Why are stablecoins being burned instead of buying Bitcoin?

So I've been wondering, Tether and Circle just burned about 2.1 billion dollars worth of stablecoins in a week. That's a lot of cash, could've bought like 35,300 bitcoins. Why not do that instead?

They burn stablecoins to keep their value tied to the USD. It’s all about maintaining that peg. This really belongs in altcoin talks since we're not talking about Bitcoin directly.

Could be legal issues at play. Like, maybe their stablecoins aren't really 1:1 as they claim. I've had my doubts about that for a while. But they've been more involved in traditional finance lately, so who knows?

It seems like they're trying to manage excess USD that’s been redeemed. But how does that work exactly? And what about the frozen funds they have?

We don’t need to see these issues for Bitcoin to stabilize. Burning is mainly an altcoin thing. With Bitcoin, if you lose it, it just adds to the value of the rest. It’s designed to keep rising.

So, less USDT in circulation. But buying BTC with that wouldn’t change much. They keep issuing more USDT. Maybe it’s for regulatory reasons or they need more fiat.

Exactly! I see folks holding stablecoins and calling it an investment. Makes no sense. Stables are for when Bitcoin's price is crazy, not a long-term hold.

Not sure about the outflows, but burning definitely reduces supply. It seems like Tether is playing the long game while dealing with regulatory stuff.

I bet many holding stables are in countries with high inflation. People in stable economies don’t hold stables this way. They’re just tools for traders.

Nah, it’s just digits. They control the supply, so they can create more stables anytime. Burning them just shows less demand and helps their efficiency.

There are several reasons for burning stables. Could be redeeming for fiat, backing issues, or just moving coins across chains. Tether holds a big chunk of BTC, so they’re not just ignoring it.

Yeah, but regulators are breathing down their necks. They can't just print more freely. I remember when Tether printing affected Bitcoin's price positively before regulations got strict.

Burning stables doesn’t help holders directly. They could just buy Bitcoin instead. Seems like a waste of resources, honestly.

True. But they’re not obligated to help the community. They need to keep that 1:1 ratio to survive. One slip could lead to huge problems.

Maybe the burned coins come from frozen funds? Buying Bitcoin might just lead to a depeg situation.

Burning stables now or later doesn’t really benefit holders. It’s better to focus on Bitcoin, especially with all the frozen coins out there.

True, if they lower their backing, they could be in trouble. Holding Bitcoin could mean risks if prices drop.

Why even advertise burning? If they just keep 100 USDT, its value remains the same. What’s the point of burning them?

They won’t do what you suggest. Stablecoins aren’t about Bitcoin. They burn to remove excess dust, keeping the supply in check.

Exactly! Burning is just about ensuring they don’t exceed their fiat backing. If they don’t manage it, they risk getting flagged by authorities.