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RE: Bitcoin on CNBC 📺
haha! 😃 glad you liked it.
Ya, the risk with Tether is it's all centralized and you're just trusting the people behind it. So you run the risk that today's the day it goes kaput. There are other stablecoins too, like BitUSD on Bitshares. I don't know too much about them and what the risks or differences are.
I know Tether is theoretically backed by real USD by the people who run it. They hold a USD for every Tether they print, allegedly.
But so it's like.. even feeling confident that Bitcoin will go down, do you trust Tether for a year to try to 2x or 1.5x or so on your BTC? meh
It's tough out there.
Might be centralized I agree but so far is working just fine. I’d like to use sbd instead but you know too that even though it is supposed to work at its peg it just doesn’t. Flows with the market. Besides tether is not for 1 year holdings. But more likely for short term trades.
Ya, the less long you hold it for, the less likely it is to go kaput on you. But I'm saying a year as in that might be when it seems like the crypto market has bottomed and you'd want to buy back in.
I can hold Tether for a few weeks and feel pretty comfortable, but also the crypto market won't have dipped as much in that period.
Ya, I'd like to hold SBD, but indeed, it doesn't seem guaranteed to hold its peg.
Tether works so well because it's literally just Bitfinex people promising that they have a dollar to backup every Tether that they create, as far as I know. That's why it holds at a dollar. But the risk is you're trusting them, that they really have all these dollars and won't run off with it.