PSA: USDT (Tether) is an Altcoin and a Trap
The following is my explanation of the recent posts on bitfinex and USDT.
Your USDT are worth at most $1 each only as long as people are willing to pay you for it. Your USDT will never be worth more than $1, as Tether Corp will release more USDT as demand increases. However, if no one wants tether, then each USDT can become worth a lot less than $1...UNLESS Tether Corporation buys back their USDT, which they have never appreciably done before and likely will never do, because they already have your REAL FIAT USD money in exchange for an ALTcoin with no technology, no speculative value, no place in the amazing world of sparkly blockchain crypto future. USDT is simply monopoly money masquerading as fiat currency, and therefore completely out of place in true cryptospace.
In the bestest of scenarios, if you are holding USDT, you are simply holding the equivalent amount of USD (along with what that entails including inflation) but WITHOUT the security of being able to actually use it/trade it in real life like you would USD. And I think time will tell that actually, if you own USDT, you are holding the "hot potato" - the proverbial ticking time bomb. Things are fine now because the music is playing and most people are a bit clueless as to everything that's happening in cryptospace. But whenever that "music stops" and people wise up, I want to warn you that you don't want to be holding USDT. That music stops when enough people and exchanges realize that USDT is just another altcoin that will never increase in speculative value (unlike other altcoins) and is artificially being used to increase bitcoin price. People will then realize they should stop buying bitcoin at USDT prices with their USDs. Bitcoin will drop to its true fiat value, whatever that may be. Anyone holding USDT will now be competing against other USDT holders to buy back bitcoin at higher than USD prices. And the moment this happens, USDT becomes un-coupled from USD, faith in USDT disappears, and this house of cards falls apart. Bottomline: USDT holders will lose a lot of money before this is over. For now, my advice is, if you own USDT, move it into bitcoin at a loss (because I know almost all of you current USDT holders sold your bitcoin lower than where it is now, because USDT were used to buy your bitcoins), or move it into stable altcoins, like Monero or Ethereum which have mostly maintained their USD value and have not been artificially raised by USDT yet and therefore are still at pre-inflated values, unlike bitcoin.
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