I'm not sure I agree with the conclusions regarding tether, though it does definitely stimulate thought.
Perhaps the reason why tethers are even necessary in the crypto market at this time is the lack of a viable clearing house. Most ordinary traders go straight through an exchange and purchase their desired crypto asset directly with USD funds. I have never bought a tether coin for a transaction, though I have had to use uniswap to purchase coins that are not yet listed on exchanges. In those transactions though, I always use ethereum as my middle coin. That does not seem to be the nature of the transactions referenced in the article, as the article highlights the massive volume of USD being moved through tether. This is indicative of larger institutional traders using tether tokens as a means for more assurance of transactions in the market. I think once crypto has a secure and regulated clearing house, tether tokens will likely become obsolete.
What this points out is that the tether exchange offers leverage, allowing people to trade on margin, messing with the value by using money that doesn't exist.
Blockchain is crowdsourced, verifiable, authenticated accounting, and quite useful screen without electricity. Don't blame others for not explaining it, if you don't understand it. Crypto and cryptic markets are another thing entirely, and susceptible to scams.
This is one way bitcoin is a scam. There may be others. https://crypto-anonymous-2021.medium.com/the-bit-short-inside-cryptos-doomsday-machine-f8dcf78a64d3
Interesting read.
I'm not sure I agree with the conclusions regarding tether, though it does definitely stimulate thought.
Perhaps the reason why tethers are even necessary in the crypto market at this time is the lack of a viable clearing house. Most ordinary traders go straight through an exchange and purchase their desired crypto asset directly with USD funds. I have never bought a tether coin for a transaction, though I have had to use uniswap to purchase coins that are not yet listed on exchanges. In those transactions though, I always use ethereum as my middle coin. That does not seem to be the nature of the transactions referenced in the article, as the article highlights the massive volume of USD being moved through tether. This is indicative of larger institutional traders using tether tokens as a means for more assurance of transactions in the market. I think once crypto has a secure and regulated clearing house, tether tokens will likely become obsolete.
Just my 2 cents.
What this points out is that the tether exchange offers leverage, allowing people to trade on margin, messing with the value by using money that doesn't exist.
Blockchain is crowdsourced, verifiable, authenticated accounting, and quite useful screen without electricity. Don't blame others for not explaining it, if you don't understand it. Crypto and cryptic markets are another thing entirely, and susceptible to scams.
You should read before reacting.