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Is Tether safe for long term hodl of sizeable funds?

  • 10-12-2017 10:27pm
    #1
    makeorbrake
    Registered Users Posts: 4,664 ✭✭✭


    As per the thread title, if I was to rely on tether to hold funds over a medium term time period, can it be trusted?


    Additionally, is it possible to convert one crypto to another without paperwork/id verification,etc?


Comments

  • #2
    pro_gnostic_8
    Registered Users Posts: 1,223 ✭✭✭pro_gnostic_8


    Personally, I don't trust it.
    There is a strong belief amongst many that the amount of Tether out there is not backed up 1:1 ( as it supposed to be) by U.S. dollars.
    It is worrisome that Bitfinex and Tether.io is owned by the same company, and that Bitfinex is issuing tether in enormous amounts.
    Why won't Bitfinex release a certified audit of its tether issuance and its dollar reserves. Doing so would put a lot of minds at ease. Something fishy.


  • #3
    nxbyveromdwjpg
    Closed Accounts Posts: 4,402 ✭✭✭nxbyveromdwjpg


    There are a lot of questions around Tether, but alternatives are on the way e.g: https://medium.com/@MakerDAO/introducing-the-new-whitepaper-for-the-dai-stablecoin-system-e7c6caabcfc4


  • #4
    Blacktie.
    Registered Users Posts: 2,903 ✭✭✭Blacktie.


    No. Read this LINK.


  • #5
    makeorbrake
    Registered Users Posts: 4,664 ✭✭✭makeorbrake


    Thanks all. At the back of my mind, I thought I had come across those concerns. Read so much about crypto, some of it doesn't always stay in the memory bank.


    It's a shame there isn't a token/coin that could be used as a stability safe haven - without having to cash out into FIAT - which could be used at times when folks felt it necessary.

    @Col. Jessup: Thanks for that link. However, whatever about flaws being exposed in a crypto that has at least been around for a while, I would be very nervous of using something straight out of the blocks. White papers can be presented and look pretty - but the reality for many crypto's is that once tested, they don't stand up. The vast majority are also simply just scams. I hope that one gets road tested and it ends up doing what it says on the tin.


  • #6
    GreeBo
    Registered Users Posts: 27,030 ✭✭✭✭GreeBo


    Maybe I'm way off, but isnt hodling only hodling if you keep it in a currency?

    Moving it out into Tether (a.k.a magic dollars) isnt hodling as its unlikley/impossible for it to shoot up.

    You'd be much better off cashing it into FIAT if you are not going to keep it in the "real" currency


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  • #7
    KilOit
    Registered Users Posts: 2,983 ✭✭✭KilOit


    used it earlier this year but after reading more into it i don't use it anymore. Can net you a lot of profit pairing it with BTC after bullruns but rather not risk it anymore


  • #8
    Blacktie.
    Registered Users Posts: 2,903 ✭✭✭Blacktie.


    GreeBo wrote: »
    Maybe I'm way off, but isnt hodling only hodling if you keep it in a currency?

    Moving it out into Tether (a.k.a magic dollars) isnt hodling as its unlikley/impossible for it to shoot up.

    You'd be much better off cashing it into FIAT if you are not going to keep it in the "real" currency

    FIAT means tax man.


  • #9
    GreeBo
    Registered Users Posts: 27,030 ✭✭✭✭GreeBo


    Blacktie. wrote: »
    FIAT means tax man.

    Any trading means tax, fiat has nothing to do with tax other than the Irish bank will more than likely notify revenue.

    Either way, tax is due on realized profits.
    Anything else is called Tax Evasion.

    Why not open an account in the Cayman Islands and deposit your USD there? :rolleyes:


  • #10
    Blacktie.
    Registered Users Posts: 2,903 ✭✭✭Blacktie.


    GreeBo wrote: »
    Any trading means tax, fiat has nothing to do with tax other than the Irish bank will more than likely notify revenue.

    Either way, tax is due on realized profits.
    Anything else is called Tax Evasion.

    Why not open an account in the Cayman Islands and deposit your USD there? :rolleyes:

    Except a lot of people disagree with your interpretation.


  • #11
    GreeBo
    Registered Users Posts: 27,030 ✭✭✭✭GreeBo


    Blacktie. wrote: »
    Except a lot of people disagree with your interpretation.
    Minister of Finance 2014 wrote:
    CGT is chargeable on gains made on the disposal of assets. Section 532(b) Taxes Consolidation Act 1997 states that any currency other than the currency of the State is an asset for CGT purposes. Where a person acquires any foreign currency i.e. other than Euro, he/she has acquired an asset for CGT purposes. If that person subsequently converts that foreign currency into Euro or into another foreign currency that would constitute a disposal of an asset for CGT purposes.

    I'm not sure anyone other than revenue's opinions matter.

    What of my "opinion" do you disagree with?

    /edit
    I'd welcome some proof that CGT is only due when converting back to fiat currency, but I cannot find any such proof anywhere.
    Believe me, it would save me a lot of cash.


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  • #12
    Blacktie.
    Registered Users Posts: 2,903 ✭✭✭Blacktie.


    GreeBo wrote: »
    I'm not sure anyone other than revenue's opinions matter.

    What of my "opinion" do you disagree with?

    Na not getting into this.


  • #13
    pro_gnostic_8
    Registered Users Posts: 1,223 ✭✭✭pro_gnostic_8


    Blacktie. wrote: »
    Na not getting into this.
    Too right !
    Every thread in crypto subforum whether Litecoin, Tether, Ether, or Bitcoin is developing into a tax preach-fest.
    Enough already !


