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Toolie92

Joined: 3/5/15 Posts: 5006
Likes: 2593


USDT


Looks like USD. Claims to be equivalent to USD. And if you deposit USD or sell BTC at certain exchanges they will give you USDT in return, not USD.

But if you read the TOS you will see there is no guarantee whatsoever that it will be redeemed for anything, and in fact you cannot practically redeem it for USD, you are just told to find someone else who will give you Bitcoin for it.

It is fake money used to inflate the BTC market. There used to be only $30M of it, until the exchange that invented it (in order to avoid paying USD to account holders after they disclosed they were hacked) lost their US banking privileges. Now that exchange has over the last 9 months 'created' out of thin air another $780M of USDT in order to buy BTC from fish, with no guarantee those USDT are redeemable for anything except if you find another fish.

As long as gullible people are willing to accept USDT in exchange for BTC or USD deposits, there is no reason for Parker Bros to stop printing monopoly money. Think of it like a money market balance, except that the institution taking your money in exchange for said money market balance is unregulated and can create its own money market accounts apparently full of the same 'USD-equivalent' securities.

[Post edited by Toolie92 at 12/06/2017 5:30PM]

(In response to this post by 2001Hoo)

Posted: 12/06/2017 at 5:27PM



+1
Current Thread:
 
  
Bitcoin $400,000 according to Mark Yusko -- BrevardHoo 12/06/2017 11:04AM
  The miners are trying to validate prior transactions -- BrevardHoo 12/06/2017 6:24PM
  You mean like the Dutch Tulip? :) ** -- Blah 12/06/2017 2:39PM
  So are you saying Yusko is full of shit or what? ** -- BrevardHoo 12/06/2017 2:35PM
  I think he keeps his own money where he can get it -- Toolie92 12/06/2017 2:41PM
  You are not answering the question: $400k or not? ** -- BrevardHoo 12/06/2017 2:44PM
  On paper? -- Toolie92 12/06/2017 2:54PM
  By fake money do you mean USD? ** -- 2001Hoo 12/06/2017 5:14PM
  USDT -- Toolie92 12/06/2017 5:27PM
  Enjoy the ride -- Toolie92 12/06/2017 3:22PM
  And Oswald didn't shoot Kennedy ** -- BrevardHoo 12/06/2017 3:34PM
  That is not even close to accurate -- CavalierLion 12/06/2017 4:22PM
  Steam just ended Bitcoin support -- Toolie92 12/06/2017 5:36PM
  For every Steam there are a thousand companies paying -- BrevardHoo 12/06/2017 6:35PM
  It has moved way beyond that on the shady scale -- Toolie92 12/06/2017 2:24PM
  What about MasterCard or Amex/Versa? ** -- hooyorkcity 12/06/2017 6:35PM
  Yes and no, I think -- MaizeAndBlueWahoo 12/06/2017 12:25PM
  I think Bitcoin is shady right now..... -- Zhoo 12/06/2017 12:31PM
  Pretty sure Microsoft and Expedia would let you -- BrevardHoo 12/06/2017 12:27PM
  Let me rephrase the last part a bit, actually -- MaizeAndBlueWahoo 12/06/2017 12:30PM
  And technically the case when it comes to the $ too. -- The_Superhoo 12/06/2017 1:22PM
  Just like any other asset that you profit from ** -- Faz d. Hoo 12/06/2017 12:30PM
  Cap gain ** -- BrevardHoo 12/06/2017 12:25PM
  Nope, you're probably right. ** -- Lucius 12/06/2017 11:14AM

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