What About USDT (Tether)?

On the application of stablecoins

TLDR:

  • Bitcoin = long-term security, sovereignty, and alignment with biblical principles of truth and stewardship.

  • Tether (USDT) = short-term stability and emergency aid but proceed carefully with the trust involved.

What is tether?

According to their website, Tether (Also known as USDT) “is the most widely adopted stablecoins, having pioneered the concept in the digital token space. A disruptor to the conventional financial system and a trailblazer in the digital use of traditional currencies, Tether tokens support and empower growing ventures and innovation throughout the blockchain space. Tether tokens exist as a digital token built on multiple blockchains.”

It is NOT Bitcoin, although the company values Bitcoin. It’s more like a ticket or token linked to the US dollar. It feels the impacts of inflation and government manipulation to the same degree as the US dollar.

However, it’s not entirely worthless.

Bitcoin: When and Why to Use it

Pros

  • Decentralized: No central authority; aligns with biblical justice and fairness (Proverbs 11:1).

  • Censorship-Resistant: Supports missions in restricted areas (Matthew 28:19).

  • Fixed Supply: Only 21 million Bitcoins exist; promotes good stewardship (Proverbs 21:20).

  • Transparency: All transactions are public and verifiable (Luke 8:17).

  • Borderless: Ideal for global missions and donations.

Cons

  • Volatile Price: Value fluctuates, complicating budgeting.

  • Learning Curve: Requires understanding wallets, keys, and security.

  • Irreversible Transactions: Mistakes can't be undone.

Use Cases for Bitcoin

  • Long-term savings and wealth preservation ("digital gold")

  • Supporting missionaries in restricted or closed countries

  • Sending donations across borders without intermediaries

  • Church endowments or reserves, small business reserves, or individuals to protect against inflation

  • Accepting tithes and offerings from a global congregation

  • Facilitating micro-payments using the Lightning Network

  • Secure, verifiable record-keeping for financial transparency

Tether (USDT): When and Why to Use it

Pros

  • Stable Value: 1 USDT ≈ 1 USD; good for budgeting.

  • Fast Transactions: Useful for quick, cross-border donations.

  • Accessible: Easy to use for stable financial management.

  • Low Volatility: Keeps funds stable for daily operations.

  • Limited Transparency: Ethical concerns about reserves (Proverbs 12:22).

Cons

  • No Long-Term Growth: Does not appreciate like Bitcoin.

  • Trust-Based: Requires trust in a private company (Proverbs 22:7).

  • Centralized: Funds can be frozen or seized.

  • Regulatory Risk: Governments may impose restrictions. (Bitcoin may have restrictions but there is no company on which to impose these restrictions)

  • Useful Bridge: Connects Bitcoin with traditional finance systems.

Use Cases for Tether (USDT)

  • Stabilizing church operational budgets

  • Sending quick, stable emergency relief funds internationally (Typically Bitcoin is still the best option here)

  • Temporary parking of funds during market volatility

  • Facilitating day-to-day transactions where stability is critical

  • Supporting missionaries in unstable economies with dollar-like stability

  • Transferring funds between exchanges efficiently

  • Simplifying payroll or stipends for international ministry staff

Summary:

  • Choose Bitcoin for long-term security, sovereignty, and alignment with biblical principles of truth and stewardship.

  • Choose Tether for short-term stability and emergency aid but proceed carefully with the trust involved.

"Commit your work to the Lord, and your plans will be established." — Proverbs 16:3