  • #14
    GreeBo
    Registered Users Posts: 27,030 ✭✭✭✭GreeBo


    pro_gnostic_8 wrote: »
    Too right !
    Every thread in crypto subforum whether Litecoin, Tether, Ether, or Bitcoin is developing into a tax preach-fest.
    Enough already !

    Its not a preach-fest, its attempting to correct the miss-information thats being posted on every thread.


  • #15
    pro_gnostic_8
    Registered Users Posts: 1,223 ✭✭✭pro_gnostic_8


    Whatever it is, all this tax talk is burying the core conversation on the particular threads.
    Even in your own post above you mentioned it (tax) "being posted on every thread".
    I would like to see tax issues being discussed on a dedicated TX thread ............. and kept there. :)


  • #16
    GreeBo
    Registered Users Posts: 27,030 ✭✭✭✭GreeBo


    pro_gnostic_8 wrote: »
    Whatever it is, all this tax talk is burying the core conversation on the particular threads.
    Even in your own post above you mentioned it (tax) "being posted on every thread".
    I would like to see tax issues being discussed on a dedicated TX thread ............. and kept there. :)


    You mean such as this thread?! ;)


  • #17
    pro_gnostic_8
    Registered Users Posts: 1,223 ✭✭✭pro_gnostic_8


    Good man !
    Well done. :)


  • #18
    Inquitus
    Registered Users Posts: 13,729 ✭✭✭✭Inquitus


    Tether is a Ponzi scheme, in fact its just a scam scheme, without even the finesse of a Ponzi and it will collapse shortly. It's run by shady people, they claim to have regular audits, but they have never had one, and recently split up from the firm they had engaged to audit them. When this house of cards collapses, it will take Bitfinex with it. Since Dec, they have printed 1bn of new Tether despite no proof they have the required money to back it up, obv the concept is each TUSD has a $1 in the bank backing it up. The USCTC has just started to investigate them, so I don't think there is long left, this collapse will hammer the price of cryptos on the back of all the bad press it will create.

    Do your due dilligence, read up on Tether, and whatever you do don't keep your cash or currency in an exchange like Bitfinex that only allows withdrawals to TUSD and not to real USD. Once the 1:1 peg is broken people will be trapped on that exchange and the conversion rates for cryptos to TUSD will start to diverge from 1:1 to 1:? as faith in the TUSD is completely broken. This is imho the biggest crisis waiting to happen for cryptos at the moment. It will not be the end of them, for sure, but it will certainly cause a massive, at least short term, loss in crypto FIAT values.


  • #19
    makeorbrake
    Registered Users Posts: 4,664 ✭✭✭makeorbrake


    Inquitus wrote: »
    Do your due dilligence, read up on Tether, and whatever you do don't keep your cash or currency in an exchange like Bitfinex that only allows withdrawals to TUSD and not to real USD.

    Just in case that was aimed at me as OP, then I immediately discounted the notion of using it given that it states in their small print that they don't guarantee that the value of your tether will always match USD.

    What I failed to pick up on at the time - was the implications tether could have on BTC. Had I have twigged it, it may be that I would have moved certain obstacles to allow me to cash out of BTC earlier than I ended up doing.

    It's also prevented me from opting back in to BTC. I can't see how this Tether issue is going to come to a head? If Tether is registered in Hong Kong, can the HK authorities not audit them? This mess needs to be put to bed once and for all.

    In the meantime, Bitfinex have expanded, opening up an exchange that works with Ethereum.


  • #20
    Inquitus
    Registered Users Posts: 13,729 ✭✭✭✭Inquitus


    makeorbrake wrote: »
    Just in case that was aimed at me as OP, then I immediately discounted the notion of using it given that it states in their small print that they don't guarantee that the value of your tether will always match USD.

    What I failed to pick up on at the time - was the implications tether could have on BTC. Had I have twigged it, it may be that I would have moved certain obstacles to allow me to cash out of BTC earlier than I ended up doing.

    It's also prevented me from opting back in to BTC. I can't see how this Tether issue is going to come to a head? If Tether is registered in Hong Kong, can the HK authorities not audit them? This mess needs to be put to bed once and for all.

    In the meantime, Bitfinex have expanded, opening up an exchange that works with Ethereum.

    Tether is based out of the British Virgin Islands, the same as Bitfinex, and the BVI are a bit of a wild west for financial regulation, let alone crypto regulation. Basically they exist outside of any major regulatory environment which is how they have managed to print 2.2bn of TUSD without any proof they have the funds to support it. With the USCTC investigating them, I guess they may come under the microscope now and the likelyhood of being exposed is greatly increased.


  • #21
    makeorbrake
    Registered Users Posts: 4,664 ✭✭✭makeorbrake


    Inquitus wrote: »
    With the USCTC investigating them, I guess they may come under the microscope now and the likelyhood of being exposed is greatly increased.
    Do they have any jurisdiction? Do they have proper access in order to investigate properly?

    Don't get me wrong - I want them to be investigated. I want this thing to be cut open. Perhaps it isn't a problem. However, if it is - lets deal with it right now. That could mean some pain for some - but best to deal with it sooner rather than later. Otherwise, it will remain a black cloud over BTC (and of course, tether itself).

    Furthermore, some thought needs to go into how this can be prevented or avoided in the future. Perhaps it's just an acceptance that centrally issued tokens can't be trusted - full stop?


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