Subnostr

I get that people are looking for a flight to safety and relative stability of the dollar is attractive to those of us who use 3rd world currencies

USDT has become this #eurodollar market for those who didn't have access to USD on traditional rails but what is the cost of this "stability" ?

While I hear so much talk about de-dollarisation on the state level, it sure does look like hyperdollarisation on the individual level, when you see how large #USDT is becoming, and all this demand feeds into buying US treasuries

Tether registered a record-breaking $4.52 billion in profit for Q1 and has $110 billion market cap, that's capital still in the dollar system, that could have migrated to Bitcoin

Does stablecoin issuers buying of treasuries get them to a point where they become too big to fail? Or will this be the largest honeypot that ends up being a biblical rugging of liquidity?

https://news.bitcoin.com/tether-q1-2024-attestation-reveals-record-4-52-billion-profits/

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Discussion

Layerjack (Onion Knight) 1y ago

Yes. Stablecoins are absorbing US debt indirectly. That's why their regulation has been postponed by the Congress.

Avoid stablecoins if you are against sponsoring the big system.

TheBitcoinManual 1y ago

Rather stablecoins than a failed auction I suppose, but i'm sure they have to be getting pretty cosy I think Tether holds more US treasuries than most countries.

I don't use stablecoins, I don't have a need for dollars, I know they were also popular with traders who want to park profits, but with crapto taxes becoming stricter, that offshore parking of dollars might not be that safe haven they once through it was

Layerjack (Onion Knight) 1y ago

What failed auction?

You don't use stablecoins, but I bet you also don't use bitcoin to buy physical goods. Correct me if I'm wrong, good sir.

TheBitcoinManual 1y ago

A treasury auction..

No, I don't use my Bitcoin to buy groceries, I also don't rip bricks out of my house or parts off my car to pay for groceries either, lol the shop wants fiat, what am I mean to do starve to prove a point?

Bitcoin is my store of value, Its the problem it solves for me, medium of exchange is handled by fiat and i am all too happy to get rid of fiat to acquire my groceries because time and fiat is a liablity, any fiat I don't need short term I'd convert into bitcoin

Layerjack (Onion Knight) 1y ago

I aint a shlomo, I have no access to a treasury auction.

I actually use crypto to buy physical goods. A different kind of brick 😁

I thought you were my nigga, but you brought up the store of value bullshit. You have been demoted to a nigger.

TheBitcoinManual 1y ago

Lol to each their own, I have no interest in what other people do with their money you do you, I'm trying to get out of their local currency and it stores value for me, and does well at that, just the reality

Besides I stopped being anyones nigger the moment I got property rights, mans on that F U money now

Layerjack (Onion Knight) 1y ago

https://video.nostr.build/c06a9b1206aff7d4aae30ae4acb59d10a1dae1d1d131ad250e36e0d4a0601f3d.mp4

stache 1y ago

So USDT is manna from the man?🤔🤯

TheBitcoinManual 1y ago

I'm not like a regular dollar I'm a cool blockchain dollar, but still a dollar none the less!

stache 1y ago

🤔so ur a shinier sh*tcoin🤣🤣👊🏼

SovereigntyQuest 1y ago

Throw in USDC, who seemed especially since 2020, to be the preferred choice for well-integrated institution/regulatory groups. Also throw in MiCA's regulations on stablecoins, which has already apparently caused OKX to delist USDT on it's exchange for EU users. Like you say it's very unclear how this will move on given the massive, EU dollar type, role Tether seems to have taken on.

hh 1y ago

So basically Tether is only making whatever the bonds yield right now. Sounds like they're doomed in the mid to long term.