banking and are hedging out their positions by buying USDT during downturns), but honestly, it doesn't really matter. As a consumer you should just know that:

(1) there has never been an audit by a reputable auditor and 
(2) even if an audit reveals that Tether has the money, it doesn't mean that you can redeem it, because I have not come across any reliable source that has.

Point 2 is really, really important. Even if Tether can prove that they have the money (which I doubt), that doesn't mean that they are obliged to allow people to redeem it.

I am just staying away from the whole shit show. Likely when / if this whole thing hits the fan, people playing the USDT pairs and holding USDT will be the final bag holders.

Will it actually be an big issue? I don't think so. Anyone non-retarded doesn't use USDT or fully and willingly accepts the risk of this cancer. However, it's gonna be one of those stories that gets thrown around and probably lots of noobs will be selling out. I'll probably be buying the dip, lol.

I am looking forward to the stablecoins of both the DAI and DGX to fix the whole situation though. I believe that it is going to be a game changer. I am own a shit ton of DGD. I'm not shy to admit it. I think it's my most genius pick ever.

Anyway, what I have done is:
- Avoid Bitfinex completely
- Not use or accept any Tethers
- Withdrawn all my crypto from USDT exchanges (except for Bittrex and Binance)

I will be withdrawing my crypto from Bittrex and Binance moving forward as I finish my selling / accumulation of altcoins on those exchanges and decide to move them into my own custody. The benefit of moving coins out of exchange is 2 fold - 100% control over your own crypto and increased HODLing strength due to the ley-chey-ness of having to transfer back to the exchange to make quick trades.

Anyway, I think one of the interesting themes for 2018 moving forward will be DEXes and Stablecoins, which almost seems like a direct response to the threat of Bitfinex and Tether blowing up.

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