Replies (20)
More people in the world want dollars than bitcoin so I think the idea is to provide that need on Bitcoin so that when they're ready to adopt bitcoin and swap their USDT, they'll already be in the network. Basically more on ramps and deeper liquidity.
I think most people want stability. I want to hodl bitcoin longterm, but for day to day transactions, I don't want the money in my lightning wallet to fluctuate. it's not about investing, it's about commerce.
That sounds reasonable. If you say they are already in the network. What does that mean exactly? In both cases (Lightning network, Liquid) you need Tether to make a swap. I don't quite understand the advantage of being “in the network” yet.
I understand the benefits of Tether USDT. I just want to understand in more detail what the advantage of USDT on Lightning is compared to Liquid, for example. In both cases, you need permission from Tether.
It's easier to get sats for your USDT if your USDT is already on Bitcoin/Lightning. As opposed to your USDT being on Tron, for example.
Wicked, is there somewhere I can read (in laymans terms) how this actually works? Considering the exchange rate volitility, I don't really understand. Are they going to like wrap a dollar in 10 satoshis or something? I mean, don't they undermine the stability of their "pegged" dollar by transmitting it with bitcoin which could run away from them at some point?
It won't be pegged but it'll be much easier to atomically swap for sats if it's already on the same payment rails.
I guess I'm asking is how is bitcoin, the token, being used to transmit data that can be interpreted to constitute USDT on whatever platform that data is being interpreted. To that end, if the quantity of the btc token being transmitted change in value significantly, won't that impair the stability of the USDT value denominated in USD?
I try to understand. But why is it easier? Is it a usability issue? In Aqua Wallet, for example, I can simply swap it. It's easy. Is it more permissionless?
No because the USDT token isn't tied to the bitcoin itself. It's just using the network to transmit and store the data needed to change its ownership. Similar to how ordinal NFTs/shitcoins are doing it.
Dealing with one network instead of two is just easier. I don't know how else to put it lol.
🙏🏽
I'll have to explore it more. It's true though that to send the USDT from ony person to another it would require either a lightning transaction or an onchain transaction right? Even if those transactions are small?
nostr:nevent1qqs9jlnd0egmc3ea9f37qu7xaf9qw4qqqrfncyxqs23zswfdwmy7fygpr4mhxue69uhkummnw3ezucnfw33k76twv4ezuum0vd5kzmp0qgsxwr42cjdv44uy2jkc8c6yx0n95fkg3r9y20fg4yf9nn7tafq9rjcrqsqqqqqpvfsnkd
nostr:npub1wnlu28xrq9gv77dkevck6ws4euej4v568rlvn66gf2c428tdrptqq3n3wr and nostr:npub1h8nk2346qezka5cpm8jjh3yl5j88pf4ly2ptu7s6uu55wcfqy0wq36rpev
had a great take on Guy's Roundtable #6
https://fountain.fm/clip/qqtm7MIP8dyqYeLpzCsGIf you're in the US, using tether makes no sense. You can keep your fiat in nostr:npub1xkere5pd94672h8w8r77uf4ustcazhfujkqgqzcykrdzakm4zl4qeud0en to earn 3.8% interest that is paid in bitcoin.
You can easily transfer it to nostr:npub1ex7mdykw786qxvmtuls208uyxmn0hse95rfwsarvfde5yg6wy7jq6qvyt9 to pay bills. Not everyone is so lucky.
Especially if you live in New York.
How so?
HE'S NOT LUCKY
